Sourcing Discussion Group

Group Leader: Ray Wise

Objectives:

The eSourcing Discussion Group, including this page and the links referenced from this page, is intended to serve ISM members and others who are:

• Interested in learning more about eSourcing
• In the process of selecting an eSourcing solution
• Working to optimize use of their existing eSourcing solution

Practical Considerations:

At the core, eSourcing is sourcing. The application of technology simply enhances productivity, enables better decision-making, and introduces new capabilities to existing supplier selection and evaluation processes.

For the sourcing professional, the decision to utilize eSourcing leads to two other decisions: which technology to use and which eSourcing techniques to apply. Although the technology choices start with vendor selection, the technical capabilities (and limitations) of the eSourcing solution will also determine the techniques available for use.

Features and functionality available in eSourcing solutions vary greatly from one software provider to another, but at a minimum should include:

• RFx capability

• Reverse Auction capability

• Robust user role capability

• Multiple question types

• Automated and manual scoring capabilities

• Reporting

The utilization of internet-based applications in the sourcing process to qualify suppliers, solicit bids and evaluate proposals. These applications are often used to (a) enhance the competitive environment; (b) drive supplier responses into the format of the buyer’s choosing; (c) simplify comparison of competing offers and (d) standardize the sourcing process across an organization.

How does eSourcing Work:

While every solution vendor takes a slightly different approach, there are some basic steps that are part of the typical eSourcing process and supported by most software providers. Not surprisingly, these steps mirror the activities in a more conventional sourcing process

LEARN MORE: (under construction)

Reverse Auctions

Integration

Choosing an eSourcing Vendor

Software Providers

Advanced Features and Functionality

Hosted Solutions (Software as a Service)

Implementation Considerations

Getting the Most out of your Solution

Consulting Support

Other voices

Perspective

eSourcing and Reverse Auctions: Five years ago, a discussion about eSourcing was essentially a discussion about reverse auctions. Today, the technology has moved far beyond reverse auctions, although the debate about when to auction and how to make an auction successful rages on.

Other Voices: In addition to the ISM ESMG perspective in these pages, there are a plethora of other places to look for input and opinions about eSourcing. Here’s a partial list with some considerations:

• Analysts: Major analysts, notably Aberdeen, AMR Research, Forrester, and Gartner, provide commentary regarding eSourcing applications. In some cases, a user ID or subscription is required to access content; fees may apply.
  Aberdeen
  AMR Research
  Forrester
  Gartner

• CAPS Research: Jointly sponsored by the Institute for Supply Management (ISM) and the W.P. Carey School of Business at Arizona State University, CAPS Research publishes white papers and benchmarking studies. Typically conducted by recognized supply chain experts, much of this research is available without cost at
  www.capsresearch.org 

• Publications: In addition to print journals, there are also online resources that will deliver a periodic update to your email and often cover eSourcing and related topics these include:
  Line 56
  Purchasing

• Independent and Quasi-Independent Blogs: In recent years, a number of bloggers have begun to cover eSourcing and related topics. Many of these are completely independent while others at least accept advertising from vendors. Like any opinion (including those expressed on these pages), the reader should evaluate the qualifications and perspective of the author. Some of our favorite blogs include:
  Spend Matters

Vendor-sponsored Blogs: Some of the leading eSourcing vendors have created their own blogs to share their perspectives. For the selective and savvy reader, this perspective can be valuable…although it is very likely that it will not be without bias. Some of these include:
eSourcing Forum
Supply Excellence
Sourcing Innovation

Vendor Sites: Some vendors sponsor research, produce white papers, and provide a host of information regarding eSourcing, though this focus is sometimes skewed towards their particular products and services. Typically registration is required, and you may be subjected to periodic emails or sales calls, but the content can be high quality and well worth the commercial trade-offs. Some of these vendors sites include:
Ariba’s Learning Center