Meeting the Demand in Sourcing and Procurement
In recent years, considerable efforts have been made to simplify and streamline sourcing, procurement, and overall supply chains to meet demand more effectively. Before dedicated eSourcing and eProcurement software, companies struggled to meet modern business needs with manual processes, paper trails, and endless spreadsheets. . Sourcing optimization software not only helps with strategic sourcing but also with meeting the high demands of both speed and transparency in procurement. Read on to learn more about sourcing and procurement optimization, available technology, and how to comply with ethical standards while meeting today’s business expectations.
Sourcing and Procurement Optimization: Speed and Transparency
The procurement process flow hasn’t always been speedy, nor clear. Procurement optimization software has helped expedite the eSourcing and procurement processes through sourcing automation and other factors, while making sourcing more transparent over time.
In the past, businesses have been reluctant to make their supply chain too transparent, as this could reveal sensitive company information and objectives. However, according to a study conducted by the MIT Sloan School of Management, consumers reported they would pay 2 to 10 percent higher prices from companies with transparent supply chains. Putting aside proprietary information, companies are willing to pay more to know more. Understanding the supply chain and potential issues that may arise in the future is worth the additional cost.
Transparency in the procurement process helps both buyers and sellers. eAuction software helps with sourcing optimization and offers transparency to your suppliers, leading to greater efficiency and the ability to meet demand while fostering better relationships with strategic suppliers.
Sourcing and Procurement Optimization: Available Technology
For sourcing and procurement optimization, different types of software are available. Specifically for eSourcing software, you want to employ the best available software with the shortest learning curve. Software should be intuitive and easy to use, not just for you and your team, but also for your suppliers. Generally speaking, sourcing and procurement optimization software should include:
- Supplier pre-qualification and onboarding
- Contract management
- RFx and eAuction management
- Supplier performance analysis
- Savings tracking and analytics
When it comes to procurement software specifically, you want to ensure you have robust features such as:
- Real-time communication and collaboration tools
- Policy compliance
- Automation tools
- Budget insights and control features
- Risk management
- Supplier management
- Approval workflows
Depending on your particular needs for sourcing and procurement optimization, you may want additional features or innovative new technologies, such as FlexRFP.
Sourcing and Procurement Optimization: Meeting Compliance and Ethical Standards
Meeting demand is unequivocally important, however, it should never come at the expense of noncompliance or falling short of ethical standards. Compliance features should have a place in your sourcing and procurement optimization software, but it runs deeper than that.
Before dealing with new suppliers, research the company. In recent years, even well-known and trusted companies have been caught illegally sourcing and causing a negative environmental impact, using child labor, or taking bribes. It can tarnish your reputation by association, so avoid these companies. Also, try to steer clear of pitfalls from suppliers, such as unexpected gifts, coercion, bribes, and other practices that violate ethics and morals. The right software helps you dodge these issues.
To learn more about intuitive, easy-to-use sourcing and procurement optimization software that meets all your procurement needs, speak to a Simfoni representative today about conducting a demo.