The Benefits of Platform-Based Sourcing
The digital transformation is well underway, making the investment into modern technology a necessary ascension for organizations with a hankering for longevity. The source-to-pay landscape is no exception. If we look at Sourcing (a stepping stone in upstream procurement) in particular, automating its processes can improve savings identification, increase collaboration, build stronger supplier relationships and align supplier, corporate and financial goals.
Commonly, decision-makers must elect either a single-solution provider or implement an integrated source-to-pay platform. While either option will have both advantages and disadvantages, there are some undeniable benefits of platform-based sourcing that make it a wise choice for forward-thinking visionaries as the digital age continues to progress.
Enhanced Visibility & Control
Platform-based sourcing enables deep-seated visibility and control over both source-to-contract and purchase-to-pay processes. Theoretically, the sourcing module will have connectivity and integration with other existing modules within the platform — giving you end-to-end management of all sourcing events for the direct creation of contract agreements, e-catalogs and/or purchase orders. This enhanced visibility and control empowers organizations to implement standard sourcing procedures and best practices, which then help cut costs and minimize supplier risk.
Competitive and open pricing is one of the more attractive benefits of platform-based sourcing — at least when it comes to the return on your investment. Of course, e-Sourcing allows you to weigh each potential vendor by the overall value of the goods or service being sought out (i.e., does it meet business requirements, additional features and functionality, price, etc.). The aforementioned visibility also provides insight into existing catalog prices versus newly negotiated prices from the sourcing event; uncovering any and all potential savings. Supplier performance can be analyzed in accordance with price, allowing you to make powerful awarding decisions while minimizing risk.
To those of you who get excited about data analysis and reporting, platform-based sourcing is generally equipped with broad reporting capabilities. Yes, you should be able to build reports to your heart’s content. On a platform, the unification between sourcing and procurement business systems and processes yields extensive data to be analyzed on purchasing performance. You can view the organization’s overall savings through sourcing events, or reduce the data to see savings by the purchaser, supplier, contract, commodity, and more.
If you’re ready to be strategic and proactive about the digital transformation within your organization, schedule a no-obligation personalized demonstration of our robust cloud-based Sourcing solution on the Corcentric Platform.