Top 4 Advantages of eTendering
If you’re still participating in a manual sourcing process, it’s likely time-consuming and frustrating at times. Over time, most aspects of sourcing and procurement have become digital (aptly named “eSourcing”), which has improved efficiency and cost for all of the supply chain. However, if you’re still unconvinced, read on to learn about several advantages of eTendering< below.
What Is eTendering?
eTendering or eSourcing, at its simplest definition, refers to an online sourcing process. The eTendering process relates to all stages of the process, from pre-qualification to archiving. Finding the right solution in which to conduct eTendering is important. Nothing is housed in local computers, and all business is conducted seamlessly through the internet. Because of its real-time, intuitive nature, this helps to manage and assess bids much more quickly, not to mention how easily it is to share information with an extended team.
If you’re wondering, what is the eTendering process?, there are stages and substages. The major stages of eTendering include:
- Pre-qualification and registration
- Public invitation
- Tender submission
- Close of tender
- Tender evaluation
- Award of tender
1. Transparency: An Advantage of eTendering
One of the main advantages of eTendering is transparency. Because all information relevant to the event is contained within an eTendering portal (i.e., it is stored in the cloud), everyone with access can see bids and contracts in real-time, including stakeholders. This allows for quick updates between buyers and suppliers, allowing for a faster process and a full audit trail.
2. Increased Efficiency: An Advantage of eTendering
Moving from a manual process to using eTender process software might have a slight learning curve, but one of the main benefits of using an eTender is increased efficiency. Software shortens the sourcing process significantly, and because of its transparent nature, fosters better collaboration with the team and suppliers. In the supply chain, procurement, and sourcing, things can change rapidly, but seeing information in real-time also means you can make last-minute changes in real-time if they’re necessary.
3. Cost Reduction: An Advantage of eTendering
Another top advantage of eTendering is cost reduction. This goes hand-in-hand with increased efficiency as they naturally complement each other. Still, you’ll also see cost reduction in other ways, such as a reduction in advertising and takeoff costs. eTendering also reduces labor-intensive tasks, which means less hands are needed on deck. The online format of eTendering also generates more competition, thereby lowering prices.
4. A Pathway to Digital: An Advantage of eTendering
eTendering also offers a pathway to digital. In other words, you can collect supplier information and transfer it into a contract and supplier database. This gives you ample space to evaluate suppliers, keeping things organized. Because everything is digitized, you can also see developing trends over time with the market and suppliers. This can help make better business decisions in the future. The importance of eTendering is apparent here, as it is the start of a digital warehouse of data/pricing at the item level.
To learn more about the advantages of eTendering or to set up an eTendering demo, contact us at EC Sourcing Group today at 973-936-9672. We want to help you reimagine the way you think about procurement.