Some guy named Mike Lamoureux wrote guest commentary in the latest newsletter from Eyeforprocurement, on the in’s and out’s of sourcing optimization. Of course, its worth a read because optimization is technology that has a bark much worse than its bite. Meaning…its not as bad or complicated, as you think it is. Specifically, the end of the article mentions:
Whereas reverse auctions are often only good for squeezing the fat out of supplier margins, optimization solutions uncover true efficiencies. So, when your reverse auction fails to deliver any additional savings the third time you run it on the same commodity, decision optimization can still be used to find potential savings through improved inventory management, distribution, or dual-sourcing strategies. Strategic Sourcing Decision Optimization will transform your sourcing process for the better.
This is a classic evolution into the next phases of eSourcing for companies that have already experienced great results with the first few waves. Additionally, we see many companies coming to the table with a more advanced outlook on deploying and utilizing eSourcing concepts. More information on advanced sourcing and negotiations are available, at no charge from our sponsorship of an Aberdeen report on the subject earlier in the year.