In today’s current financial climate, the focus is very much on the public sector to save money, spend more wisely, and be more socially and environmentally conscious when making buying decisions. Therefore, finding solutions that make these decisions easy is extremely important to organisations. Could software with smart automation capabilities deliver outstanding time and cost savings? How do you leverage this software to fully benefit from eSourcing solutions?
We’re going to look at some of the ways in which cutting-edge eSourcing software automates essential repetitive, time-consuming tasks to free up employees who can focus on their core activities and drive revenue.
That’s just where the benefits start, but first, you have to discover how eSourcing software can work for you.
How Optimising eSourcing Processes Saves Costs
The software functions as an eSourcing platform that supports all the processes in the eSourcing cycle. This allows you to analyse your own spending and supplier screening and comparison, which gives you the insight to make a wise decision before signing any contracts.
The beauty of the eSourcing system is its accessibility and transparency. Suppliers can view the details of the tender directly and track bidding status and outcomes. In this way, they can learn more about clients and their preferred application formats. Buyers also provide feedback via the platform, so suppliers learn don’t make the same mistakes twice.
The platform provides a wealth of information on suppliers in the system, including their project performance (efficiency, productivity, quality), compliance with industry regulations, and risk management.
Buyers learn more about suppliers and can get a feel for which ones match their values and business practices. Buyers are also exposed to a greater number of suppliers from further afield than if they’d stayed in traditional sourcing cycles with a limited number from which to choose.
The more suppliers there are, the greater the competition and the better your opportunity to benefit from resulting price wars and cost reductions.
The software is cloud-based and geared towards immediacy. As soon as data is entered, it’s automatically stored and available to anyone using the system. Data typically includes supplier information, including prices, lead times, and quality. Buyers can access analytics and reports to compare service delivery and put together a promising shortlist of candidates.
With all of this information at hand, they can ask suitably probing questions, secure in the knowledge that the inherent transparency of eSourcing software makes lying virtually impossible. The comprehensive nature of the data and the insight that improves informed decision-making gives buyers negotiation power to get the supplier with the best cost-to-service ratio.
Many sourcing specialists have switched to the cloud side. However, it’s not enough to switch to eSourcing software. You must embrace it with open arms and set up training programmes for your employees so they can fully optimise each feature and function.
Effective team training, during which employees come to grips with the software, eliminates the need for micro-management. This has three benefits:
1) Employees become more efficient and can take on additional responsibilities if necessary.
2) Supervisors, managers, and department heads trust their teams and can confidently carry on with more essential activities.
3) Greater independence and accountability create an environment where natural leaders can shine and raw talent develop.
Many eSourcing software providers, including Delta eSourcing, provide training and onboarding services so your staff can operate the system in their sleep. Delta eSourcing also has a helpdesk you can contact if you need assistance.
Employees also need training on the new rules and regulations that apply to those who work in the cloud. Without completely knowing and understanding compliance requirements, your business is at risk of non-compliance and that can result in severe penalties.
There are some subtle benefits that aren’t as obvious as advanced analytics. Advanced communication, for instance, is an excellent, under-rated, benefit that can result in significant cost savings for your business.
Often, departments within a business or organisation aren’t fully aware of what the others do. They might have the impression wrong impression of their value. With eSourcing software serving as an information hub, departments come to understand each other’s functions and roles in the company. For example, after analysing some data, Department X might find that if they make an alteration to Process A, Department Y’s Process B will operate more fluidly.
Communication in general improves and can result in some interesting collaborations that yield critical operational cost reductions.
Improved contract management
For a long time, buyers found it difficult to monitor and track suppliers’ performance as it related to the terms of the contract. An eSourcing platform, which stores all data and can generate specific reports (in real-time) gives buyers the opportunity to manage their contracts effectively.
Software dedicated to contract management solutions simplifies multi-contract management. The clarity and accuracy gained gives contract managers the time to fully concentrate on the contract cycle.
Delta eSourcing’s Contract Manager software has features that include generating contract records, uploading contract information, and sharing contract data with other managers in the business.
By optimising this particular software feature, contract managers can oversee the entire process, keeping everything on track and on spec. They can also generate analytics and reports to more closely examine performance. This allows them to nip potential problems in the bud. It also shows which suppliers go above and beyond and will be added to their talent pool.
All-in-all eSourcing contract management enhances efficiency on both sides and can also aid the cost-saving initiatives both sides have implemented.
eSourcing supports procurement
eSourcing is perhaps the most important step in eProcurement. eProcurement relies on eSourcing solutions to collect and analyse data.
eSourcing managers can send advanced analytics to eProcurement managers so they have access to all relevant information and results they need to not only keep the supply chain running smoothly but also use the information for forecasting. With a long-term plan in place, buyers can design processes that will maximise opportunities and reduce risks, contributing to the company’s overall cost reduction plan.
Want to learn more about future planning and data insights? Check out Delta Market Analytics.
As both eSourcing and eProcurement are more commonly used, it’s important to ensure your staff are properly trained to optimise the features and use the data available to refine their relationship-building and networking skills. In this way, the “community” of suppliers and procurers can grow, everyone benefits from new ideas and perspectives, and the quality on both sides improves.
Is there more to come?
eSourcing and eProcurement have evolved exponentially since sourcing optimisation was discovered in 1995. These days, products are improved the day after they’re launched and that seems true for eSourcing. Many considered AI to be the next step in eSourcing software, so watch this space.