Maximizing Source-To-Pay Efficiencies
Esourcing Tool
Executive-level managers, understanding their responsibility to the organizations bottom line, should thoroughly assess the eSourcing tools and solutions providers available. With large amounts of time and money at stake, executive decision-makers should factor their organizations size, scope, and financial position into the analysis and selection of an eSourcing solution provider.
Of equal importance is careful and comprehensive review of current process workflows across the team, along with any areas for potential process improvement. Identifying and researching the relevant leading eSourcing solutions on the market can help streamline operations for improved savings and system efficiencies.
Alternatives to Consider From internet auctions to voucher-based processes, eSourcing software platforms offer number of options for executive decision-makers to consider. Being well-informed on such options helps execs to select the best tool for their organization. An internet based sealed bid auction, for example, is popular choice for switching from paper-based bids. While providing more reliable data collection and sourcing opportunities, an internet-based auction can also connect bidders and buyers in ways impossible in paper-based bidding.
Areas of application From raw materials to supplies and services, vendors of all sizes can benefit from eSourcing solutions. Before setting up the tool, execs should identify problem areas and analyze current workflows. Properly implemented, eSourcing can reduce firm?s bidding time significantly. This can be done by creating standard that can be used across multiple bids, automating the entire process and enabling organizations to track data and analytics in real-time.
Overall Benefits Executive-level managers should know that an eSourcing tool, with its quality and visibility capabilities, can result in increased quality, improved delivery schedules and cost savings. Watch for better visibility of supplier contracts and pricing information, risk analysis, and an improved track record in compliance and negotiation skills.
Once the eSourcing tool is up and running, alternative procurement mechanisms, such as demand management and strategic sourcing, become viable.
ConclusionFrom executive decision-makers to frontline buyers, eSourcing solutions can provide wide range of benefits from cost savings to improved visibility. The right solutions and strategies can result in improved efficiency, streamlined processes and reduced costs. Execs should thoroughly automate, identify problem areas, and evaluate solutions in order to maximize source-to-pay efficiencies.
