Friday 27 June 2014

Gain Competitive Advantage via Implementing eSourcing Technology

Authored by Usama Shahid

During the past two decades, companies have adopted different strategies to rationalize and consolidate their supplier base. In many cases, the supplier rationalization programs have  created a single sourcing strategy for many commodities. This strategy has enabled companies to build stronger and more collaborative relationships that deliver a range of benefits, including:

  • Improved bargaining power to reduce costs
  • Automatic Evaluation of Supplier Performance
  • Maintenance of supplier score Card
  • Decreased effort to track supplier performance and manage relationships
  • Improved innovation and design collaboration
  • Easy access for Buyer and Suppliers
  • Transparent Environment
  • Improved plan synchronization and information exchange
  • Improved supplier 
Now a day’s many companies have been able to gain a competitive advantage by enhancing the capabilities of their supply chain via using the eProcurement technology. The realization of cost savings has been further enhanced by eSourcing management. This eSourcing technology has revolutionized the Procurement culture globally.

eSourcing globally has contributed significantly to cost reduction objectives, it has extended the length of the supply chain and has made companies to gain more cost saving by sourcing through the countries where goods are available on cheap rate. But this also brings supply chain risks that companies must now manage which are as follows;
  • Lead Time Variability
  • Availability of Goods
  • Quality Risk
  • Financial Risk
  • Vendor Liquidity
When evaluating the use of global sourcing many procurement managers have become very concerned about their risk exposure and are seeking options to reduce risk in Supply Chain process. But eSourcing has surely empowered companies to bring cost savings, transparency, Audit Trail, fully automated process for their supply chain department.