Recently, Iasta sponsored a Webcast featuring Jason Busch from Spend Matters. Busch presented 10 ideas that go beyond basic sourcing to enhance procurement’s value to the business. By embracing new sourcing-related tools and services, teams can gain critical knowledge about spend to drive additional cost savings. The following post blogs will outline the 10 ways, outside of transactional related focus areas, that both Spend Matters and Iasta see delivering new value to organizations.
“We see this whole concept of sourcing optimization and market informed sourcing as the future,” Busch said. “I do believe there will be a place for auctions and basic sourcing tools, but it will be critical to be more fluid in the RFP and data collection process.”
Busch encourages companies to think creatively when working with suppliers. He suggests that procurement teams brainstorm alternative specifications and proposals that are tied to volume, capabilities, certain materials, certain payment terms, etc. Using advanced sourcing technology allows teams to fully explore – not just weight- all price and non-price factors in the tender. Then, they can run scenarios based on constraints and present a menu of outcomes for stakeholders to consider.
Stay tuned for Part 2, when we will explore the second idea to drive procurement’s influence using advanced technology. In the meantime, check out Spend Matter’s and Iasta’s Websites for more information and research on advanced sourcing.
P.S. Can’t wait for Part 2? Click here to download the complete Webcast.