Today’s post is from our SafeSourcing Archives

This week we have been looking at the different characteristics strategic sourcing companies and solutions have that should be evaluated when making a decision as to what is most important to your company. At the beginning of the week we looked at technology, data and reporting capabilities and the different aspects of each and the importance they could play in sourcing projects. Today we will look at the different types of tools strategic sourcing companies can sometimes offer that can make your job as a procurement professional event easier.

Information Gathering – In Tuesday’s blog we discussed the importance of a good supplier database and template library foundation to beginning a sourcing project. This addresses the external data but does not always help explain the internal spend data and specifications especially when the category is a new one to your company. Being able to send electronic surveys to resources within your company in a way that requires very little effort can save a procurement team hours of time in legwork but, more importantly, can ensure that the picture of your spend you are painting for potential suppliers is accurate. Being able to understand who in your company is buying something, what they are buying, how much they historically purchased, how much they expect to purchase and whether they like the current product and supplier are all details which will shape a very successful event and can be easily collected with an online survey tool.

RFx – The concept of moving from Request to Information to Request for Proposal to Request for Quote/Tender is not a foreign one in the procurement industry and virtually every strategic sourcing company offers some type of tool or service to support this flow. Where the differentiator begins to come in is how seamless the flow from one step to another is. Do suppliers need to learn multiple tools? Is it online? Are details from step automatically moved over into the preparation and documentation of the next step? Each step of the RFx process is unique but has common threads that tie each together. Good RFx solutions will tie these threads together in a way that reduces the time it takes run from beginning to end and the amount of repetitive tasks required of the suppliers with each step.

Result Management – The information is gathered, the project is complete and the results are better than you could have expected. The problem is that without the tools to put those results into effect, they become worthless. Being able to manage the results of your sourcing events is considered by many to be more important than the results themselves and can take several different forms. Top begin with is a catalog/ordering/purchase order system that will allow your company to place the orders they need at the new pricing you have negotiated. Implementing a catalog system can also prevent rogue spending from unapproved suppliers based on past history. Another useful solution is a contract management tool to track your contracts and important details and dates, ensuring that the contract will not roll over into a situation that costs you even more money than you saved. Managing both aspects of a new deal are critical to maintaining your project’s success.

Having covered the technical, data and tool aspects of strategic sourcing partners and tools, tomorrow we will conclude with the most important piece of the puzzle which is the service your strategic sourcing partners can offer you that can save your team hundreds of hours and provide experience where you may have none. For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to your comments.

Today’s post is our  SafeSourcing Archives.

Strategic sourcing companies each have their own unique offering whether that is based on a price model, category focus, supplier database or some other defining trait, but the overall goal is to help their customers source products and services easier, smarter and with an end result that creates more value than the customer could achieve on its own. This week we have looked at the importance of data and technology when making a decision on a strategic sourcing partner and today we will be looking at the reporting and audit trail capabilities and how they fit into the mix of successful events. The best supplier research and technology will not be useful without the view of results in a way to make meaningful decisions.

Strong base reports – Every eSourcing solution has a standard set of reporting that they provide their customers when an event is complete. There are certain aspects of this report package which should be present in order to review the most basic details of an outcome. Supplier activity should be captured in a way that timestamps every quote entered in the system and who entered it. This is also part of the audit package described below. Any online notes should be reported on as well as the supplemental documentation many suppliers provide. The final outcome in a detailed and summary view should be provided as well as copies of all of the documents that were involved in the sourcing process. Basic award scenarios and supplier performance during the process should also be included in a standard spreadsheet or executive summary style report.

Capable of additional analysis – As important as the base set of reports you get from event are, the capability of your strategic sourcing partner to be able to provide additional analysis is just as important. There will be times when special circumstances surrounding the event need to be considered, or the way an incumbent factors into an award decision must be reviewed. Your sourcing partner’s ability to provide scorecards, provide additional award scenario details or break down situations where a primary and secondary supplier need to be awarded by location are all realistic and important ways that they can help save your team dozens of hours and allow them to do the other things they need to do for your company.

Audit Packages – There are usually not many times when a company will need an audit trail of what happened during a sourcing project but typically when they do it is of critical importance. So when evaluating technologies or partners make sure they can provide a package that includes copies of all documents and electronic versions of communications that went to any potential supplier. They should be able to provide time stamped documents of all notes and quotes entered into the system as well as who entered them for the supplier. All verbal communication and questions submitted by a supplier to the customer should be captured in a central place that either be accessed by the customer or by the administrators for reporting purposes. This package should be easily available and contain the trail of all communication with the suppliers.

Tomorrow we will look at some of the sourcing tools that are available and being used by many companies. For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to and appreciate your comments.

Today’s post is our SafeSourcing Blog Archives

We have begun looking at some of features and characteristics that are important when evaluating a new or existing sourcing partner this week beginning yesterday with technology. While not all characteristics we will cover will carry the same weight from company to company, they are all important factors for consideration when selecting a strategic sourcing partner or solution. In today’s segment we will be looking at the data that supplies the backbone for the projects you work on with your sourcing partner.

Global coverage – While there are obvious advantages from working with National, regional and local providers, it is important to be able to look at other global sources of supply. Having the options gives leverage to be able to make decisions as it relates to primary and secondary sources of goods and services. This is especially true for global companies who need to source goods and services local to their international offices. Working with a supplier that has a global supplier database is important to be able to develop a view that looks at all options of origin.

Feeding itself – Data by itself is useful, but data that gets smarter and fresher be leveraging the fruits of its labor is the key to running a better sourcing organization. For most companies the limited view they have of the supplier community goes only as far as their own experience or research. When you work with a third party strategic sourcing partner and/or tool, you are getting the benefit of experience that company has had with those suppliers, products and services. If a supplier has been great to work with, you should be getting the advantage of knowing that from your sourcing partner or tool. Likewise, if a supplier has not done well with delivering after an award of business, access to that information should be available as well. As thousands of sourcing projects complete each year the data you are looking at should be leveraging that information as much as possible.

More than the basics – Along the same lines as “feeding itself” your data should be more than just the basics about who a supplier is, where they are from and how big they are. Strong supplier databases should provide the level of detail on par with a mini-RFI before a project ever begins. This data should include who their biggest competitors are, what new products or releases they have completed in the last 2 years, who they are doing business with and where their core strengths lie. This should also apply to categories and having access to template libraries with starting documents for RFIs, RFPs, and online bidding specifications.

Data is still the key to succeeding in the business world. The more information you can get to help make informed decisions before projects begin, the quicker your projects and results can be put into effect and realized by your financial department. Tomorrow we will take a look at the points to consider from an audit perspective and how your eSourcing solution should be helping to provide you the trail of communication during a sourcing event. For more information on how SafeSourcing can assist you or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.

We look forward to your comments.