Maximizing Strategic Sourcing Benefits Through Management Solutions

Strategic Sourcing Management

Organizations are faced with the challenge of continuously managing their strategic sourcing to guarantee top performance in procurement. You may correctly assume that this is not simple task, and savoring the full benefits of your strategic sourcing requires powerful solution to make it reality.

A source-to-pay software manages your strategic sourcing processes at an enterprise level. It is an integrated solution that allows you to identify, select and manage suppliers, arrange contracts, and make efficient and compliant payments. This means that you have complete overview of your entire procurement cycle and can shape it to meet your corporate goals, adding transparency and streamlining processes to achieve greater cost savings.

To tap into the full potential of your strategic sourcing management and lever maximum benefits from your source-to-pay software, follow through the steps below:

1. Assess Your Strategic Sourcing Requirements:

Examine your current situation and establish the basics your strategic sourcing in terms of: existing and possible suppliers, products services, contract requirements, supplier strategy, policies and compliance criteria, etc. This will ensure that you have an up-to-date overview of your current requirements and an understanding of potential gaps that need to be addressed before progressing.

2. Requisition to Include:

Integrate existing and possible suppliers into your strategic sourcing by setting up requisitions including, amongst others, the description of the products services required and details of the desired contract terms conditions. This will facilitate the evaluation of supplier quotes.

3. Source and Evaluate:

Make use of sophisticated supplier catalogs and search, source, and evaluate prospective suppliers. This may include compatibility checks, viewing supplier profiles and ratings, comparisons of previous performance, and audits. Use pre-set conditions to filter out irrelevant or inappropriate suppliers, or filter on regions or categories, etc.

4. Agree and Contract:

Negotiate terms conditions based on negotiated requisitions, then finalize and contract the supplier terms conditions based on the pre-agreed contract parameters. This ensures that the suppliers adhere to the business? corporate guidelines, policies and compliance criteria.

5. Managing and Communication:

Access and store all communication documents and transcripts with suppliers, maintain up-to-date pricing, and insource new products services.

6. Monitor and Control:

Use balanced scorecards to measure performance and assess supplier qualities during the purchase cycle. Receive alerts and warnings informing you of potential under and over performance.

7. Get Real-Time Data and Reports:

Access real-time data and reports that has been generated from supplier bids, spend information, key performance indicators and wide array of other parameters.

A source-to-pay software consolidates the entire strategic sourcing process into centralized management system, enabling procurement departments to gain full visibility on the complete purchasing cycle. This means that you are now able to identify cost savings opportunities that would have been previously overlooked as well as detecting problems quickly and efficiently.

Through such management solutions, organizations will reap the rewards of their strategic sourcing by no longer losing time and resources on supplier management. Companies will be able to utilize their full budget potential and truly maximize their investment in the supply chain.