1. Large savings and market transparency
Due to variations in the standards of paper quality amongst suppliers, the market prices were quite different and therefore difficult to compare. The eRFx gave Jeppe K. Pedersen the opportunity to evaluate the suppliers on qualitative criteria as well as price, which resulted in transformed prices that were a lot more comparable than the initial market prices.
“When conducting an eRFx followed by an eAuction we found we were able to get a comparable price level, which made it much easier for us to weight the suppliers against each other. There is no doubt that not only has eSourcing helped us to select the best suppliers, it has also resulted in significant savings and better market transparency. When you take a look at the overall result, I can say for sure that I would never have obtained savings as large as these in a traditional face-to-face negotiation”
2. Economize your time with eSourcing
Jeppe K. Pedersen also explains that his workload was significantly reduced when utilizing the Scanmarket platform. “Using eSourcing places the responsibility for responding with the suppliers. They need to provide you with all relevant information and prices and the system takes care of the rest! It made it easy for me to analyse the final prices from a methodically selected number of suppliers. If I had conducted the sourcing process as a traditional face-to-face negotiation, I would have spent at least 3 months on the whole process. With the Scanmarket platform I have managed to complete the same process in less than 3 weeks! So there is no doubt that such significant time savings creates a heavy argument for me to use eSourcing.”
“Scanmarket is a great tool to keep track of information because you have everything gathered in one place”
3. eSourcing vs. traditional face-to-face negotiation
The goal of the eRFx and eAuction was to select and prequalify a selected range of suppliers that as a final third step, would be invited to participate in a traditional face-to-face negotiation. Thanks to the eSourcing process, Jeppe K. Pedersen has an exclusive selection of suppliers and very keen competitive pricing.
“If I compare the Scanmarket online process with a traditional face-to-face negotiation, it would have been very hard for me to convince the supplier to come down to the low price level I obtained in the eAuction. At this point the eAuction has provided me with a list of very competitive prices which will be beneficial for us when we conduct the final negotiations.”