As companies continually strive to deliver ever-increasing value to shareholders, they will
search out and implement new strategies, practices and tools across their organizations. In the supply chain and sourcing domains, companies are changing the way they source, produce and distribute goods or services to their customers, in search of reduced costs and greater efficiency.
Many companies have transitioned to a more centralized approach, moving from location-based to global, corporate-wide planning and execution. Cost reductions come from consolidation of sourcing events and leveraged spend, as well as the rationalization of a global supply base.
Others have embraced their supply base in search of new efficiencies and product innovation to drive continuous cost savings. However, as the scale of the sourcing event increases in size or complexity, so too does the challenge of managing such an event. More suppliers are invited to participate, submitting a greater number of proposals that must be considered. Larger, more complex supply networks are produced, creating inefficiencies in the distribution of goods, longer lead times, and additional logistical costs and risks. And sourcing events that span a broader group of stakeholders generate additional internal competition for influence over award decisions.
MANAGING COMPLEX SOURCING EVENTS
In recent years, as companies have adopted more advanced sourcing strategies, the most
innovative have also adopted advanced sourcing technologies. While still relatively
misunderstood among supply professionals, optimization-enabled sourcing solutions provide
capabilities to handle today’s real-world “complexities” found in an increasing number of global
sourcing events, which may include any or all of the following characteristics:
- the need to manage larger-scale, global sourcing events
- the need to collect diverse supplier proposals
- the need to collect and model more complex business rules and variety of stakeholder preferences
- and/or the analytical horsepower to enable business users to evaluate tens of thousands of options in mere seconds to find the optimal solutions.
This white paper will help clarify the value of optimization-enabled advanced sourcing solutions
by providing a high-level overview of the functional differences between various global sourcing
technologies, the characteristics of an advanced sourcing technology platform, and the benefits
afforded by such technologies. It will also explain how advanced sourcing technologies can
establish the framework by which companies like yours can change their sourcing strategies