Recently we spoke about the issues that many businesses have with not having some direct way to quantify e-sourcing results. We also touched base on why it is extremely pertinent to have communication with your e-procurement supplier in order to hit every return on investment you are looking to capture. With all of this being said, overlooking a simple contract can results in both of these issues arising further than what you originally thought possible.
Contracts are always a must in every time of e-sourcing situation. If you solely try to work within the guidelines of verbal agreements and invoicing to work through the dilemmas, then you will not be ecstatic when what you believed to be a match made in heaven cost you company dollars within a few months. E-sourcing contracts should never be overlooked as you always need to have a fall back in case something occurs that was outside of the original proposal or negotiation. When we looked at communicating with the suppliers originally, this was one of our biggest issues. You much have a form of communication that works for both parties, and a contract will help alleviate all of the potential miscommunications that can and will occur along the way.
To secure that all mundane e-sourcing mistakes are taken care of, have a lawyer review all of the potential contracts before anything is signed. In the perfect e-procurement world, the lawyer will also be there to help with the beginning draft as well. The more educated eyes you have on these papers, the more likely you will be to have a smooth supplier relation.
By letting this very easily overlooked e-sourcing mistake run wild could delay production, shipping, and time in general for you to receive your products or services, while increasing your loss of R.O.I. on the deal. Do not let this happen during your e-sourcing section of your business as it can effect all of those that are involved even further. Save the domino effect for when you are selling products for a positive return on investment instead.
For even more information on how to avoid e-sourcing mistakes, be sure to check out our other ProRFX e-procurement blogs.
And of course, if you are looking for the next generation e-sourcing and e-procurement tool, be sure to check out ProRFX for all of your online RFX, RFP and RFQ needs.