Sourcing optimization solutions may have been around for over two decades, but they haven’t truly gone mainstream...yet. Many procurement teams still view these esourcing software tools as limited to niche or large-scale sourcing cases and only to be wrangled by staff members who possess specialized training and advanced skill sets.
That line of thinking is outdated, as times and market dynamics have significantly changed for procurement and supply chains in the past few years. Sourcing as a function keeps getting more complex and nuanced, and basic esourcing tools and legacy optimization offerings haven’t kept up. As one Keelvar customer put it during a webinar: “Excel is nice, but it's not where we need to be.”
Comfortable as many sourcing professionals may feel in the old familiarity of spreadsheets, turning back to desktop-based sourcing practices where you’re managing emails doesn’t come close to aligning with today’s Chief Procurement Officer-level prioritization of greater digitalization, modernization, and automation. And when something in supply chains starts happening with greater frequency – as we’re seeing with spot buying – scalability and speed are crucial.
Ardent Partners’ 16th Annual State of Procurement report showed how procurement executives are seeking out bold and inventive ways for their business to thrive in this ‘new normal’ in which we’re operating. Adding further fuel to this finding, data gathered in Keelvar’s inaugural Voices of Sourcing Survey revealed that more organizations than ever have an appetite for adopting sourcing software solutions to improve their effectiveness and competitive edge. And that’s where sourcing optimization comes in.
Modern sourcing software, such as Keelvar's Sourcing Optimizer, allows sourcing teams to conduct complex, more robust analytics that cannot be done manually or with commonplace desktop tools like spreadsheets. It helps analyze supplier award decisions against total value and risk profile, thus yielding one of the highest ROIs delivered by a procurement solution – typically 100%+ return after just one optimized sourcing event.
Keelvar's latest e-Book, Broadening The Reach & ROI of Sourcing Optimization, is a round-up of content that is focused on showcasing sourcing optimization’s benefits while helping to dispel the myths that these e-sourcing tools are difficult to use or time-consuming for your team to learn.
With the global supply chain disruption showing little sign of abating any time yet, we believe it’s high time to broaden the reach of optimization-backed sourcing technology to significantly uncover ROI potential for more businesses and to help them find additional untapped benefits ranging from talent sourcing and retention to forging stronger supplier relationships and even improved supply chain sustainability.