Is e-Procurement the right way to go in order to reduce your costs?
Today’s Post is by Eli Razov, SafeSourcing Account Manager.
Is e-Procurement the right way to go for your company? Why not just keep doing things the old fashioned way of which there are many. What would the real difference be? There are many benefits that result from using an e-Procurement service provider. A very important benefit is the time it saves a company on everything that goes on behind the scenes of procurement, even a single item or simple service can result in many many man hours on your part in order to complete a project. Why?
First identify the item or service you want to take to market. That first step alone can take some time. If it is a current item or service you already receive, you need to discover if the specifications are something you need and want, or is this something you are sourcing because you no longer believe that is the best product for your needs. Next dig up some invoices because you want to make sure of your current price in order for you to know what you need to beat it. Great, now you know what it is and how much you are paying. Next you need to figure out where to get it. Thankfully the internet helps with this step. Use your favorite search engine and type in what you are looking for along with manufactures or distributors. At this point you may have a list of four or five companies. Now it’s time to get contacts for these companies. Sometimes it is as simple as asking for someone in sales, or maybe if you’re lucky and the person that answered the phone can help you. Often times however you get someone that will take a message and have a customer service representative call you. Guess what you are only a fraction of the way there, if they call back at all.
Once you are finally in touch with a sales rep, it is time to discuss what you need. Typically you have to send them the specifications which require an email or fax of what you are looking for and anything other information that ensures that they know exactly what you want. At this point, they compile pricing and work with their teams and eventually send you their “best price”. So now you have to do that 3, 4, 5 or more times so you can compare these prices. Now that you have prices, it’s time to test the quality of the goods; or maybe it is a service, and you have to do some research to see if this is a reputable company. You will need to research any good or bad ratings they may have. So after waiting a few weeks, you have found the lowest price of the collection, but does that still give you the quality you are looking for?
But was that the best price? Did you get the best “value”? Who knows, you have already put so much time into finding the right vendor or supplier, this has to be the best. That is until you’re at an event with some peers and a counterpart is bragging how they got the same items at a drastically lower price. Now what, do you try to get out of that contract or do you stick it out for the remainder and repeat the process?
This is where we come in. SafeSourcing a full service eProcurement service provider does the leg work for you. We run a live sourcing event from start to finish while you can focus on your other business needs. We research your products; develop specification documents from our comprehensive list of over 470,000 vendors to ensure that we find the right one for you. We ensure low pricing with a live online bidding event for the vendors. After a sourcing event we compile reports on every action taken, as well as request any samples on your behalf with a strict timeline that you agree upon. We actually take the stress out of the entire procurement process.
For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Representative we have an entire team waiting to assist you today