Understanding Potential Supplier Risk with eSourcing Platforms
The Internet and new international transport solutions have revolutionized global markets. Businesses that operate internationally or globally are now searching worldwide when finding suppliers and vendors and esourcing platforms are leading the way for these businesses to make the correct and wise decisions.
Rifling through tens of millions of global suppliers can initially seem time-consuming. However, a well qualified eSourcing platform adds value by streamlining the process and widening supply chain visibility.
WHAT IS ESOURCING?
An eSourcing platform is for suppliers to provide quotes and bid for work online work. Just as international developments have lowered the walls for business and trade, suppliers can now seek work from companies in foreign countries.
GIVE YOUR BUSINESS THE BEST OPTIONS
Opening up your potential supplier choices to a worldwide level may seem daunting. eSourcing provides quick evaluation and shortlisting of vendors – and having all of this information in one place makes it extremely simple to manage.
When making a request for a supplier, businesses can set precise requirements. This slims down the field and prevents unsuitable vendors from submitting a quote.
BE AWARE OF INTERNATIONAL CONCERNS
Supply chain managers should consider the location of vendors. Choosing a supplier from a small country presents its own unique risks. Similarly, political instability, import and export regulations and international currency values can all be factors.
As part of setting your company’s standards, you can filter results by country or region. Vendors providing a quote via an eSourcing platform like ProRFx also attach their relevant information – you will know any associated risks.
CONSIDER YOUR SUPPLIER’S SUPPLIERS
One weak link in your supply chain can destroy the entire network. One example from the automotive industry is of a Chinese sub-supplier using counterfeit materials to make parts. The incident did not cause any lasting damage to the business, but the short-term costs were significant.
ESOURCING DATA CAN BE USED FOR SEVERAL THINGS
The information gleaned from an eSourcing platform can be used to inform other areas of the business. For example, concerns with supplier reliability and punctuality could be investigated using data. If a vendor is receiving bad reviews on social media, the risks involved can be avoided by choosing not to engage with them in the first place.