Why do you need to use eProcurement tools like eRFQ’s or Reverse Auctions

October 13th, 2022


Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc

Because of terms like Off-Invoiced Amount which is not a sustainable negotiation tactic

What aggravates me in Business-to-Business supplier/customer negotiations are old tactics like the term off-invoiced amount which are generally not captured properly or sustainable in your ongoing negotiations. The use of eProcurement tools that capture all information from suppliers drives better measurable savings that can be easily tracked across any enterprise.

The term off-invoiced amount is an amount which is reduced to a retailer in return of purchasing specific quantities of goods in a specific period of time to increase the volume of sale to the retailer.  Also, an off-invoice amount could be a sales promotion in which the manufacturer offers the retailer a price reduction on the product price at the time of ordering.

SafeSourcing is a Procure to Pay SaaS based provider of a number of e-Procurement solutions and associated white glove services that are part of our SaaS offered SafeSourceIt™ eSourcing suite. These include but are not limited to SafeContract™, SafePO™, SafeDocument™ and our SafeSourceIt™ Global Supplier Database that includes over 557,000 vendor/suppliers.

To learn more, please contact a SafeSourcing customer services associate.




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