Optimizing Sourcing for Success in the Solar EPC Industry

In the competitive Solar EPC business landscape, profitable sourcing has emerged as a critical element for success. While a plethora of parts and systems, from structures, cables, PV modules, and batteries to transformers and control panels, are available from a multitude of suppliers, standardizing these components remains a challenge. Many items, such as fasteners, clamps, and others, can be sourced from a variety of manufacturers both locally and internationally. Consequently, the pivotal challenge for EPC enterprises, regardless of size, is to procure BOM materials cost-effectively and expedite the sourcing cycle time.

With raw material prices witnessing considerable fluctuations, buyers often grapple with the task of effective negotiation to secure favorable prices. One of our clients, an eminent provider of rooftop and and on-grid solar plants ranging from 5Kv to 1 MW, realized that their procurement team was excessively burdened with sourcing process & supplier negotiations, which prolonged their operational timelines. This led them to adopt eSupplier.com's eSourcing tool, streamlining their entire sourcing cycle – from initial RFQs to final Negotiations, all managed seamlessly from a unified dashboard.

The initial phase involved creating a comprehensive RFQ, ensuring detailed specifications, and subsequently inviting existing suppliers to submit their quotations. eSupplier's platform also facilitated the discovery of new potential suppliers, adding an extra layer of flexibility.

Upon receiving the quotes, the system offered a simplified comparison mechanism. This allowed the buyer to simultaneously evaluate the quotations and specifications, subsequently identifying the suppliers fit for negotiation.

The final step encompassed setting up a Reverse eAuction event. Suppliers who had presented their initial bids during the RFQ phase were invited to participate. Engaging in this event, suppliers aimed to provide their most competitive prices to secure the order and maintain their status as the preferred supplier (L1 Supplier)). This auction mechanism not only conserved the buyers' time and efforts but also fostered a healthy competitive environment among suppliers, enabling the swift identification of market-competitive prices with minimal exertion. The process proved advantageous for both buyers and suppliers, eliminating the need for protracted telephonic or personal negotiations.

Embracing this optimized approach, the company managed to divert its valuable human resources towards more strategic endeavors. This resulted in securing more business opportunities and punctual project completions due to reduced sourcing cycle times. The outcome? A noteworthy doubling of their annual business volume and an impressive 10% surge in operating profits.