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| It is the use of technology in a strategic sourcing process so that buyers can reduce cost, manage supplier risks and hike profitability. |
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| How it is different from a traditional buying process? |
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| First, e-sourcing is a more strategic purchasing process. A buyer deals with a number of new suppliers and has to decide on their credibility before awarding the contract. Similarly, he has to decide on new cost or pricing structures. |
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| Second, it involves the use of technology. In a normal buying process the negotiations take place face to face, but in e-sourcing one uses technology in the entire process, from sending requests for quotations (RFQs), requests for information (RFIs) to the final online auction. |
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| Third, the buyer typically tries to manage risks by taking more external factors into account than in a normal buying process. |
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| How is e-sourcing different from e-procurement? |
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E-procurement is more transactional and deals primarily with the processing part of purchasing
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