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About eSource
"Sourcing" is the process of selecting a supplier and entering into
an agreement to purchase materials or services at negotiated prices
over a fixed period of time.
"e-Sourcing" leverages Internet technologies to make the sourcing
process faster and more efficient, and promotes increased supplier
competition for your business.
AMR research recently reported that firms using sourcing technology
saved 10-15% in direct goods and 20-25% in indirect goods and services,
not to mention significant reductions in sourcing cycle times. The list
of companies and independent research groups endorsing E-technologies
and E-Sourcing solutions grows every day. Here at MSA we use an
E-sourcing solution in our own procurement process. Here is what we
have learned from personal experience:
- We estimate the Purchasing hours of effort to complete a
sourcing event (select suppliers, get pricing, analyze results,
and choose winning suppliers) has been reduced by half.
- Suppliers have bid more than one time 66% of the time
during each sourcing event
- Interactive bidding reduced the initial low bid 33% of
the time.
- additional savings were achieved 9% of the time as a
result of on-line negotiation.
- 42% of events were completed in less than 1 day.
- 51% of events lasted 1 to 3 days.
- 7% of events lasted over 3 days.
The platform provides unique and private web-portals to buyers
and suppliers. For buyers; there are portals to qualify new
suppliers, conduct Web-RFQ's, conduct reverse auctions, negotiate,
and auction excess inventory. For suppliers there are portals to
review the opportunity, submit bids, and send messages directly
to the buyer.
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