According to the US-based Aberdeen group survey, the main benefits cited by early users included double digit percentage reductions in procuring costs, shortened sourcing cycles, faster time to market, improved product quality, enterprise-wide standardisation of sourcing practices, improved supplier and market knowledge, enhanced sourcing skills, and the ability to apply strategic sourcing to a greater portion of spending. Overall, 84 per cent of e-sourcing users described benefits achieved as either in line or better than expected

E-procurement Vs E-sourcing The basic theme is the same: Using the Internet to assist in the purchase of goods and services needed by a business. But the reality is that e-sourcing has much more to offer and it focusses primarily on the quality and price of products with the best practices. Distinguishing components of e-sourcing solutions include some of the capabilities like online negotiations, collaboration tools, project management capabilities and document management functions

These capabilities help companies find ideal suppliers for their materials. Normally it is difficult for businesses to go through all the information about potential suppliers, and to compare one with another in order to make a final decision. Even judging by proposed cost alone may be difficult because one must take into consideration delivery time, quality of the product, and other factors. E-sourcing applications, however, provide tools, which let businesses organise and compare supplier information more effectively.

E-sourcing also encourages the development and use of best practices. Because most of the processes involved in e-sourcing will become templates, successful practices will be easily carried out each time these templates are used. These templates will also be accessible by other areas of the company. They too, can implement the strategies that have worked well for other departments. Such practices include defining and developing a procurement strategy for these direct materials, taking the time to prequalify suppliers in order to minimise the time spent on that area of the process, when it comes to actually making the purchase, establishing contracts for the necessary products in order to save time later, and developing strong relationships with suppliers.

E-sourcing can deliver many benefits for a business, including cost and time savings. But the best practices that it brings will help companies in having a good relationship with the supplier, who provides the most critical components or products, which is required in bulk,” says Indiamarkets chief executive officer (CEO) Rohan Ajila.

Increased Adaptability

For many companies, e-procurement started speeding up and shortening the process. They discovered that they were wasting time juggling numerous suppliers of the same product, or that they were paying the same vendor radically different prices. With e-sourcing, they could impact their profit margins.