Competitive sourcing is a key element of Spend Control. Effectively defining the buying need and selecting the right supplier is critical for an organisation that wants to reduce both cost and risk.
Competitive sourcing is a key element of Spend Control. Effectively defining the buying need and selecting the right supplier is critical for an organisation that wants to reduce both cost and risk. But whether it's for a one-time capital equipment purchase or service contract, or for ongoing supply of frequently used goods or services, the process can be complex and time consuming.
Many organisations want to do more competitive sourcing events, but simply don’t have the capacity. Often the required effort is so high because processes are not fully standardised and still rely on mailing and emailing of what are essentially paper documents.
As a result, the organisation does not involve Procurement as much as it should (“it would slow us down too much!”) and does not follow well-defined processes. Many important purchases are made with agreements where both cost and risk are much higher than they could have been. And Procurement can only perform strategic sourcing on a fraction of the categories it knows it could.
The PROACTIS Sourcing Jump-Start Solution provides a highly structured, efficient and cost-effective process for organisations to:
- Categorise and prioritise sourcing event types
- Establish your standardised approach
- Educate stakeholders on new sourcing procedures
- Perform initial Sourcing events
The benefits of a comprehensive Sourcing capability built on standardised sourcing event processes, electronic document templates, collaborative requirements development and auto-assisted response scoring are significant:
- Increased savings from the use of competitive sourcing for a greater percentage of spend – significant savings can be realised in a short period of time
- Reduced supplier risk and increased levels of supplier performance against expectations because of improved requirements definition and supplier evaluation
- Accelerated satisfaction of the organisation’s needs for one-time goods and services purchases
- Increased scope of Procurement-led strategic sourcing for ongoing goods and services supply
- Expanded range of potential suppliers due to more frequent competitive bidding opportunities
- Improved supplier relations due to transparent, efficient selection processes
- Consistent compliance with regulatory requirements and guidelines
- Reduced administrative costs and lost productivity in Procurement and across the entire organisation