When it comes to procurement, technology can make a significant impact.
Take eSourcing platforms for example. Whether it improves efficiency or reduces costs, there’s no denying that automating processes can provide significant operational value. With minimal effort, you’re able to communicate your objectives clearly, minimize tedious back and forth coordination between individual suppliers, and substantially reduce human errors in the sourcing process.
However, beyond improving internal efficiencies, companies using eSourcing platforms should also know it’s a tool that can facilitate better working relationships between businesses and suppliers. This post explains some of the ways it can do so..
1. Helps you find the right supplier efficiently
Traditional methods of sourcing suppliers can be a long drawn-out process. It’s tedious, time-consuming and, given the effort it takes to individually coordinate and brief potential suppliers, leaves a lot of room for error.
An eSourcing tool that streamlines the selection process makes things a lot easier. The tool allows you to simplify the entire bidding process given that everything is available on a central platform. As a buyer, you’re able to request all the necessary information you need from all potential suppliers at the same time. You can easily compare results and determine which supplier not only has the best bid, but also best fits into your organization.
By identifying potential partners through eSourcing, you’re essentially starting a working relationship that wasn’t solely achieved through negotiation. It allows for time to actually recognize their strengths given that you’re removing the labor-intensive paperwork behind the process.
2. Improve communication between suppliers
Most of the errors made during the procurement process happen because of all the back and forth required to communicate with suppliers individually.
Typically, as you begin to search for suppliers, you will need to send out a brief to each of them. This means you will need to reply individually to their questions. A lot can get misinterpreted in the back-and-forth.
Using an eSourcing tool means all questions and clarification can be communicated via this centralized platform. Interaction on the platform is smoother and facilitates better collaboration. There’s also no need to keep repeating your answers given that everyone involved in the bidding process can easily refer to the information provided. In addition, coordination can be done in real-time.
Communicating in a structured way shows that you are considering your supplier’s time as well as yours. After all, as tedious as the procurement process can be for you, keep in mind that it can also be as time-consuming and complex for potential suppliers.
3. Provides unprecedented transparency
Any successful working relationship is based on trust. This can be difficult when you might be perceived to be starting a professional relationship on the wrong foot. sing eSourcing tools makes the process more transparent. Everyone gets the same access to the same information, and no one is given an unfair advantage.
This also translates to the selection process. Making your selection criteria available for everyone to access assures suppliers that they are all being evaluated on the same standards.
eSourcing offers a systematic and efficient approach to one of the most labor-intensive and complex processes in procurement–finding the right suppliers. Not only is this beneficial for operations, but it can also enhance supplier relations, which is critical to a project’s success.
Take advantage of Vendorful’s eSourcing platform and find out how we can help improve your procurement process, get in touch with us today.