Explore Strategic Sourcing Carefully
In an age when making every penny count matters, strategic sourcing is making much more sense. It is simply smart to justify purchases of products and services before buying. It is also wise to be certain the best possible pricing is obtained.
But, how can companies put the benefits of strategic sourcing to work for them without having to install a costly purchasing department to oversee every RFP? Why not consider the benefits of e-Procurement?
E-Procurement methods like reverse auctions can put the power of strategic sourcing to work for any business. Reverse auctions provide the careful checks and measures that strategic sourcing demands, but they can do it in a fraction of the time and a quarter of the effort involved in other methods of buying.
Reverse auctions are simply Internet-facilitated RFP processes. Buyers write out their specifications, post their auctions and receive bids from vendors that can conceivably come from all over the world. To vet suppliers, the best e-Procurement facilitators enable an RFI process so buyers can check seller qualifications.
Once reverse auctions start, potential vendors place their bids for a project. In some cases, open bidding will be allowed. This means sellers can see the bids of the competition and adjust accordingly. This type of competition can work very well in the favor of the buyer.
Strategic sourcing is a concept whose time has come. Putting this controlled form of buying to work doesn’t have to be difficult. When reverse auctions are used, diligence and expedience can come together.
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