Automotive firms in the UK are always on the hunt to enhance their business processes to obtain more profitability. The emergence of technology has resulted to a massive alteration in the way businesses run and engage with shareholders.
Resource: SMMT, 2020
E-sourcing has become a crucial procurement tool that enables organizations to connect, filter, and shortlist suppliers.
Are you one of those automotive companies deciding if moving your procurement processes into e-sourcing is a good idea? You see, the benefit that comes with it is exceptionally advantageous for your organization, especially when it comes to your reputation and ROI.
How Can You Benefit from an e-Sourcing Platform?
The reason why e-sourcing has become so widespread is that the internet brings automotive suppliers and providers close together. It facilitates a more effective process, enhanced communication, and lowered costs.
Click to access SMMT`s "RISKS AND OPPORTUNITIES UK AUTOMOTIVE TRADE IN A POST-COVID WORLD" Report 2020
· Efficient communication
Did you know that an e-sourcing platform is a self-contained auditable system? It allows you to send out information about your requirements to the supplier and communicate with them digitally – all in just one system.
That indicates that various buyers within the company can access the data without depending on different forms of communication, such as emails, which can be located on a specific buyer’s computer.
· Save a massive amount of time
One of the benefits of using an e-sourcing platform is that it simplifies the sourcing stage. You see, the sourcing stage is the time it takes to locate the materials you need and at the best value. That stage is reduced through reusable online requests and other features.
What’s more, it saves time finding new automotive suppliers. It is more practical and simpler to attract international suppliers with a published request through the thousands of automotive suppliers registered on your selected e-sourcing platform. How amazing is that?
Ultimately, it has pre-made standard reports. These reports can be downloaded from different locations within an e-sourcing platform. That lowers the need for manual creation of documents or any intervention; hence, saving you a substantial amount of effort and time.
· Enhance and strengthen supplier relationships
Another excellent advantage of an e-sourcing platform is strengthening the relationship between suppliers and buyers in openness and transparency. Using e-sourcing platforms helps you better understand a potential supplier’s culture by enhancing transparency and giving a much clearer framework for how an automotive company will market with its products or services.
· Minimize cost
Note that e-sourcing platforms accelerate the entire procurement stage; hence, decreasing the overall time of the tender procedure and lowering the number of hours procurement supervisors spend on tendering. That enables them to have more time to concentrate on other strategic tasks.
While, the process efficiencies that such platforms bring lower costs for sellers and buyers, especially in paper and print, you also achieve a competitive pricing (on average 9%) with the help of online biddings on e-Auctions.
Due to the unstable economic conditions and continuous evolution in the automotive industry, automotive companies should adapt to changes by embracing new business practices. An e-sourcing platform brings buyers and suppliers together by lowering costs and facilitating better communication and negotiation processes.
Are you ready to work with an e-sourcing platform? At Levene Consulting, we are the authorized distributor of e-sourcing software "Promena" by ZER.