The Time Is Now For Strategic Sourcing

The Time Is Now For Strategic Sourcing

Filed under: Strategic Sourcing — Reverse Aution Editor @ 11:33 am

In excellent economic times, strategic sourcing is just a smart way for company buyers to be good stewards of money. In downturns, however, this guiding principle set for buying is simply essential. Putting the points of strategic sourcing to work can be difficult, however. This is not so for companies that discover the benefits of e-Procurement.

When the Internet is used to facilitate buying, companies often find a number of perks they may not have even considered. Beyond the expediency and convenience that buying online provides, some forms of e-Procurement fully embrace the principles of strategic sourcing. Reverse auctions, for example, are the quintessential way to put strategy into the buying process. This is so because:

Reverse auctions allow for competition – If a company wants to enjoy the best possible pricing on products and services, competition among sellers is a must. Reverse auctions are designed to foster competitive bidding.

Reverse auctions widen the net – A standard RFP process might be limited to a set geographical area, reverse auctions can be opened up to the world – literally. This can enable company buyers to be 100 percent certain they are getting excellent pricing on products and services.

A reverse auction allows vetting – When a reverse auction is used, buyers don’t have to deal with the unknown. The RFI process can enable buyers to request credentials to see if vendors meet their own prequalification standards.

Strategic sourcing is a guiding beacon for companies to follow in hard economic times. When the money going out is justified, the bottom line can be made much more solid.