E-Sourcing in Logistics: Digital support for strategic purchasing, from the request through the tender and the comparison of quotes to the award.
E-sourcing is the digital part of strategic purchasing. Instead of sending requests by email and collecting quotes from different spreadsheets, the path from the request to the award runs through one system. In freight procurement, this means: shipments are tendered digitally, forwarders bid in a fixed structure, and the quotes can be compared instantly.
The steps in e-sourcing
| Step | Content | in freight procurement |
|---|---|---|
| Clarify the requirement | What is needed, when and in what quantity? | Lanes, volumes, modes of transport |
| Find suppliers | Who is eligible? | Select and invite forwarders |
| Requests (RFI, RFQ, RFP) | Obtain information and prices | Spot tendering or freight tender |
| Compare | Put quotes side by side | Compare rate sheets and bids |
| Award | Place the award, document the result | Award per lane, rejections to the other bidders |
E-sourcing and e-procurement
The two terms are often confused. E-sourcing ends with the award: the supplier is selected, the prices are fixed. E-procurement begins afterwards and covers ordering, delivery and invoicing. In transport, this second part is often handled by a TMS.
What e-sourcing brings to freight procurement
- Comparability: All bidders respond in the same structure.
- Time: Merging quotes from emails and spreadsheets is no longer necessary.
- Traceability: Every request, every quote and every decision is documented.
- More competition: Because a tender takes less effort, more forwarders are asked and prices are obtained more often.
E-sourcing with eFrexx
eFrexx is e-sourcing for transport. In their own portal, shippers tender shipments as spot tenders or in a tender and make the bid structure mandatory. eFrexx instantly shows all bids side by side, handles communication with the bidders and fully documents every tender.
Frequently asked questions
What is the difference between e-sourcing and e-procurement?
E-sourcing concerns the selection of suppliers and the agreement of prices. E-procurement concerns the ongoing handling afterwards, that is, ordering, delivery and invoicing. In freight procurement, the tender is e-sourcing, while order handling in the TMS is more like e-procurement.
What do RFI, RFQ and RFP mean?
Request for Information: obtaining information about possible suppliers. Request for Quotation: asking for prices for a clearly described service. Request for Proposal: asking for proposed solutions including a price when the service is not yet precisely defined.
Is e-sourcing worthwhile for smaller purchasing volumes too?
Yes, as soon as several quotes are obtained regularly. The biggest gain usually lies in quotes arriving in a comparable form and in no longer having to retype them from emails and spreadsheets.