Interview Part III - Key Benefits of e-sourcing

March 7th, 2007 at 03:11am Agatha Degasperi - Iasta Europe

Q11: What were the key benefits of having implemented an e-sourcing solution and what would you say were the main lessons learned?

A11: The initial key benefits achieved were:

• The creation of a competitive environment for tendering all indirect expense contracts.
• Simplification and standardization of the tender process.
• Ability to track compliance to the Procurement Policy.
• Provide buyers with tools to make better business decisions.

On a more long term basis, by having created a knowledge center for all indirect expense contracts we started to use the tool for forecasting and budgeting expenses.

The main lessons learned were:

• Ensure you have a dedicated resource available during the implementation and first 6-12 months to train/support all users and ensure maximum benefits of the e-sourcing tool are achieved.
• Conduct frequent meetings with all users to share experiences/ideas.
• Obtain buy-in from senior management.
• Monitor the e-sourcing process and award decisions to ensure ethical behavior is applied.

Q12: Any advice to companies thinking of/or currently implementing e-sourcing?

A12:
- Obtain buy-in from Senior Management (invite them to an auction) and make sure everyone is convinced of the benefits of e-souring vs. traditional sourcing.

- Finance should take the lead in the implementation of e-sourcing (when there is no Procurement department). They have the information (actual expenses/ budgets/reporting etc.) and should be the key-driver.

- Create a Procurement Policy to encourage maximum use of the e-sourcing tool.

- Assign a dedicated resource (internal if you have one, otherwise consider looking externally) to train/coach buyers and ensure compliance with company policy.

- Support buyers not only with Training on the technology but also with guidelines on how to properly interact with suppliers and make sure they take advantage of all the tools in the system.

Entry Filed under: General, Interviews, Supply Management Best Practices, Technology

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