Your 2023 Guide to eRFx
If you’re like most sourcing professionals, you probably rely on various software applications to help streamline your sourcing processes. But which applications should be in your toolkit? eRFx software should be an integral part of your eSourcing platform. Not only will using eRFx help you increase your cost savings, but it will speed up the overall procurement process while improving your vendor relationships.
In 2023 eRFx features will become even more robust, intuitive, and easy to use. Once you’ve familiarized yourself with the eRFx process, you’ll understand how it promotes efficiency and enhances your bottom line. Read on to learn more about eRFx tools, how they dramatically improve procurement, and the specific benefits that come from using eRFx functions.
What Is eRFx?
eRFx is an enterprise program that allows you to send different requests out to suppliers in order to satisfy fulfillment. By 2026, eRFx and procurement software is expected to reach a market value of $9.6 billion, according to Business Wire. Because of recent and fast-moving advances in technology, more companies can access the capabilities that this powerful software solution has to offer.
RFx is a term that means “request for X,” which can mean one of several things when communicating with suppliers: a request for quote, a request for proposal or a request for information.
- Request for Proposal (RFP). Sent out to potential suppliers so they can submit a proposal.
- Request for Information (RFI). This is the identification stage, where you are in search of potential suppliers to see if they can meet your requirements.
- Request for Quote (RFQ). Once you have a list of qualified suppliers, you then send a request for them to submit a quote.
- Request for Bid (RFB). Sent out as a solicitation for suppliers to bid.
The eRFx definition is the same as RFx, except that software is used and every RFx is performed electronically, most often using automated processes.
What Are the Benefits?
eRFx software simplifies the overall procurement process in several ways, including:
- Greater data visibility. Because this software automates aspects of RFx and has a centralized repository, all the data is in one place. Prior to the advent of this sourcing software, those in procurement would have to analyze data from multiple sources, which is extremely time-consuming.
- Global access. This software can give you access to global suppliers, which can be a significant advantage depending on the nature of your business.
- Reduced costs and errors. With automated processes performing RFx work, you spend less time on manual tasks and reduce the risk of human error.
- Better market overview. It isn’t easy making strategic decisions when you don’t have a good idea of the markets. With this software, you can request service and product catalogs from vendors to make more informed decisions.
- Faster qualification of vendors. Previously, selecting vendors would be lengthy, but with all the necessary supplier information at your fingertips, you can vet suppliers much more quickly.
- Shorter buying cycles. It’s always a benefit to reduce the procurement life cycle, and it allows everything to progress faster (e.g., RFPs, RFQs, etc.).
Other benefits of eRFX tools include lowered pricing and the ability to uphold company standards by adhering to standardization.
Even though it has been around for over 21 years, FlexRFP software is a solid decision for 2023. You get the benefits of electronic RFx software, and it has soft functionality with a cloud-based eRFx process. It also includes a second round of bids, so auctions are intuitive.
To learn more about intuitive, easy-to-use eRFX tools with robust features, speak to a Simfoni representative today about conducting a demo.