eSourcing online negotiation tools
eSourcing online negotiation tools are commonly used in today's business environment and for complex negotiations that include discussion of product and service features. The time constraints and complexities require the use of tools that streamline this negotiation process and assist purchasing managers’ decision-making. With the advent of Internet-based technologies, it has enabled the procurement professional to have access to tools which enable low cost, seamless, on-line dialogs between buying enterprises and their suppliers, wherever they are located.
Consequently, several commercial systems to support on-line negotiations (eSourcing tools) have been released. Many of these tools offer analytic features to help determine low cost award options and exception bids such as outliers. In addition some products offer decision support capabilities. This allows the sourcing manager to create various award scenarios, with complex factors. The results show the economics behind the award alternatives, allowing the organisation to quantify their decisions. 
Procurra’s eSourcing Tools and Services
Most negotiations are structured in the same way:
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You define your needs (product/service specifications, current prices, forecasted buying volumes, etc.)
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You set the conditions of a competitive negotiation by sourcing a maximum number of suppliers able to produce the required goods or services
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You organise a tender and invite your suppliers to respond to a questionnaire and submit price offers
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You complete this selection process by negotiating on prices and services with each qualified supplier
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You contract with your selected supplier
Procurra proposes you to optimize your buying process by using our online negotiation suite complemented with our professional services:
Online negotiations vs. traditional negotiations?
The adoption of online negotiation tools offers several advantages:
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Greater transparency within the buying process
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Methodical approach applied by all buyers of your organisation
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Supply base optimisation
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Products and services quality improvement
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A repository for all your negotiations, allowing you to adopt a supple allocation of your resources without disrupting your business
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Significant savings which can directly benefit your bottom line
Why is eSourcing so effective?
Cost reduction becomes a priority for many organizations as trading becomes more competitive. There are several ways of reducing your company costs, but the easiest one is by far, to act upon your purchased spend.
An example:
Company turnover: 100
Company net profit: 10
Company overheads: 20
Total spend: 50
eSourcing savings: 10% of spend = 5
A 10% reduction in purchase costs can result in a 50% increase in profit margin
To achieve the same result, you could have to:
Increase sales by 50%
Reduce overheads by 25%
Restructure your company resources
Would you like to know more?
To get in touch with a Procurra consultant please click here, this is purely informational, no obligations required. Do you want know more about Procurra pricing, please click here for more details. Registered members of Buyers Meeting Point will get a 10% rebate bonus on their first order.
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