What is Dynamic Market Sourcing?

Dynamic market sourcing is a flexible, tech-driven approach to procurement that enables organizations to continuously adapt sourcing strategies in response to changing market conditions. Unlike static sourcing models where suppliers, pricing, and contracts are often locked in for long periods, dynamic sourcing is built for agility, resilience, and responsiveness.

At its core, dynamic sourcing leverages real-time data, automation, and intelligent decision-making to:

• Identify new sourcing opportunities quickly
• Reassess supplier capabilities and risks frequently
• Adapt sourcing events in real time
• Reduce supply disruptions
  

In essence, it’s about shifting from a reactive to a proactive procurement strategy – one that’s resilient to disruption and optimized for ongoing change.

Procurement leaders today face a perfect storm of challenges:

• Supply chain disruptions from global events like COVID-19 and geopolitical tensions
• Rapidly changing costs for raw materials, fuel, labor, and logistics
• Sustainability pressures that require rethinking supplier selection
• Increased complexity in supplier networks, product SKUs, and regional sourcing needs
  

These factors make it nearly impossible to rely on static sourcing strategies that were designed for more stable times. Instead, dynamic sourcing offers a better way forward, one that emphasizes agility, automation, and intelligence in sourcing processes.

To fully embrace dynamic sourcing, organizations need to focus on a few key pillars:

1. Real-Time Data and Market Intelligence

Staying on top of supplier performance, pricing trends, and geopolitical risks requires live access to actionable data. This includes internal data (e.g. rates, savings, supplier KPIs) and external data (e.g., benchmarks, shipping delays, market news).

2. Automation and Intelligent Sourcing Tools

Modern sourcing tools like Keelvar’s Sourcing Optimizer use AI and automation to slash the time it takes to create, launch and execute sourcing events, adapt sourcing rules in real time, and make optimal decisions faster than traditional RFx tools.

3. Agile Event Management

Dynamic sourcing involves running more frequent and smaller sourcing events that are tailored to specific needs, rather than relying on infrequent, broad-scope tenders. This approach allows procurement teams to respond faster to market shifts.

Dynamic sourcing delivers a host of benefits for companies looking to modernize procurement:

• Improved supplier agility: Continuously evaluating suppliers ensures you’re always working with the best-fit partners for current conditions.
• Faster response to market changes: Teams can pivot on a dime in response to disruptions or opportunities.
• Cost savings and risk reduction: Real-time optimization helps reduce overspending and mitigate exposure to supplier or market risks.

Better decision-making: With sourcing optimization, teams make smarter, data-backed sourcing decisions in less time.

Keelvar’s sourcing solutions are built to support dynamic sourcing strategies at scale. Our platform helps procurement teams:

• Create, launch and execute sourcing events faster
• Continuously evaluate supplier performance and capabilities
• Respond quickly to disruptions using automated workflows
• Use optimization to balance cost, risk, and sustainability goals
  
  

Keelvar’s technology is already helping some of the world’s largest enterprises adapt to volatile markets while delivering procurement excellence.

Case in Point: One global logistics customer used Keelvar to run ocean freight sourcing events more frequently, helping them save millions by adapting to volatile rate changes faster than competitors.