While technology, process and understanding may have come a long way in the world of eSourcing in the last few years, it seems genuine penetration into purchasing practice might still be some way off.
Latest research from the Center for Advanced Purchasing Studies (CAPS Research) reveals that, even in organisations where eSourcing tools are available for use, the typical user applies reverse auctions to only slightly more than 5% of total spend.
Indeed, Aberdeen backs this up in a recent sourcing study with the fact that even “Best-in-Class” companies only apply eSourcing to about 30% of total spend.
Why so low? The main culprit is almost always organisational, where responsibility for sourcing becomes too dispersed. Successful sourcing programmes, especially where lots become complex through the need to have multiple line items, for example, demand time, effort and expertise.
So build for success by making eSourcing operations centre-led, allowing stakeholders across the business to specify requirements, initiate sourcing projects and even run basic events, but channeling complex eSourcing projects through experienced eSourcing practitioners at the centre.
This kind of structure also makes it much easier to control strategic sourcing initiatives such as trying alternative lot structures, bundles, or negotiation types to encourage more aggressive bidding and alternative offers from suppliers.
Finally, don’t shy away from calling on the support of your eSourcing provider for help in penetrating new categories or applying new techniques.
