The Inevitable Emergence of e-Sourcing

COMMODITY SOURCING GROUP, a certified, minority-owned
and operated, sourcing and procurement company examines
e-Sourcing in today’s business climate.

The low cost of the Internet provides an optimal channel for
communications and negotiations, enabling buyers to
interact with all trading partners, regardless of their size,
technical sophistication, or geographic location. It can enable buyers and sellers to exchange more dynamic content, including engineering drawings and process documentation.

E -Sourcing can dramatically streamline the sourcing cycle, improve negotiations, and provide enhanced access to supplier intelligence and decision support for more informed purchasing decisions. Specifically, organizations using e-Sourcing technologies have been able to:

• Identify, qualify, and negotiate with an increased number of suppliers, creating more competitive bidding environments;
• Negotiate an average of 5% to 20% unit price reductions;
• Shorten sourcing cycles by an average of 25% to 30%;
• Reduce time-to-market cycles by 10% to 15%;
• Lower process costs for sourcing engagements;
• Improve quality levels for the goods and services being sourced;
• Increase access to technology and service innovations through improved collaboration;
• Apply strategic sourcing to a broader range of products and services; and
• Promote knowledge sharing and standardization of sourcing best practices across the enterprise.

The financial implications of such benefits are significant and impressive. All told, U.S. businesses could realize approximately $690 billion in cost savings through deployment of an effective e-Sourcing strategy.

"At COMMODITY SOURCING GROUP, our e-Sourcing experts can facilitate integrating your procurement, sourcing and commodity integration services to create lower prices paid for goods and services and lower administrative costs," says Darryl R. Hart, Chairman and CEO of CSG. "Not only that, but your company increases its minority content and direct minority supplier participation when you do business with us."