Benefits of e-Sourcing

AberdeenGroup has listed the key benefits of e-Sourcing in its report ‘Secret of e-Sourcing success’ published in 2004. Here is the abstract matching challenges with key benefits:

Challenges Benefits
High material costs 14.3% cost savings,
Sourcing cycles average 3 to 4 months Cut sourcing cycles in half,
High sourcing costs Reduce administration costs by more than 60%,
Long time-to-market cycles (new product) Cycles shrinked by 10-15%,
Inconsistent sourcing procedures and skills Improved ability to standardize on sourcing best practices. Enhanced knowledge capture and transfer,
Inability to effectively exploit market changes Enhanced market knowledge and improved market transparency,
Unable to exploit low-cost country sources Dramatically improve ability to identify and negotiate with new sources of supply,
Transactional and combative supply relationships Detailed RFx and enhanced collaboration clarifies expectations and improves supply relations. Cycle times savings free up buyers to build and develop supply base,
Inadequate spend under management Process efficiencies empower application of strategic sourcing to more spend,

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