Also, they allow buyers to take into consideration all of the factors that go into a purchasing decision, not just price. By taking the steps necessary to formulate a negotiation strategy, a company will realize that only 10-15 percent of its spend can be negotiated based solely on price. Therefore more than 85 percent of its spend is inappropriate for negotiating through a reverse auction. Buyers need sourcing solutions that allow multi-variable RFQs and flexible negotiation formats to support analytical decisions. B2eMarkets provides a solution to drive those transactions by institutionalizing corporate sourcing best practices throughout the enterprise to achieve sustainable bottom-line savings across the full range of corporate spend.
Studies show that sourcing cycles provide the greatest opportunity for procurement savings.
While reducing inventory, cutting operation costs and enforcing contracts produce savings, strategic sourcing creates dramatic improvements in enterprise processes, efficiencies, and on their bottom line.