Successful Sourcing

“It’s hard to find suppliers to provide quotations for us, so we usually ask the same suppliers. However, if we reject the same one too many times, they no longer want to provide quotations for us!”

We’ve heard this story so many times that we have coined the term “Quotation Fatigue” to describe this phenomenon. Yet, the underlying cause of this problem is simple – to ensure compliance with company policy, purchasers are always asked to get the magical “3 quotations.” When two suppliers are constantly invited to participate just to make up the numbers, it is no surprise that they eventually decide not to spare the effort.

So how do we practice successful sourcing? 

Principles of Successful Sourcing

There are 3 key principles to ensure your sourcing processes are successful.

  1. Competition

The “3 quotations” policy has an underlying principle in successful sourcing – competition is necessary to ensure that you can procure the goods or services at market rate.

However, finding quotes to “make the numbers”, as this practice has often become, is not successful sourcing – it is not the number of quotations received that ultimately defines competition, but rather the number of eligible suppliers who are able to participate (regardless of whether they choose to or not).

  1. Relationships

Another way of framing this is respect. To build relationships with suppliers, we have to respect the effort they put into preparing a quotation for your purchase.

Suppliers understand that they can’t win every deal – but they want to know that they were given a fair shot. Giving them sufficient time, answering their queries promptly and evaluating their proposals seriously are ways to let suppliers know that you’re a buyer that they would want to work with regularly.

  1. Transparency

A transparent sourcing process helps to earn trust from suppliers and also ensure compliance with corporate governance.

Being transparent includes ensuring that any relevant information shared with one supplier is also shared with others and updating suppliers when the purchase evaluation has been completed.

Let TenderBoard Help!

TenderBoard’s eProcurement platform and B2B marketplace provides you with the tools to ensure that you can source successfully.

  • Versatile sourcing mechanisms

    Your tenders can be as open or closed as you need them to be – choose to limit deals to pre-qualified suppliers, select from TenderBoard’s database of 50,000 suppliers, or anything in between.

  • Supplier management tools

    TenderBoard’s supplier management tools keeps you in control of your upplier relationships – Maintain your approved supplier list, blacklist errant suppliers, monitor supplier invitations and manage clarifications and submissions easily through the TenderBoard platform.

  • Automatic audit trail

    All actions performed by buyers or suppliers are captured on the TenderBoard platform, helping you keep track of your communication and ensure that purchases can be properly accounted for later.

 

Come speak with us today to find out how we can help you to source successfully! To see our platform and learn more about our solutions, visit our website at www.tenderboard.biz

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