Module: Optimization

Optimization

The world does not stop for any single event or any individual person, and neither should your sourcing team. You may approach procurement optimization the same way today as you have for the past several years, but that does not mean it is the best way. What if award optimization could be easier and faster?

What if key decision-makers from procurement, finance, and operations can take 60 minutes to run 15-25 scenarios remotely in a Zoom meeting to find one award scenario that all parties find optimal?

 

How to Optimize the Procurement Process and eSourcing

There are multiple software options for teams to utilize different modeling techniques. Often, this is a very manual process performed iteratively using Excel with the potential for human error and inefficiencies. Procurement optimization removes the time and the guesswork in the bidding and award process.

Any reduction in time spent is also a reduction in cost. What if you could find out in one minute that adding one more supplier to an award saves three percent? Or alternatively, that removing one supplier or giving 20 percent more percent to a trusted supplier costs only 0.25 percent more? With bid optimization, you can accomplish this easily.

Not only can you find the optimal award faster with the proper modules within EC Soucing software, but you can also ensure you’ve optimized operations for your company. What might have been several back-and-forth meetings before can now be completed in one or two meetings? Achieving buy-in from stakeholders—mainly finance and operations—should be easier because the chosen award should be less challenging operationally.

 

How to Optimize Operational Cost

If the below scenario resonates with you or your team, procurement optimization can save your team countless hours and cost in an attempt to realize the right award. Operational optimization can reduce back-and-forth frustration and let you focus on what matters—lowering your costs, improving operational efficiency, and increasing your ROI.

 

Your Current Procurement Sourcing Methods Are Not Optimized If:

  • Your procurement analyst spends hours creating multiple award scenarios in Excel.
  • The procurement supervisor takes days to review the data before asking for “tweaks” to the scenarios or if the tweaks take days to create.
  • After several iterations, the team is still displeased with the less-than-favorable cost savings or unwanted operational hurdles.
  • Even with a lower-cost option, the team isn’t thrilled because it requires more switching than can be easily managed in a few months.
  • The chosen award scenario is farther away from the cherry-pick and you give up trying to get closer because of operational obstacles or time constraints.
  • It takes more than two days on the calendar to generate the final award scenario.

 

How to Find the Optimal Award

Finding the optimal award is a mix of matching the right amount of suppliers at the right price with your operational realities. You may prefer to retain incumbent suppliers, utilize Tier 1 or trusted suppliers, or diverse suppliers. Optimization permits you to quickly understand the true cost of each decision, so you can compare trade-offs and intelligently choose the best possible award for your organization.

Procurement optimization lets you implement additional identified savings with less internal resistance. Many of EC Sourcing Groups’ clients say that Optimization has cut award time by 50-80 percent versus using Excel.

 

Procurement Optimization and eSourcing Within Reach

Contact EC Sourcing Group for a 30-minute demonstration and experience how our dynamic Optimization product can enhance your negotiations and increase savings. During this process, you will pick up to 10 constraints or operational rules, and we will run several scenarios with you.

 

Click here to schedule a demo of our optimization software or call us today to discuss your options at (866) 353-9737, option 1.

Supplier Management

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Optimization Module Screen Shots:

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Feedback:

We selected EC Sourcing to facilitate our purchased services and capital equipment bidding processes. Since implementation over 4 years ago,we’ve had great success using the solution to generate savings and leverage the automated web-based platform to increase visibility and cross functional team participation, improve bid process cycle time and overall organization to provide a more formal straightforward bidding process. We have found the solution to be easy for all parties with high vendor participation. We have used the solution to negotiate small buys and extremely large capital purchases with success on all levels. Lastly, EC Sourcing Group has provided a high level of support both on technical matters and strategic sourcing strategy.

Ken Macon

Catholic Health Care Partners

Your software is great! I have been involved in many of these (e-Sourcing negotiations) and in fact just finished one last week for Schering Plough. Your software is much less complicated and more user-friendly than any of the other ones I have used.

Jean Labanowski

Global Computer Supplies

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Schedule a demo to see how we can help streamline and automate your sourcing process, increase spend under management and deliver measurable savings.