Multi-sourcing suppliers using an eProcurement system

Multi-sourcing suppliers using an eProcurement system

22nd June 2016

We’ve all received the emails pestering us to buy products from an unknown source, with no way of really knowing how authentic the business promoting itself is. Finding a supplier is often not the challenge, instead, the difficulty occurs when finding the one that best suits your needs and requirements.

Regardless of where you sit in the supply chain, delving through a supplier network can be a minefield, whether you are looking for raw materials, a manufacturer to create physical products, a web platform for a website, or simply looking for the best distributor of a well-known brand.

Organisations across the world spend billions of pounds sourcing the best new suppliers for their business, irrespective of whether they are a contractor, wholesaler, distributor or manufacturer.

Starting out with eProcurement.

Conventionally, we often think of visiting trade shows, sales rep visits and networking as the primary ways to source suppliers. Whilst these techniques are undoubtedly still effective, the relatively new phenomenon of eProcurement is historically, not something everyone has access to – often expensive to implement both in monetary value and training times.

As a free-to-use tool, Applegate PRO breaks this trend, and for many provides a first look at eProcurement. By providing access to a compressive supplier network in conjunction with an eProcurement system - Applegate Marketplace and Applegate PRO, users can raise quotations for a product or service and in turn, source multiple suppliers.

With just one request for quotation (RFQ), the eProcurement system will source up to ten suppliers within a matter of hours. Companies are vetted and thoroughly checked before becoming a member, ensuring trust and confidence in their business. Using this technique is believed to be one of the most simple, yet effective, ways to multi-source suppliers.

Finding trusted manufacturers.

As the organisation that provides the product that the penultimate sections of the supply chain actively look to sell, the manufacturer holds the most significant responsibility to source its suppliers in an effective way.

Ensuring the later stages of the supply chain can have confidence and trust in what they’re selling while looking to make their own margins. Without this, the implications for a business, especially a new start-up, on its customers and the crucial fostering of trust between these two parties cannot be built.

Preventing supply chain issues.

For new businesses, the ramifications of choosing incorrectly can be significantly higher, however, they are not the only organisations reliant on making the correct decision and having foresight.

The earthquake in Japan in 2011, that disrupted the global supply chain of some of the world’s most prominent firms, is a prime example of why even the biggest of organisations can sometimes become subject to monopolistic supply.

As the world’s third-largest economy, Japan is a vital supplier of electronics, computing and automotive industries. At the time, it accounted for 60 percent of the world’s supply of silicon wafers and, without knowledge, a large proportion of that industry were subject to a single supplier of the sub-components for this item. When the earthquake hit, it destroyed their single source of supply, costing millions of pounds.

Theses anomalies are few and far between, a much more regular occurrence is the scenario that your supplier is out of stock of an item you supply and you are unsure where to source it. Time, in this scenario, is a vital component. With the production, where, for example, Japanese factories, can produce two personal computers a second, if a supplier cannot be found almost immediately, the cost can be colossal.

Procurement practices to consider

Procurement professionals in the UK must source at least five quotations before making a purchase, sourced quickly and efficiently, while obtaining the best value.

Applegate PRO was developed to adhere to the best practices in procurement. The free-to-use online buying tool provides you with access an eProcurement system that can source up to ten suppliers for a product or service within a matter of hours. Trial it today to find the supplier you need within a matter of hours!