Effective E-sourcing: How to get started and achieve sustainable benefits?

Organizations are always on the quest to improve their business processes to achieve more success in terms of profitability. The emergence of technology has led to a fundamental shift in the way businesses operate and engage with stakeholders. For instance: E-sourcing has become a key procurement tool, allowing companies to connect, screen and shortlist suppliers. Deciding to transition your procurement processes into e-sourcing is a big decision. The advantage that comes with it is highly beneficial for your organization in terms of your return on investment as well as your reputation.

Effective E-sourcing: How to get started and achieve sustainable benefits?

Before making this essential shift, it is critical to understand the process of e-sourcing and the steps your company will need to take to make the transition seamless. Training represents an integral part to bring about this smooth implementation. It is the responsibility of the organization to ensure that its employees have an in-depth understanding about the application of any new technology. This will ensure that staffs are equipped with the necessary skills to manage the e-sourcing platform effectively, using best practices.

There is a large variety of training currently available in the market to prepare companies for the implementation of an effective e-sourcing platform, gearing different learning outcomes. However through modern learning techniques, employees will not only receive the required knowledge and skills but also be taught how to actually apply those skills as a preparation before applying them in their real-work situations.

The scenario-based interactive video training at Procurement Academy bridges the gap between theory and practice to achieve superior outcomes through a world class training program. Such training has proved to be as effective as classroom training in terms of retention and engagement. Training employees to make effective use of e-sourcing tools will make sure that they learn the core of this subject and eventually make the best use of it for successful business operations. In short, shifting to an e-sourcing system can be done smoothly through an efficient training solution. A good e-sourcing implementation within the organization will in turn lead to several benefits. These include:

  1. Reduce Cost

  • More competitive supplier quotations: Aberdeen’s research reports that the annual average savings from e-sourcing are 16%. Saving cost is in fact the main driver of e-sourcing. This system allows access to a broader range of suppliers and different bidding approaches. This leads to highly successful outcomes for buyers.


  • Administrative cost reductions: E-sourcing systems also speed up the procurement process; reducing the total time of the tender process and reduce the number of hours procurement managers spend on tendering. In this way, they have more time to focus on other strategic activities. Furthermore, the process efficiencies that these systems bring reduce expenses for both buyers and sellers, particularly in print and paper cost.

  1. Improving supplier relationships

  • Transparency in the purchasing process – E-Sourcing improves the relationship between buyers and suppliers in terms of transparency and openness in various ways. Participating in e-sourcing helps companies better understand a potential supplier’s culture by improving transparency and providing a clearer framework for how an organization is going to market with their goods or services.


  • Insight into buyer organization’s culture and structure – Suppliers can benefit by better understanding a buying organization’s mission, vision, and values as stated in the requirements of the RFP or eAuction. Put simply, it helps determine if you prefer to do business with the buying organization in the future.


  • Better competitive intelligence: Participating in e-sourcing provides a means to better understand your competition and creates competitive intelligence.


  1. Save time

  • Shorten the sourcing cycle: The sourcing cycle is the time it takes to find the supplies you really need and at the right price. This cycle is shortened with reusable e-requests and other features.


  • Save time finding new suppliers: Through the thousands of suppliers registered on the e-sourcing system, it is easier and more practical to attract global suppliers with a published request.


  • Pre-built standard reports: Pre-built standard reports can be downloaded from multiple areas within the e-sourcing portal which minimizes the need for manual intervention or creation of documents. This saves a considerable amount of time and efforts.


  1. Effective Communication

An e-sourcing portal is a self-contained fully auditable system which enables you to send out details of your requirements to suppliers and communicate with them throughout the process in an electronic way – all within one system. This means that different buyers within your organization can access the information without having to rely on emails or other forms of communication that may be located on a specific buyer’s computer.


  1. Evaluation process

An e-sourcing portal allows you to automate evaluation of the responses; there is no longer the need for separate evaluation exercises which can be time consuming. Besides evaluating the technical aspects of your requirements, an e-sourcing portal can also evaluate the commercial or pricing element. This means that the outcome of an evaluation can be derived from just a click.



Due to the constant evolution of industries and unstable economic conditions, organizations have to adapt to changes by adopting new business practices. As a key procurement tool, e-sourcing brings the suppliers and buyers together. It facilitates the communication and negotiation process as well as reduces a significant amount of costs. To achieve these sustainable benefits of e-sourcing, companies need to invest in an innovative training program where employees learn about the core of e-sourcing and at the same time practice those skills to consequently apply them in their jobs.

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