How Does e-Sourcing Compare To Traditional Sourcing?
How Does e-Sourcing Compare To Traditional Sourcing?
Over the past 30 years, the sourcing game has changed how companies do business globally. With the invention of many new online e-sourcing tools, our industry is changing the way that companies work with each other in order to reach a bigger audience. But how do the new e-Sourcing tools compare to traditional sourcing methods? Is it more beneficial for everyone to utilize the e-Sourcing tactics?
Here are just a few metrics to show how e-Sourcing truly stands up to Traditional Sourcing:
Percentage of Spend in Reverse Auction
- Traditional Sourcing: 0% to 10%
- e-Sourcing: 80%
Percentage of Spend Sourced (Including all RFX events)
- Traditional Sourcing: 0% to 35%
- 98%
Number of Events Per Year
- Traditional Sourcing: 0 to 100
- e-Sourcing: 1000+
Overall Efficiency of Sourcing
- Traditional Sourcing: Weeks or Months
- e-Sourcing: Hours or Days
Total Savings or Potential Return On Investment
- Traditional Sourcing: 0% to 5%
- e-Sourcing: 15%+
Geographic Reach Available
- Traditional Sourcing: Local or Regional
- e-Sourcing: Global
Percentage of Key Suppliers Involved
- Traditional Sourcing: 0% to 25%
- e-Sourcing: 98%
Return On Investment from Sourcing (Timeframe for Savings)
- Traditional Souring: Months or Years
- e-Sourcing: Days or Weeks
In every scenario, the e-sourcing tools came out ahead of the traditional sourcing available. Now obviously in 2014 and heading in to 2015 shortly, businesses are looking to cut cost yet still produce the highest quality of work possible. The bottom line is always present and with e-sourcing, you can see that the bottom line trumps traditional sourcing in both the return on investment and total savings categories.
By utilizing an online e-sourcing tool such as the one by ProRFx, you can end up saving money, yet still produce that high quality product you have been searching for. Every company is different and in the end it truly does come down to how well your business can succeed and adapt with e-sourcing, but the overall effects that it will bring not only to the return on investment, but to the employees involved in the process will make this an easy decision. The world is going global and by utilizing an online e-sourcing tool, your company can as well.
