Advanced Sourcing
Electronic reverse auctions and e-RFx technologies have been effective in reducing
per-item costs and automating sourcing practices for procurement's "low-hanging fruit", but
today’s organizations need more sophisticated methodologies and technologies if
they are to achieve the next level of savings and efficiency for the spends their
basic e-sourcing platforms cannot address.
Advanced Sourcing relies on bidding flexibility and optimized scenario analysis
to address a larger portion of an organization’s spend, open up the marketplace
for more expressive negotiations, and drive continuous savings and efficiency improvements
into your supply chain.
Operational or tactical sourcing activities are easily supported by basic e-sourcing
technologies, where the focus is on line-item pricing, small spends, or bundled
market baskets. But only 25-35 percent of a company’s purchasing volume and actual
spend dollars are well supported by these solutions. They lack the flexibility required
to collect the supplier and bid attributes necessary to conduct more strategic sourcing
activities, and the analytical horsepower to evaluate comprehensive supplier proposals
alongside real-world business constraints.
Companies that follow a ‘one size fits all’ sourcing solution strategy are creating
a situation where buyers are either force-fitting more strategic spend categories
through these tools, and thus limiting their potential for real results, or are
relying on tried and tested, but inefficient Excel spreadsheets to collect
and analyze supplier proposals.
CombineNet Sourcing Solutions leverage advanced sourcing technologies to reduce
the total cost of ownership for the goods and services you buy; drive savings, efficiency
and innovation into the supply chain through Expressive Commerce™; increase the
percentage of spend under management by targeting the strategic categories unaddressed
by basic e-sourcing tools; and significantly increase the speed and efficiency of
the sourcing cycle.
Read more about CombineNet’s concept of Expressive Commerce, and its impact on enterprise-wide value, buyer efficiency, supplier innovation, stakeholder alignment,
and spend under management.