During the past decades the focus has moved from improving sales to developing purchasing as well. In the first phase the emphasis was on centralizing buying and combining volumes. In the second phase, companies started to use electronic tools, at this point eAuctions.

As the first eAuction tools were complex and needed a lot of training on the part of both buyers and suppliers, the most common way to start eSourcing was to have a centralized Auction Manager unit that served all the buyers. As the technology improved and the level of knowledge has increased, it has become possible to benefit more widely from the effectiveness of eSourcing.

Now advanced buying organizations and eSourcing tools have made it possible for each buyer to use the eRFx and eAuctions on a daily basis. Any buyer can easily set up an eSourcing event when there is the need for organized purchasing or when potential savings can be achieved.

eSourcing can be devided into two phases: eRFx (electronic request for information/proposal/quotation) and eAuctions. Using the eRFx helps companies to organize and systemize the buying procedures, store the purchasing data into one place and interact with suppliers.

Most often just using eRFx helps to create savings through organized buying procedures. Companies that use eAuctions can get even more savings and also the return on investment in eSourcing is higher.

Using eAuctions enables companies to conduct thorough sourcing projects, take into account non-price elements, increase transparency, comparability and efficiency, give all the qualified suppliers an equal opportunity to participate and achieve the best market price.