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, |