Intesource, Inc. was founded in 1999 by a group of former grocery executives who set out to create an online sourcing tool.  Today, they are owned by PROACTIS from Wetherby, U.K. and based out of Phoenix, AZ.

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Intesource specializes in eSourcing and, in particular, reverse auctions and sourcing events.  They offer a comprehensive package of eSourcing management solutions. The eSourcing Event Services offered by Intesource include:

  • IntesourceSourcing Strategy
  • Sourcing Event Build & Execution
  • Supplier Certification Services
  • Supplier Performance Scorecards
  • Specification Optimization
  • Sample Facilitation
  • Test & QA Provisions
  • Award/Non-Award Notification

“We offer a full-service, all-inclusive approach to staging reverse auctions,” said Len Kaplan, Vice President of Sales at Intesource.  Mr. Kaplan stressed that your business doesn’t need to be as large as Walmart or Target to benefit from the eSourcing process.  He suggested that a reverse auction company such as Intesource can connect a small retailer with a large retailer offering both organizations greater buying power.  “It’s a great benefit for the small retailer who otherwise wouldn’t have the leverage,” said Mr. Kaplan.

eSourcing Events and Participants

According to Brian Miller, Vice President of Services, Intesource sets up almost all of the eSourcing events for their clients.  This allows for the clients to spend more time concentrating on the eSourcing events themselves as opposed to involving in-house technology professionals to configure a 3rd party service.

The eSourcing tool includes and administration piece which allows the client to then expand the scope of the eSourcing event.  In this administration area, there is the opportunity to select from over 25,000 active vendors plus the option to choose from the Dunn & Bradstreet directory (which includes more than 80 million businesses) using/filtering by their Paydex codes and selecting by Standard Industrial Classification (SIC) codes.

Intesource eSourcing events are created to make sure that suppliers are unable to provide quotes unless they answer specific event questions ahead of time.  Thus, suppliers who make large promises with the potential to under deliver are weeded out before participating in a sourcing event.

Bids for an eSourcing event can be done by Excel spreadsheets and in bulk.  Fields are mapped so suppliers can bid on certain items and leave other fields blank.

2 Minute Warning

During our demo, Mr. Miller suggested 95% of bids usually occur in the final 2 minutes of an event, which in turn can add x amount of time to the event depending on the client’s settings.  Typically for each bid that comes in during the final 2 minutes, another 2 minutes are added to the clock.  After an auction ends, the buyer can choose any bid – not just the lowest.

According to Mr. Miller, Intesource eSourcing is built in-house on a Microsoft platform.  One advantage Intesource boasts over their competition is their flexibility to customize their eSourcing events to meet the requirements and often times specific categories that are not always considered sourceable items or events.

Mr. Kaplan, further stated, “Based on our experience, sourcing tens of thousands of events across more than 500 categories, our clients realize savings exceeding 18 percent and achieve full ROI within a few sourcing events.”  Intesource offers eSourcing events for purchase as a bundle of events or unlimited events depending on the client’s preferences.

Clients

Among their clients Intesource counts Wegmans, Rite Aid, Harris-Teeter and Meijer.  The sweet spot for Intesource tends to points towards the grocery, retail and restaurant industries.  Intesource offers onsite and offsite training for their clients.

For more information on Intesource and their suite of eSourcing solutions visit: http://www.intesource.com or call (800) 475-2149.

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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