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Manual, fragmented approaches fall short of the demands of intricate stakeholder needs and variable supply markets. Automating sourcing activities through eSourcing automation is key to optimize procurement.

eSourcing incorporates digital tenders, reverse auctions, bid analysis, and contract award processes. Strategic sourcing is made more effective, agile, and intelligent via eSourcing automation.

This calls for comprehensive eSourcing suites that combine automation, analytics, and sourcing best practices into a single solution to deliver transformative results across complex, global organizations. With the help of sophisticated eSourcing solutions, procurement professionals can swiftly adapt to changing supplier risks and regulations while generating more value for the business. Let’s delve into the basics of eSourcing and its significance in procurement.

Why eSourcing Automation?

eSourcing automation helps enhance the efficiency and effectiveness of sourcing and procurement processes by reducing manual work, streamlining processes, improving data-driven decision-making, and enhancing collaboration and communication. As a result, organizations can achieve cost savings, mitigate risks, easily scale operations as business grows, and stay ahead of the competition.

Read here: High-Tech Companies Raise the Stake for eSourcing

How eSourcing Automation Streamlines Processes

1. Centralized sourcing platform:

All procurement related activities at one place ensures transparency, eliminates data duplicity, and makes the overall procurement cycle fast and eSourcing in procurement helps you achieve this. With an eSourcing automation software you manage supplier database, track purchases, collaborate with all key stakeholders, and analyze supplier performance at a single location.

2. Streamlined RFx:

Manual creation of RFx (Request for Information (RFI), Request for Proposal (RFP), and Request for Quotation (RFQ) is time consuming and prone to errors. Automating RFx saves time, negates any errors, and encourages fairness within the system. Try Zycus Web 2.0 based drag & drop functionality for RFX creation. eSourcing automation helps streamline RFx and facilitates a fair, transparent, and fast evaluation of supplier bids.

3. Data-driven supplier evaluation:

Choosing the right supplier is the bed-rock of robust procurement process. eSourcing automation enables evaluate suppliers on pre-defined parameters such as price, quality, delivery timelines, and past track record ensuring you procure from the best. This data driven evaluation mitigates the risk of engaging with unreliable and non-compliant suppliers.

4. Data analysis and reporting:

eSourcing automation software can analyze large volumes of supplier information, track key performance metrics, and generate detailed and easy to decipher reports. These reports can help procurement heads to identify cost-saving opportunities and areas that require improvement. By leveraging automation businesses can get access to a goldmine of data which enables them to continuously refine and enhance their procurement function, make informed decisions, and drive profitability.

5. Easy contract management:

Manual contract management can be a nightmare and often leads to incomplete paper-work, missed renewal dates, non-compliant risks, and a plethora of legal and regulatory issues. eSourcing automation provides a central repository for storing and managing contracts, notifies on forthcoming renewals, and ensures compliance with all regulatory and legal requirements. Most importantly, it minimizes and potential risks and misses.

6. Facilitates real-time collaboration and communication:

With collaborative tools like instant messenger, document sharing, task assignment, and more an eSourcing automation software enables real-time communication between all stakeholders involved, suppliers included.

7. Automates repetitive tasks:

Sourcing and procurement both involve many repetitive tasks like submitting an invoice for approval, approve pending requests etc. With pre-fed checks eSourcing automation automates these tasks and also flags any deviations and exceptions if any. It not only helps save valuable time by fastening the process but also eliminates the possibility of any manual errors and frauds.

8. Real-time monitoring and risk management:

eSourcing automation harnesses AI-capabilities to continuously monitor supplier performance, market conditions, and regulatory compliances. In case of any deviation it sends alerts enabling procurement teams to intervene and proactively take corrective measures. Given the dynamic nature of procurement its prone to several risks such as supplier non-compliance, supply chain disruptions, and market volatility (Read full report here)

In fact, 2021 witnessed a whopping 11,642 supply chain disruptions globally. The risks involved are high. Say for example, a supplier consignment is stuck and getting delayed while in transit due to bad weather and supplier updates in the system, it will be communicated to the procurement team in real-time to make alternate arrangements.

eSourcing automation software has robust risk management features inbuilt enabling procurement teams to monitor potential risks and proactively implement strategies ensuring business continuity.

Gartner Insight: Automated Sourcing is Becoming a Reality

9. Cost savings and optimization:

One can’t undermine the impact of procurement on an organization’s bottom-line. By implementing an eSourcing automated software procurement teams get access to real -time supplier data, contract terms, and pricing details. They are better equipped to negotiate business favourable terms with suppliers, get the best deals, identify cost-saving opportunities, and as a result optimize the overall procurement spend.

Press release – A Leading US based Infrastructure Management Service Provider Expands its Zycus Footprint to Enhance its Cost Savings and Efficiency Model

10. Scalability:

Change is the only constant and in the modern business landscape change is even fast. To stay relevant and thrive businesses need to keep pace with their external environment. As your business grows you need to expand your procurement, onboard new suppliers, implement new compliances, and revise your procurement policies. An eSourcing automated software helps enables businesses to seamlessly integrate any new changes and scale as the business scales.

Read here: 5 Ways eSourcing Tools Deliver ROI for Procurement

Zycus- iSource: Making Procurement More Efficient

Zycus eSourcing software – iSource has been named as an industry leader in “The Forrester Wave: Source-to-Contract Suites Q4, 2019. iSource harnesses the power of AI-Merlin Studio to automate the various tactical and transactional tasks of procurement making simple and complex sourcinga breeze.

Zycus’ iLogix is an advanced sourcing optimization tool that helps conduct large-scale sourcing events. Apart from the easy creation of 60000+ lanes and collecting responses from over 250 suppliers in an event in real-time, it also offers various bid optimization scenarios and ‘what if?’ analysis.

The collaborative scoring and approval workflows are tailored for each client based on their business policy which ensures a hassle-free sourcing experience for your procurement team. The key features of iSource include:

Comprehensive cost modeling
Ability to handle 10000+ line items per event
Collaborative scoring and approval workflows
Automated supplier ranking
e-Auction with live monitoring
Initiate contract creation during response analysis

And a lot more!
With these cutting-edge iSource features reduce your sourcing cycle time by 5-15%! Get better visibility on savings, control on total cost of ownership, simplified sourcing, agile supply chain, minimal risks, and seamless collaboration and communication with all stakeholders of procurement with Zycus eSourcing Automation software.
Book a demo and start your journey towards a more efficient, optimized, and fast procurement!

Related Reads:

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Autonomous Sourcing: Speed, Savings & Strategic Edge in Procurement

eSourcing automation, Strategic sourcing

Zycus

Zycus is a leader in Cognititive Procurement. A leading SaaS platform used by many large enterprises across the globe for enabling efficiency and effectiveness of the procurement function.