The future of sourcing is uncertain in these times. The world continues to evolve into a global market place with organizations expanding its operation across geographies. Hence, when the size of businesses grows, the operations complexity also grows.
One peculiar aspect of this phenomenon that makes business leaders sweat the most is sourcing. Scale and complexity are directly proportional when it comes to sourcing.
The reasons for that are as follows:
From operationalizing automation to deriving strategic Value:
The procurement department across fortune 1000 companies are perceived as a strategic function through which an organization can achieve dollar saving rather than achieve cost avoidance. This shift has primarily happened with the advent of seasoned procurement professionals and technological breakthroughs made.
“Without strategic sourcing, we would not be able to improve cost, quality, and service levels while guarding against third-party risk.”
– SIG, 3 Sourcing and Procurement Trends for 2020
As expectations grow from the procurement function to deliver more, the process level and policy level innovations are evident. Therefore, procurement leaders continue to look at sourcing optimization as a means to generate results.
Some pressing needs of the market are-
Given the dynamic market need, technology partners are fostering the next generation of solutions to support every nuance of the sourcing process. These solutions are not just restricted to modern eSourcing tools. There are increasingly specialized tools like sourcing optimizers to support large scale sourcing tools.
· Central platform to manage the entire sourcing life cycle.
· Standalone tool works well for events to be conducted, which are strategic and medium in size. (<10,000 lanes)
· Limited Analysis capabilities restricted by time and manual process.
· Solution that works as an engine to support bid analysis and enable decision making.
· Combined with an eSourcing tool that can help scale events and create large scale events. (>60,000 lanes)
· The engine leverages structured data that automates the entire analysis process
By combining both the tools, it can unleash groundbreaking efficiencies and saving opportunities for the organization. As a result, more solutions are looking to augment existing eSourcing tools into end-to-end sourcing tools by accommodating point functionalities.
Solution vendors have identified the pressing market gap, and few pioneers have already combined technological prowess with deep process knowledge to craft the perfect solutions. Hence, the approach to identify what works for a particular organization is a simple assessment of realized value derived.
Let us dive into what value does best in breed process, and methods hold for an organization-
Thus, sourcing is entering the next age of technological advancement because of the evolutionary forces of market and board room expectations. As a result, cost-cutting and identifying sustainable saving avenues are higher.
The opportunity is for the taking for procurement organizations to get the first movers advantage; the receptive technological organization will go beyond the curve and unlock new sourcing efficiencies.