Procurement transformation is an important new focus area for supply chain-driven companies, in which efforts are afoot to concentrate and realign resources on procurement process excellence.
Many of today’s more advanced sourcing solutions can help you drive five critical procurement transformation initiatives.
- Spend aggregation. Across business units, geographically, or across overlapping supply bases, companies can use advanced e-sourcing to aggregate spends and manage larger data sets, toward the goals of increased savings, maximised buying power and improved efficiencies.
- Supplier collaboration and innovation. Collecting and analysing not just price, but also non-price, supplier data can be aided with e-sourcing technology to make a best-value sourcing decision for your business.
- Stakeholder and business alignment. For real business value, the analytics must be powerful. Advanced e-sourcing allows all stakeholder preferences and business goals to be evaluated for cost/benefit impacts.
- Staff efficiencies and innovation. Cycle times can be reduced by 30-60 per cent with advanced e-sourcing, because teams let the powerful technology do the data crunching that is so often done manually with spreadsheets. Improved efficiency leaves more time for strategy.
- Spend under management. Getting more spend strategically sourced should be a key goal, and finding the right sourcing tool to build stakeholder confidence is crucial.
☛ Richard Wilson is CEO of e-sourcing company CombineNet