eSourcing technology continues to have a transformative effect on the procurement process, maximizing its overall impact with significant cost and time savings for the buyer. But what about suppliers? Although there is a myth that eSourcing leans toward only benefiting the buyer, the truth is, eSourcing has benefits for both buyers and suppliers, especially if you’re using the correct eSourcing software and eSourcing tools.

Read on to learn more about the five key benefits of eSourcing, and how to find the right eSourcing tools to meet your company’s needs. (And we’ll dispel that myth along the way).

Benefits of eSourcing Tools:

1. eSourcing Transparency

One of the top benefits of using eSourcing software and an eSourcing dashboard is the transparency offered to buyers and suppliers, as both sides can access real-time information and feedback.

Buyers can see the big picture when it comes to what suppliers have to offer, while suppliers are able to see how they rank against competitors in real-time, particularly in reverse auction scenarios. Additionally, all internal stakeholders have full transparency as controlled by procurement. This creates a better team environment, especially when the team is worldwide.

2. Fast and Efficient eSourcing Tools

The “analog” way of sourcing can take weeks or longer to source, while with eSourcing it can be completed much more quickly. There is a lot of back and forth throughout the procurement process, and practicing eSourcing the old way is tedious, time-consuming, and inefficient for both buyers and suppliers.

Completing a standardized, targeted, online survey and price sheet is much easier for suppliers versus having to guess what’s important to a buyer and attach a proposal.

Also, both buyers and suppliers access central web-based eSourcing tools, which streamlines the process for both sides.

3. More Business Opportunities with eSourcing Tools

Not only does using advanced eSourcing tools help optimize and streamline the process, but it also gives you a chance to cast a wider net and include more unknown challenger suppliers, which often helps drive the price lower. In addition, using eSourcing software opens the door for many potential business opportunities once everyone has familiarized themselves with how the software works. Competitive advantages of the Simfoni eSourcing tool are abundant, with features that offer all event types, including sealed bids, RFI, RFQ, RFP, RFx, spend analysis tools, extensive questionnaire, and survey format types, as well as many other features to make your eSourcing process more efficient.

4. eSourcing Improves Buyer/Supplier Relationships

Buyer/supplier relationships can be tense, particularly when sourcing manually without software. This long and arduous process can bring about an adversarial relationship with suppliers due to the endless back-and-forth.

Because everything in eSourcing is transparent, suppliers know the process is fair, as all steps are performed out in the open.

5. Opens Playing Field for Suppliers

Sometimes, small business suppliers can have a hard time getting their foot in the door, often when the buyer already has strategic suppliers. However, with the right eSourcing tools, these suppliers have a better chance of gaining business, as all suppliers can see the same questions and answers.

Learn more about how the right eSourcing tools can transform your procurement process and improve supplier relationships. Schedule a consultation demo today!