How large does your organization or company have to be to benefit from eSourcing?
In my experience it is easy to understand how a Fortune 500 company can benefit from eSourcing. I have also discovered that many mid-level and small organizations can reap significant benefits from eSourcing. This is true even if they only have one event a year or one a quarter.
At the most basic level eSourcing should produce hard-cost savings and time efficiencies. It should also provide a platform that minimizes the errors that are so common with offline programs like Excel, Word, Google Docs and email. Security should also be significantly enhanced with the right platform.
I have come to realize that many smaller organizations don’t realize that there are eSourcing platforms available. These tools can deliver a solid ROI and save significant staff time.
I have learned that some executives believe that their revenue must by greater than $200 Million to consider acquiring a platform.
This could be true for some industries where salaries are the primary expense. However, for the majority of companies and organizations the benefit from creating competition on key spend items is enormous.
Here are some examples to help you appreciate the value of eSourcing:
- A local consulting company in the commodity industry doubles the number of quotes they are able to deliver each day. The trend data contained in the system allows them to see at a glance historical trends and margins. Their success has “forced” other competitors to change their approach to providing quotes.
- A local manufacturing company “rents” a system to create competition for a one-time purchase of a key piece of equipment. Their suppliers realize that this event is being run by professionals and they need to step up their game to win the business. In the past, a phone call, a dinner and a handshake would have been enough.
- A local education organization hires a company to run their event to purchase 200 laptop computers. They realize a significant savings over the previous purchase of a similar number of devices. The success in this event generates interest in using the same approach for other large contracts like landscaping and janitorial services.
- A large medical hospital routinely uses eSourcing for large purchases. The platform makes it so efficient to generate an RFP that they utilize it on a $30,000 service purchase. They must meet a high standard on every purchase because of regulations. The platform is much more efficient even for small purchases and insures that the purchase will meet compliance regulations. The purchase also reduces the cost of this item.
The executives in these organizations realized that there was a better way. Cost control is always an important factor. Finding more efficient ways to do things is an overriding goal in a business climate where you don’t know who will become your next competitor.
If your organizations could:
- Generate measurable hard-cost savings and positive ROI
- Reduce procurement time
- Provide significantly better security for your purchase data
- Generate automatic reporting of trends in key spend categories
- Implement eSourcing in weeks not months…
Would you do it?
Of course you would.
If your organization is already up and running, then let your friends know who will benefit like you have. You will be a hero.
Action Step: If you would like to know if eSourcing will work for your organization, please reach out to me for a candid discussion. Not every situation will be a fit. But I will let you know quickly. If you are uncertain where to start, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want. If you would like to explore this topic in greater detail, please contact me.
EC Sourcing Group is one of the companies I represent because their tools have been created by dedicated and experienced sourcing professionals. They know the day-to-day challenges your team faces and have built their tools to solve them. If you want to know how, I invite you to request a demo or 30-minute discovery conversation so you can experience the platform, process, people, and tools. You can reach me at 973-936-9672.
Next week I will continue on this same theme so your organization can improve your bottom line.
If you would like to know more ways to reduce costs without changing the way you do business, simply give me a call or send me an email with your contact information and the best time to reach you.
You Won’t Drift to Success©
Think about it.
Until Next Time, I Wish You Great Success in Your Business and in Your Life