E-sourcing is the process of using
technology to manage the sourcing of goods and services, and procurement
software can provide a variety of benefits for organizations that use it for
e-sourcing. Here are some statistics and examples to illustrate these benefits:
- Increased efficiency and cost savings: A
study by the Aberdeen Group found that organizations that use e-sourcing
software can reduce the time and cost associated with the sourcing process by
up to 50%. One example of a company that has seen significant cost savings
through the use of e-sourcing software is GE. The company has implemented
an e-sourcing platform from Zycus and achieved a 35% reduction in the time
spent on sourcing activities and a 10% reduction in the cost of goods. With
FactWise’s end-to-end procurement platform, teams can achieve up to 25% in cost
savings via analytics and 20% increase in efficiency via automation.
- Improved supplier management: E-sourcing
software can provide organizations with a centralized repository of supplier
information, including data on supplier performance, compliance, and risk. This
can enable organizations to effectively manage their supplier relationships and
to quickly identify and address any issues that may arise. For example, IBM
uses its procurement software IBM Emptoris to manage its supplier information
and evaluate suppliers based on pre-defined criteria. FactWise offers holistic
supplier analytics across price, on-time delivery, quality and others, so that
teams can easily track supplier performance. Our impressive selection algorithm
helps users ensure they work with the best-rated vendors across parameters that
are most important to their specific requirements.
- Better negotiation and decision-making: E-sourcing
software can provide organizations with real-time data and analytics on
supplier prices, lead times, and quality, which can enable organizations to
negotiate better deals and make more informed purchasing decisions. A study by
the Hackett Group found that organizations that use e-sourcing software can
achieve an average cost savings of 8% on their purchases. FactWise offers
dynamic RfX analytics alongside historical and vendor performance analytics to
ensure that teams can leverage decision intelligence and always be data-driven.
- Enhanced compliance and risk management:
E-sourcing software can include built-in compliance and risk management
features, such as contract management, supplier onboarding, and e-auctioning.
These features can help organizations to comply with regulatory requirements
and to mitigate risks associated with procurement activities. For example, the SAP
Ariba e-sourcing platform includes built-in compliance and risk management
features, which have helped its clients to ensure compliance with regulatory
requirements and to mitigate risks related to procurement activities.
- Increased collaboration and communication: E-sourcing
software can provide a platform for collaboration and communication between
various departments and stakeholders within an organization. This can help to
improve cross-functional communication and to ensure that procurement
activities are aligned with the overall goals of the organization. Users
leverage FactWise’s smart dashboards and critical notifications to always stay
updated and connected, with no dependence on emails, phone calls and so on.
In conclusion, e-sourcing software can
provide a variety of benefits for organizations, including increased efficiency
and cost savings, improved supplier management, better negotiation and
decision-making, enhanced compliance and risk management, and increased
collaboration and communication. These benefits can help organizations to
reduce costs, improve supplier relationships, and make data-driven decisions. Companies
such as GE Power, IBM, and SAP Ariba have already reported significant savings
and improvements through the use of e-sourcing software.