Today, procurement professionals are no strangers to using eSourcing to reduce costs and improve efficiency. A recent survey of 200 procurement experts found that 68% have already benefited from eSourcing modules.

Research into all eProcurement modules by Wax Digital shows that eSourcing is widely adopted because it can transform manual, cumbersome procurement processes. However, if you are still spending time learning the system or justifying the business case, it’s important to understand the added value eSourcing provides to organizations.

One-third of respondents reported that their primary reason for adopting eSourcing was to eliminate paper-based, manual processes and the overhead costs associated with negotiating with suppliers. Compliance with supplier requirements was also crucial for 60% of respondents. eSourcing ensures that suppliers meet strict criteria, such as health and safety standards, at the start of the eTendering process. Ultimately, only about half of respondents can negotiate pricing with suppliers to establish consistent processes for cost reduction across all spend categories—a key consideration.

In more detailed findings, among current eSourcing users, 49% reported significant progress in using eTenders, while 38% regularly use eAuctions to create a competitive supplier environment across various spend categories.

Despite this progress, estimates show that 82% of procurement professionals can save an average of £38 for every £10 invested in eSourcing software.

Respondents also shared valuable insights on successfully implementing eSourcing:

• Gaining buy-in from senior teams is crucial to ensure that the technology is accepted across the organization.

• Collaborating with users outside the procurement department, as well as suppliers, ensures the process works effectively for all key stakeholders.

• Communicating your eSourcing plan to suppliers is essential, as some may already be ready to use the software while others may require more guidance during the initial rollout.

• Prioritizing user training is the most effective way for users to recognize the benefits of moving to electronic sourcing.

• Clearly defining the expected benefits of eSourcing is vital. Mapping these goals allows you to report back to the business on when success will be achieved.

Finally, respondents emphasized that implementing eSourcing should be a gradual, continuous process. Whether you are building a business case or maximizing strategic sourcing, understanding how it can support broader business goals and improve supplier performance and compliance will help ensure you achieve the maximum return on your software investment.