Many purchasing organizations have one specific role in regards to the contract to buy process – To offer the ability for the remainder of the organization to buy services and products at the best possible price while still maintaining fiscal controls and accountability. Many of these departments have to achieve this goal with solid and resources structured processes. Because these buying groups work to push down costs, they need the appropriate tools to support the dwindling resources they have in their departments.

E-sourcing applications that streamline these manual procedures to allow easier facilitation and management of contracts procedures will go a long way in creating these classes more efficient. Rather than using the normal paper form and faxing technique, these teams are now able to create online quotes and bids which could readily be distributed to multiple providers at the same time. After these sourcing events are pushed out electronically, the purchaser can handle the development of each seller throughout the procedure. This in turn, allows more events to occur and can consist of a lot more providers in the procurement process to get better pricing. With the advances in online technology, online bidding tools are now becoming more accepted and used to replace the old bid in the email procedure. With resources that allow bidding entities to review and post their bids on the internet, the providers who subscribe to those services are currently allowing a more competitive landscape with respect to bid opportunities.

Due to the amount of effort being expended in the old paper based environment, the purchaser was just able to afford a few events to a minimum number of providers. This does not necessarily provide the best price variances needed to make sure the organization has been diligent enough in their aims to obtain the lowest cost. If you have an Internet bidding Application to handle your sourcing and contract process, it will become a pure pipeline of buying contracts to your e-procurement processes. When these contracts are given, your procurement tools currently present these contracts in an internet portal to make it easier for your end users to leverage those contracts in their ordering process. In Conclusion, purchasing managers and their various buyers should be taking a look at e-sourcing software to broaden the internet when conducting their contract procedures. With an internet solution the ROI of transferring the sourcing process from newspaper could be measured in less than a year.