Last week’s post looked at how e-sourcing enables firms to reduce sourcing costs, thus leveraging purchasing in a way that adds value to the business. Today’s focuses on how value is added by enhanced transparency.
Enhanced transparency
e-Sourcing confers a benefit critical in today’s business environment – an audit trail. An easily auditable purchasing function is essential to demonstrating compliance, regardless of whether a firm is in the public or private sector.
Stakeholders get to see how much was spent, on what, and by whom. Adherence to rules and regulations on purchasing also sends a message to stakeholders that the firm is proactive when it comes to risk management.
How does SourceDogg allow transparency to be achieved?
– Comply with auditing and head office requirements by exporting and sharing all data for any or all sourcing events.
– Discourage ‘maverick buying’ with a request approval system and a high level of usability that encourages staff buy-in.
– Sourcing objectivity and fairness is upheld with an even-handed and like-for-like scoring system; a sourcing event message board visible to all competing suppliers; and managed access to supplier quotations and tenders.
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We’ll conclude next week with a look at the the third way e-sourcing facilitates strategic purchasing: data analytics.
Can’t wait? Read on by downloading our white paper, ‘5 steps to boardroom strategy and how e-sourcing can make it happen’.
