Utilizing eSourcing Technology to Improve Sourcing for Manufacturers
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Sourcing is an essential step for every manufacturer. By using eSourcing technology, they can achieve higher cost savings, faster process cycle times, greater business transparency, and better control over their sourcing operations. However, some manufacturing companies do not understand what the technology can do, which can lead them to assume it can not meet their needs. Below, the experts at QStrat provide an overview of eSourcing technology, describing what it is, how it works, what benefits it offers, and how it differs from eProcurement technology to help you determine whether it is right for your business.
What Is eSourcing Technology?
The term eSourcing technology—i.e., electronic sourcing technology—refers to web-based systems that collect and compare information about potential suppliers to help customers choose which one best suits their needs. It can be used for a variety of steps of the supply management process, such as:
- Gathering information about potential suppliers to assess suitability
- Requesting quotes from potential suppliers
- Evaluating all of the provided information to determine suitability
- Managing bids from potential suppliers
- Selecting and awarding the contract to the winning supplier
Benefits of eSourcing Technology
Compared to manual sourcing methods, eSourcing technology helps streamline the above supply management steps, which can lead to considerable cost savings and profit increases. Additionally, it can help enhance supplier relationships by maintaining transparency and communication between the buyer and supplier and improve regulatory compliance by ensuring all supply management-related documents are easily accessible in one location.
eSourcing vs. eProcurement
Regarding supply management, the terms sourcing and procurement are often used interchangeably. However, they actually refer to different parts of the supply management process. Sourcing comes before the actual purchase of the products and services. It involves identifying and selecting the necessary products and services and negotiating, managing, and monitoring contracts with suppliers that provide them. Procurement refers to the actual purchasing of the products and services. It involves requesting, authorizing, and paying for supplies. As suggested by their names, eSourcing technology facilitates sourcing operations, while eProcurement technology facilitates procurement operations.
QLM Sourcing: A Better eSourcing Software for Manufacturers
Manually sourcing products and services can be tedious and time-consuming. Fortunately, eSourcing software can help streamline sourcing operations, allowing manufacturing companies to significantly improve their productivity and profitability. If you’re looking for a reliable eSourcing solution, the experts at QStrat have got you covered.
QLM Sourcing is a cloud-based supplier management software that allows you to manage all of your supplier contracts and sourcing projects in a centralized location. It enables you to:
- Compare and evaluate supplier bids
- Register and qualify suppliers using your criteria
- Simplify and automate processes and communications
- Report decisions and pinpoint opportunities for cost-savings
- Analyze spend with customizable reports
- Manage RFx workflow history with full-audit history
To learn more about our sourcing software and how it can benefit your company, contact us today.