In this fourth part, we will delve upon Benefits of eSourcing for Procurement Professionals in 2014. You can read the previous parts of this blog series, that discusses about Improving Profits(part 1), Improving Visibility(part 2) and Addressing Strategic Sourcing as a key capability related issue(part 3).
The survey results also show that, according to 29% of respondents, 80% – 100% of annual RFX’s are done electronically. This low figure indicates that organizations still need to make better use of technology and adopt an e-Sourcing solution for sourcing automation. As per the Hackett Group, World Class Companies handled 85% of the RFx electronically last year.
Benefits of e-Sourcing:
- Reduces cycle time:
A well-defined and automated sourcing process is easy to manage and provides output in a shorter time frame. According to a recent study by the Abeerden group,a structured process leads to a shorter sourcing cycle time by 25% – 40%.
- Avoid bottlenecks:
With higher visibility and control over the sourcing projects, the organization can easily identify the bottlenecks and take prompt measures to resolve them. This helps in cutting costs and realizing the savings opportunity.
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