Embracing the cloud to drive organizational goals is no longer an option but a necessity for businesses and their customers’ success. Transforming a business with cloud-based strategic sourcing solutions to enable more informed, faster purchasing decisions is a global trend of world-class organizations. This trend underscores the way nimble companies put in place a quantifiable formula that drives strategic impact through stronger business partnerships, risk management and supplier innovation, all while lowering the cost of doing business to maximize returns.
The transition to the cloud impacts company culture and the role of the chief procurement officer (CPO) within an organization. As companies increasingly invest in upstream strategic sourcing technology, the process of procurement has shifted to the forefront of executive decision making. It has positioned the CPO and strategic sourcing teams as consultants and catalysts for change within the business.
We continue to see diverse companies successfully champion impact-based sourcing across their organizations. These companies leverage the automation, flexibility and transparency of new-age cloud solutions to build business-tuned sourcing models that deliver measurable results for greater impact year over year.
Take VSP, a large, nonprofit vision care provider which, by implementing a new intuitive sourcing platform, transformed its procurement process. VSP supports simplified, strategic sourcing that prioritizes the company’s value-driven mission to deliver high-quality service to its customers.
VSP’s new procurement platform increased sourcing compliance and enables its sourcing team to collaborate seamlessly, ensuring alignment with the company’s organizational goals. As a result, VSP has more sourcing projects in its pipeline, which provides additional opportunities to increase bottom-line savings and foster supplier innovation through stronger strategic partnerships.
Splunk, the leading provider of operational intelligence and machine-generated data, also automated competitive sourcing to deliver greater impact and keep pace with rapid growth. Streamlining workflows with cloud technology enables Splunk’s sourcing team to perform fast, accurate supplier analysis. Flexible, sustainable processes allow the company to stay one step ahead of the business’ dynamic needs.
Ultimately, cloud-based sourcing allows Splunk to continue to operate at high speed without sacrificing value. Transparent engagement with the lines of business ensures the best negotiation for budget holders, without compromising on their strategic vision. Splunk is now empowered to drive essential resources to the business faster, at a lower cost.
At Scout, we have seen that organizations that prioritize impact-based sourcing decisions are better positioned to meet organizational goals. Companies that transition to automated cloud platforms quickly realize that effective business collaboration, efficient supplier management and enforceable process compliance are the new terms of doing business. In turn, they gain a crucial competitive advantage.
Stan Garber is co-founder, chief customer officer and president of Scout RFP, a new-breed, cloud-based strategic sourcing solution that allows organizations to make more informed purchasing decisions, faster. Prior to Scout, Stan co-founded ONOSYS, which was acquired by LivingSocial in 2012.