The Why, What & How of Strategic Sourcing: Part 2 – Driving Forces
In the second part, we will delve upon the factors driving the need for sourcing automation. To read part of this blog series, click here.
The top pressure that organizations have been continually facing is the corporate mandate to reduce cost and increase savings. As pointed out by the Aberdeen study, in 2011 60% agreed to cost reduction and increased savings being the biggest challenge. This sentiment was further echoed by 69% in 2012 and 72% in 2013.
The other driving forces for automation in strategic sourcing are;
- Need for better category management strategies
- Rising sourcing risk due to supplier performance, fluctuating currency rates, supply chain disruption etc.
- Increasing complexity in supply chain due to outsourcing, globalization etc.
- Legal obligations to make the supply chain transparent
- Need for better visibility into sourcing-related data
In our next blog, we will talk about the common hurdles in achieving smooth eSourcing process.
To read further, click on the download below to access the whitepaper, The Why, What and How of Strategic Sourcing.