Strategic Sourcing Procurement Professionals Public Sector Benefits of Outsourcing

Procurex Technology

Procurex Technology is a platform to streamline the sourcing process and ensure that the buyer obtains the best value and that the best-fit supplier gets the award. The system was designed by purchasing professionals and has all the tools and capabilities to conduct e-sourcing events. Strategic sourcing, and particularly reverse auctions, requires a high level of procurement expertise. Procurex has developed a powerful tool to support the expert strategic sourcing professional. It includes all the tools needed for strategic sourcing and yet it is highly intuitive, easy-to-use, allows for fast implementation, is completely web-based, and so versatile that virtually any kind of purchase can be done on it.

Supplier database: This capability allows buyers to create a custom supplier list. Once a supplier registers on Procurex, the buyer can create a “My Supplier List” to enable efficient information gathering and competitive bid events. Suppliers can register as many seller users as they wish, allowing the buyer to directly communicate with their particular sales representative.

e-RFI: Electronic request for information. The system uses a powerful tool to build supplier e-surveys and invite suppliers to fill out the information. This allows for efficient, fast gathering of key supplier information. Any type of question can be asked with multiple response types to choose. This efficient information gathering method supports strategic sourcing by allowing for the inclusion of both price and non-price data in award decisions. Key qualifications, capabilities, capacity, quality certifications, credentials, experience, and value-add are typical uses of the e-RFI tool.

e-RFQ/P: Electronic request for quotation or proposal. This tool allows the buyer to upload purchase specifications and competitive bid documents for suppliers to download. Suppliers then review the documents in order to provide a quotation or proposal in response. The e-RFQ/P tool allows for buyers to request price quotations from many companies very quickly, without the cost and paperwork that would normally be required.

Reverse Auction: Reverse auctions are one of the most powerful tools that a buyer has to ensure fair competition and to achieve the best available price. Reverse auctions can be used in any situation where clear specifications exist and suppliers are or can be pre-qualified. Often used in conjunction with the e-RFI survey, reverse auctions are a best practice in strategic sourcing. Reverse auctions are a dynamic, real-time negotiation between a purchasing organization and several pre-qualified suppliers competing against one another to win the opportunity to supply goods or services to the purchasing organization. A typical reverse auction bid event will be completed in less than an hour and often produces savings of between 5 and 25 percent.
At the end of the event, the lowest qualified bid wins the auction.

Procurex Technology can help buyers extend their reach to a broader, global market by conducting competitive bidding in an online environment. Considering that purchasing in a majority of companies comprises the largest portion of annual spend, even a small additional percentage saved in a reverse auction event can mean a much greater impact on the company.

Learn more about the benefits of Procurex Technology.

 

 

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