How Can Sourcing Be Improved?

Sourcing is a vital piece of procurement and the overall supply chain itself. However, just about anything can be improved upon, and sourcing optimization and optimized operations can help streamline the process. eSourcing (sourcing digitally) is a clear choice to improve sourcing, and eSourcing software with features such as a bid optimization platform can improve your overall sourcing significantly, which is important to the supply chain.

Read on to learn more about how to optimize the procurement process and how to improve upon sourcing.

Sourcing Optimization: Have a Sourcing Calendar or Pipeline

Having the right type of eSourcing software is imperative for sourcing optimization. Suites with robust features, such as an advanced sourcing optimizer, can help you navigate sourcing a little better. One of the features that should be integrated in your eSourcing software is an intake or pipeline capability with a calendar view function.

Here, you can view a sourcing calendar of upcoming sourcing events so you can manage your team and ensure you have enough resources to manage everything that is upcoming. Also, having a calendar gives you ample time to make adjustments if you don’t have enough resources to complete everything as requested by your stakeholders.

Sourcing Optimization: Host a Sourcing Event and Invite Suppliers

You may be quite comfortable with your strategic suppliers and suppliers, but not being open to other options may backfire. If you host a sourcing event and invite suppliers, it opens you up to potentially better suppliers for your needs. Software also comes into play in this aspect of sourcing optimization. Before you invite suppliers, make sure your cloud software has a database and search feature that allows you to match with potential suppliers.

A sourcing event will either validate that your current supplier(s) are meeting your needs or that there are other suppliers out there who are a better fit.

Sourcing Optimization: Run eAuctions Wisely

Once you get the hang of running an eAuction, you can further perform sourcing optimization. If you’re wondering how to optimize operational cost, running an eAuction with care is quite important to operation optimization. Consider these tips as you plan your next eAuction:

  • Limit the number of items (for most types of eAuctions, but particularly reverse auctions)
  • Too many items can put off suppliers or overwhelm them and distract them from focusing on the items that matter most.
  • Run a mock auction before the real thing so everyone is comfortable

Suppliers can also be a little wary of eAuctions, particularly reverse auctions. Having a mock auction helps them feel comfortable as well, so when you host the real thing, everyone is used to the format.

Sourcing Optimization: eSourcing Software Features to Look For

As you think about your eSourcing software, it’s wise to ensure your software has the features you need to ensure everything runs smoothly. Your eSourcing software should have the following features:

  • Spend analytics
  • Scenario analysis tool
  • Supplier discovery
  • Market intelligence
  • Sourcing planner
  • RFP Scoring

If your platform isn’t working for you as it could, search for procurement and sourcing software that better fits your needs.Image of a bullseye on a dart board for an article about How Can Sourcing be Improved?

For more information on sourcing optimization or to schedule a demo, contact EC Sourcing, a Simfoni Company through our web form located here. We want you to reimagine the way you think about procurement.