e-sourcing choosing the right tool and category is vital to success
e-Sourcing is the use of internet technology used by purchasing professionals to find suppliers and negotiate prices or reduce cost for a wide range of goods and services. A variety of online negotiation tools are used including RFI (Request for Information, RFQ (Request For Quotation), RFP (Request for Proposal) and electronic auctions.
It is important to understand when and how each should be used to achieve the best results. Incorrect use can bring about unsatisfactory experiences and can lead to bad press for e-Sourcing.
This article focuses on the criteria which should be applied to determine the most appropriate e-sourcing tool to use.
Strategic importance of the category
An auction is generally recommended for those products with a high value and a minimum or small risk. High spend, low complexity is the ideal scenario for this type of price negotiation. The level of spend which will attract suppliers will differ from category to category but as a rough benchmark we generally look at spend over 150,000.
In nearly all other cases, requests for...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
