One of the most difficult things about searching for procurement and sourcing software is finding a platform that actually does what you want. Outsourcing technology has certainly come a long way, but just like every other area of business, there is no one-size-fits-all solution for everyone. You may find that your company's procurement process does not perfectly correspond to the solutions available.
When sourcing, you need a system that has a wide range of features. Make sure to search features before making a purchase. There are some "must-haves" that, if your eProcurement software is missing, will render your process ineffective.
eProcurement & eSourcing solutions have a lot of benefits, and we're here to help you find those that best suit your company.
eProcurement and eSourcing Solutions: Some Must-Haves in eProcurement
Streamlining your business is crucial to success. To make sure you can streamline, eProcurement systems should be integrated with other aspects of the business. Even if you don't think you need these features now, they will usually help with something down the line. So as you look for procurement software, look for:
- Data transparency. The data will be stored in a central repository, which will provide more than one useful feature (listed below). However, data transparency can contribute to your overall bottom line by ensuring everything is being tracked, recorded, and noted. Not only that, but it will give you a more comprehensive understanding of the situation. This is important for risk management too.
- Cloud hosting. All of this can be done with a cloud-based system, too, and that means no need to maintain an onsite system. This will give you full remote access to a centralized system- if you have an onsite system, it'll require more time & effort from you to get this.
- Ordering. This involves the creation of a purchase request or requisition, followed by approval, and finally creating a purchase order.
- Invoicing. Invoices can serve as an electronic copy for the company and may even be approved automatically, depending on the program.
- Catalog management. Here are some of the stages of electronics sourcing: suppliers providing their products to you via an electronic catalog. The important part of the process is that your employees can select their goods from the catalog and then those goods are automatically put on the purchase request and eventually the purchase order which streamlines the rest of the process, including automatically approving the invoice if the invoice totals match those on the purchase order.
- Collaboration. Central repositories and collaboration software are really getting more and more popular. It can offer a space where everyone in your team can view the latest information about projects, whilst not requiring any of them to be physically in the office. Likewise, you will want to give suppliers controlled access in order to work closely with them when the need arises. A lack of transparency can create significant challenges in communication.
Your procurement software should be able to perform the functions that you need to be done so you can focus on other important tasks in your workday. You could, for instance, use an e-reverse auction function to improve the success rate of requests so you get what you need when you want it.
eProcurement and eSourcing Solutions: Some Must Haves in eSourcing
eSourcing and eProcurement are closely related and they’re usually mentioned together. For example, if an article is about eProcurement solutions and then mentions that you need eSourcing software, they most likely mean that it’s part of the suite offered by the company. It's never just a case of one thing or another.
When buying eSourcing software, it's important to take into consideration the following factors:
- eRFx. To make sure your inquiry is the best it can be, you'll need all of the information before sending it. This includes questionnaires to offer feedback on pricing options, which will form part of the RFI/RFP.
- Reverse auction capabilities. Reverse auctions are a great tool for sourcing and should therefore be part of your eProcurement and eSourcing platform. Suppliers place bids that the buyer is then able to bid against, meaning companies get lower prices while saving time and effort comparing offers.
- Templates for RFP/RFI/RFQs. Drawing these up individually can be a nightmare. Make sure you have templates as part of your eSourcing software to streamline this process.
- Real-time response for strategic sourcing. The UI and UX of your program need to be able to convey supplier responses in real-time, so you won’t miss out on anything.
- Supplier evaluation and comparison. To find and compare suppliers, in-house evaluations, and supplier lists, you need a way to evaluate and compare suppliers. Make sure your eSourcing software has this functionality. For some, this might include an evaluation scorecard where several members of your team score supplier responses to help select the most qualified supplier in a methodical manner.
