What Size Company Can Benefit From E-Sourcing Procedures?
Traditional sourcing methods date back to the beginning of the industrial revolution. They may be time-tested, but they’re still as slow and prone to error as they were when Henry Ford used them to order the supplies he needed to create the world’s first assembly line process. E-sourcing is the most cutting edge way to keep your supplies flowing and your projects on track, but they’re often seen as a big investment that only big companies can afford. Find out the truth about how big a company needs to be to benefit from e-sourcing platforms.
Large Corporations and Conglomerates
Naturally, the largest companies and corporations benefit the most from e-sourcing. When you’re sourcing thousands of unique parts, supplies or services, you simply can’t expect your employees to handle all of those details manually. E-sourcing software is practically mandatory for any sufficiently large business that is tired of unnecessary loss and delays.
Why is e-sourcing so valuable for the large company? Some of the reasons include:
- Consolidating similar or identical orders for greater volume discounts;
- Preventing lost or mismanaged procurement orders that lead to production interruptions;
- Coordinating requests from dozens or even hundreds of departments and sub-businesses;
- Organizing bids and contracts for quick review of overall spending;
- Generating in-depth reports and crunching the numbers for thousands of transactions for strategic and planning purposes.
While the world’s most well known e-sourcing platforms tend to focus their services on Fortune 500 companies, you don’t need thousands of employees and headquarters in five countries just to benefit from e-sourcing. Medium-sized and growing businesses need these advanced sourcing tools just as much as their bigger counterparts because they’re developing enough complexity to require technological help.
Sourcing and procurement represent two of the most complicated parts of running a business, and they apply to practically every type of business operating today. From manufacturing companies that need raw materials to tech startups looking for prototyping services, almost all medium sized companies need subcontractors or suppliers at some point. Yet they don’t necessarily have the constant, steady and stable demand generated by a large company.
E-sourcing shines in these situations that demand flexibility. Choosing a platform with a service tailored to on-and-off again orders allows you to seek bids only when you need them and drop out of the marketplace when you’re not in need of extra help. Many traditional sourcing methods rely on you building relationships with subcontractors, which requires your sourcing team to stay in regular contact with a wide range of partners. Using a platform like the European Subcontracting Network allows you to pick up new contacts as necessary to reduce the amount of effort spent on maintaining your network.
If you find and use the right services, e-sourcing is a good idea for even the smallest businesses. You may only run a family business, but you can still negotiate agreements with international suppliers by finding e-sourcing platforms that cater to your special needs. Look for low monthly fees since you’re likely to have limited orders and don’t need the same amount of services as a bigger company. Another good sign is compatibility with software you already use, from email clients to bookkeeping software. Being able to import your order records into your accounting software with the click of a button makes an e-sourcing platform more valuable for small businesses by eliminating extra work.
Register your company for FREE as a Subcontractor/Supplier or General Buyer with European Subcontracting Network!