e-Sourcing

As shown in above imgae which clearly represent the cycle and the boundary lines of e-procurement and e-sourcing.
As shown in above image which clearly represent the cycle and the boundary lines of e-procurement and e-sourcing.

e-Sourcing can be use as complete procurement solution where in same system procurement (paperless) process and Sourcing process coexists. However most of companies has implemented the other way i.e. they use this tool frequently as negotiation tool which helps them to negotiate specially in the circumstances where human factor involvement is more to elaborate more our team has covered all the buying item n industry being a automotive parts, being allocation of share of business, buying of general purchase items, capex one time investment related items or being the consumable item in canteen facility a salt, cabbage or even the liquid detergent soap.

When ever we use e-sourcing as tool or platform where all seller comes together and in real time they decide the selling price of item without knowing who is there competitor online and also with a transparent approach from buyer as well as seller side. This we term as ‘reverse auction’.

And in case of selling e.g. scrap where all buyer comes online and place their bid to get the business we call this event as ‘forward auction’.

Virtually, where ever transaction of money is involved and possibility of buying from more than one equally competitive source exists we can apply the e-sourcing tool and it give unbelievable benefit. Let me share the case of buying packing wood (where ever we could not avoid the usage ) our existing buying rates was near to INR 205 per cubic feet ( figures are notational only) existing supplier has quoted INR 220 per Cub ft and there was other interested source among same state who has inter quoted varying from 210 to 290 INR per Cubic feet. With such a wide gap first time we decided to go for e-sourcing i.e. n line bidding or on line reverse auction to our surprise we not even avoided the increase we landed with saving of approx INR 8 per cu feet which resulted in good saving.

Success of any forward or reverse auction event depends on how well the terms and clauses ans RFQ document is prepared which guards the interest of buyer as well seller may be against commodity fluctuation, supply scope, technical-commercial requirement packing conditions whom to approach in case of clarification and define contract period.

Most of the cases where we always fails by manual negotiation we get more satisfaction by getting good result thru e-sourcing



Avobe is the table, which show various area where we can apply the e-sourcing. However when it is clear that user is require some specific brand like if you want SONY brand TV then this tool is not effective.