4 Replies Latest reply on Jan 3, 2011 4:00 AM by sanjay Bawa

    How do you define or measure eSourcing success?

    Andrew Gill Master


      We're talking about metrics or targets in the office right now.

      How do you define and measure eSourcing (eRFx and eAuction rather than P2P)?

      Is it an event count?
      Is it percentage of addressable / spend under management?




      Andrew Gill | Global eSourcing Manager | Reed Elsevier


        • Re: How do you define or measure eSourcing success?
          Sam Barbouche Newbie

          Great question and not an easy one to answer!


          Every company / customer I have worked with have defined different goals and objectives with their esourcing solution: some will want to only run a limited number of eauctions but achieve big savings (say 15%), others will run eRFx’s for every purchase that is carried out over a certain amount, others will set themselves a goal of identifying new suppliers in a specific region and favour the use of RFIs, etc.


          Clearly at the end of the day, success should be defined at an early stage: What do we want to achieve? And success is then measured after a period of time: did we achieve what we said we would?



          • Re: How do you define or measure eSourcing success?
            Nima Bagheri Journeyman

            How is your team/operating division being measured? From my experience every organization has a different set of standards; however, one common theme is that their goals align with corporate business objectives.

            • Re: How do you define or measure eSourcing success?
              Rajender Agnihotri Novice

              Hey Andrews,


              As you must be aware ,its always good to have the metrics defined and approved from the top management while you go for the eSourcing for your organisation.

              It also depends on the industry to have success as :

              % savings ,

              long term contracts,

              more spend visibility,

              new supplier identification and suppliers participation in the event,

              spend under management (Indirect spend),

              simplification of the sourcing process (less time, less man hours on negotiation, better data management),

              yearly or quarterly review process can be made more simpler,

              Tracking can be done as a dashboard to the top management etc..


              Keen to know the output of your activity.


              Best Regards,

              Rajender Agnihotri


                • Re: How do you define or measure eSourcing success?
                  sanjay Bawa Novice

                  Related KPI`s to measure adoption and success



                  User Related
                  # of Active Suppliers
                  # of registered Supplier
                  # of registered Buyers
                  # of trained users
                  # active users
                  Project Related
                  # of new projects per month
                  # of projects (cumulative)
                  # of Sourcing Projects per month
                  # of events per month per Type
                  Spend Related
                  # of Categories Sourced
                  Spend volume processed per month
                  Spend volume cumulative
                  Process Related
                  # of Sourcing Process Templates
                  # of custom RFx Templates
                  # of category specific items (cost breakdown templates)