A new era of procurement is upon us. As the new year approaches, the interplay of data, trends and supplier relationships will continue to elevate sourcing from a business function to a business outcome. In the same echelon of CRM solutions, collaborative data sharing through procurement can optimize performance and make a very meaningful impact on a business.
Opportunity-based pipeline management in the cloud is the most direct path to long-term sourcing success. With the rise of technology that enables this, more and more organizations will rework their sourcing strategy towards one that is focused on cloud-based collaboration.
We believe that 2017 will be a breakthrough year for sourcing, one fueled by unprecedented collaboration within the enterprise. By using technology built for this very purpose, teams can illustrate measurable business impact and make better project investment decisions with confidence. Enterprises that embrace these capabilities will reap a wide range of business benefits.
Below are four sourcing capabilities that will benefit your company.
1. Fast-tracked organizational goals
Best-in-class teams remove the traditional complexities associated with sourcing by simplifying the overall process. This empowers them with streamlined strategic sourcing that aligns to organizational goals. Enhanced visibility and real-time project management help stakeholders go beyond mere cost savings and tackle strategic issues such as ensuring that resources are allocated appropriately or that suppliers are selected for ROI. By implementing a company-wide sourcing methodology, metrics become more strategic and the company stays ahead of the curve.
2. Performance-based KPIs
Embedding collaboration across sourcing processes directly improves performance. By measuring each team member’s contributed key performance indicators (KPIs), organizations can ensure that sourcing decisions are informed by consistent judgment. Sourcing managers can make goals actionable and achievable, which in turn streamlines intake from the line of business, reduces the bidding cycle and decreases contract-renewal time. When stakeholders have complete oversight and the tools to track, monitor and collaborate on pipeline sourcing events, business impact is multiplied.
3. Mitigated business risk
Technology that can flag compliance issues and comprehend supplier data and contract terms will also decrease an organization’s vulnerability. Having the capacity to predict business outcomes before investing in a product helps prioritize spend and minimizes negative supplier performance. User-friendly platforms with data transparency mitigate the effects of disruption, be it inconsistent decision making or a supplier relationship gone awry. Teams equipped with this technology can flag and fix issues in real time.
4. Simplified contract management
Previously, sourcing and procurement lacked visibility into contracts and their associated risks. Now, cloud-based supplier contracts make document management easier than ever before. Complete data transparency allows organizations’ legal departments to quickly adhere to compliance, governance standards and reporting requirements. Stakeholders can instantly access any bidding history or supplier service agreements, minimizing risk exposure and simplifying audit and financial review processes.
Simply put, deploying a nimble and scalable sourcing software technology — one that is completely cloud-based and mobile — puts any enterprise ahead of the curve. Interdepartmental teams that are equipped with unprecedented visibility and control over budget spend, process and critical decision points will have a significant competitive edge because they can truly understand the impact of their investments.
2017 is the year to elevate sourcing into a more dynamic and collaborative process. The technology is there, and those who grasp the opportunity will see a marked impact on their business.
As more enterprises look to evolve their sourcing strategy, we at Scout will be ready to provide flexible and smart applications that can help teams reach unprecedented levels of success.
Chris Crane is a co-founder and VP of product at Scout RFP. He previously worked at ERICO. He has a passion for designing and building solutions that make life easier, and today his mission is to make the world of sourcing simpler for all.