The Procurement and Sourcing applications being used in many organisations focus very strongly on sourcing of products and services related to the core business functions of the companies. This statement applies mostly to large organisations, where there...

The Procurement and Sourcing applications being used in many organisations focus very strongly on sourcing of products and services related to the core business functions of the companies. This statement applies mostly to large organisations, where there is no shortage of resources – internally or externally. However, small and medium sized organisations have the fewest number of resources available to them. This means that they have the most to gain from implementing an eSourcing Strategy and utilizing eSourcing Tools. By doing this, these companies can achieve more with less. However, because of the perception that eSourcing processes/tools are too long, complex and expensive as well as that they would require additional internal resources to implement and manage an eSourcing Strategy, these SME’s do not consider the advantages they have.

By evaluating the existing Procurement Strategy and specifically eSourcing Tools and Processes in large organisations, a scalable, modular approach to procurement – and its various building blocks – is designed to identify, examine, select and suggest procurement initiatives for sourcing products and services in small and medium-sized companies. This offers a number of benefits to an organisation, contribute to the motivation of its employees in performing mundane tasks and increase the effectiveness of team members responsible for cost saving measures.

Depending on the size of the organisation, the components may vary in number and the rules and guidelines are to be flexible to accommodate the required restrictions/limitations. The system components should be designed to allow for changes in the business requirements, organisational growth and statutory regulations.

For discussion:

How important is strategic sourcing for companies that come from financially less prosperous areas - where only part of the technology is affordable and/or accessible? How do we, as well-informed business people, become aware of the need of organisations in this situation? What would be the best – and most profitable – way to provide a bridge to close the divide? Can small businesses offer a solution, or would that be something only for the big players? What does it involve and would my contribution make a difference?

Would implementing an eSourcing Strategy, guidance and training benefit these SMEs?

Briefly describe yourself:

How important is strategic sourcing for companies that come from financially less prosperous areas?

Website: www.burgerconsulting.ch

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