eSourcing, or electronic sourcing, is a corporate purchasing strategy. Its aim is to identify the most attractive suppliers, i.e., those offering the best value for money, while offering the shortest lead time.
The only difference between eSourcing and sourcing is the use of the internet.
eSourcing relies on information technology and dedicated software and web platforms to find new suppliers.
The internet offers numerous sites dedicated to this eSourcing activity. Marketplaces dedicated to B2B are important instruments for improving the efficiency of purchasing activities.
Thanks to them, the role of buyers is considerably simplified, as are their relationships with suppliers.
Their choice of products is now based on electronic catalogs, and new contract negotiation methods are also emerging.
For example, eSourcing relies on numerous auction sessions, which tend to speed up the negotiation process.
As you can see, the eSourcing process takes place before procurement.
When you consider that purchasing accounts for between 30% and 70% of the sales of large companies (statistics which vary considerably from one sector to another), being able to compare suppliers quickly and easily brings major benefits.
eSourcing improves spend management and reduces purchasing costs, thus boosting profitability.
For this system to work, all eSourcing players are obliged to be very precise about the product or service being negotiated. Both parties must provide clear information.
Suppliers need to be very explicit to enable relevant comparisons to be made.
Buyers, for their part, also have a duty of transparency, especially if they wish to obtain relevant responses to their invitations to tender.
eSourcing offers a much wider range of potential suppliers.
As a guide, a traditional negotiation starts with five or six suppliers. When negotiating on the internet, it’s often the case that a hundred suppliers are competing with each other.
This competition lowers purchasing costs considerably, which is a significant opportunity for retailers.
eSourcing is a small revolution in the world of purchasing.
It also provides a clearer view of the supplier market, enabling buyers to make their selection with full knowledge of the facts.
This technological transformation has radically changed the management and purchasing function within companies, forcing dedicated departments to adapt and evolve in line with trends.
