e-Sourcing

Sourcing & RFx

Definition

The use of software to run sourcing events — building RFx, distributing them to suppliers, and collecting and comparing responses online.

Explanation

e-Sourcing replaces spreadsheets and email with a structured, auditable workflow. It speeds up events, standardises evaluation, and captures data that feeds future sourcing. Reverse auctions and side-by-side bid comparison are common e-sourcing features.

Example

The team runs its quarterly RFQs through an e-sourcing tool, cutting event setup from days to hours.

Related terms

E-Procurement — The use of web-based systems to manage purchasing activities electronically, from requisition to payment.
Request for x (RFx) — An umbrella term for the family of formal sourcing requests — RFI, RFQ and RFP — used to solicit information or bids from suppliers.
Reverse Auction — A live, competitive sourcing event in which pre-qualified suppliers bid the price down in real time to win the buyer's business.
Sourcing — The upstream procurement activity of finding, evaluating and selecting the suppliers a business will buy from.

Related concepts

Source-to-Pay (S2P) — The widest procurement cycle — sourcing and supplier selection on top of the operational procure-to-pay buying process.

Frequently Asked Questions

What is e-Sourcing?

The use of software to run sourcing events — building RFx, distributing them to suppliers, and collecting and comparing responses online. e-Sourcing replaces spreadsheets and email with a structured, auditable workflow. It speeds up events, standardises evaluation, and captures data that feeds future sourcing. Reverse auctions and side-by-side bid comparison are common e-sourcing features.

Can you give an example of e-Sourcing?

The team runs its quarterly RFQs through an e-sourcing tool, cutting event setup from days to hours.

Back to the procurement glossary | Procurement concepts | Contact us