Iasta White Papers

Add comment March 24th, 2006 David Bush - Iasta

Thank you to everyone that made daily visits to ESF this week. We are very happy with the quality of the report that was collected and generated. Iasta is currently developing a white papers which will cover the strategic sourcing lifecycle and best practices that we have identified over the last 6 years. Strangely, there is a noticeable lack of quality white papers for this industry and we will be releasing several during 2006 (via RSS and traditional modes) to help alleviate this problem.

Entry Filed under: Analysts/Research, Functionality, General, Technology, e-Sourcing Marketplace

ESF Benchmark Analysis - Day 5

1 comment March 24th, 2006 David Bush - Iasta

e-Sourcing does not equal reverse auction
After looking at all the survey responses, it became clear that many companies – Large, Medium and Small – wrongly assume that e-Sourcing means reverse auctions. By making this assumption, these companies often decide not to use ANY e-Sourcing tool. Strategic e-Sourcing is not about reverse auctions; it is about using the right tool, at the right time to get the right results. It is widely agreed that not every item/category should be bid through a reverse auction. However, there are other ways to leverage the power of e-Sourcing without using a reverse auction. Sourcing professionals can distribute bid information through online RFQs or RFPs. They can collect pricing information through online sealed bids or RFIs. They can make complex award decisions through online decision analysis tools. And they can track supplier issues – contract or performance – through online tools. These tools can either be installed or hosted. These tools can be provided by one vendor or multiple complimentary vendors. Regardless, Large, Medium and Small companies need to look beyond reverse auctions and embrace e-Sourcing technology. By using e-Sourcing technology, companies can:

• reduce sourcing cycle times
• improve collection and distribution of bid information both internally and externally
• implement and capture greater savings
• ensure compliance and consistency across the sourcing team
• and maximize utilization of resources
• create accelerated knowledge transfer throughout the organization

The data Iasta collected seems to indicate that if companies decide not to utilize reverse auctions on a regular basis, they also seem to reduce usage of other types of functionality. This is both a disappointing revelation (the baby is sometimes being thrown out with the baby water) and a promising revelation (there are still massive opportunities for companies and vendors to grow with e-Sourcing technology). It seems that all companies need to adjust their own perception of what the benefits are of e-Sourcing and the vendor community needs to evangelize the soft factors and the alternative cost benefits to reverse auction technology.

If you are interested in reading the full report, please email survey@iasta.com and request a free copy of the e-Sourcing Benchmark Diagnostic. Please include your corporate email address only.

Entry Filed under: Analysts/Research, Contract Management, Functionality, General, Optimization, Project Management, Reverse Auctions, Spend Analysis, Supplier Performance, Supply Management Best Practices, Technology, e-RFx, e-Sourcing Marketplace