3 Modern Sourcing Myths Debunked

Collaboration and data visibility are two trending topics that keep popping up when discussing modern sourcing strategies. And with the Gartner Magic Quadrant released  just a few months ago, procurement teams are researching provider rankings to determine which provider suits their company best. Every provider is pitching their story and explaining why they are the best fit.

So, how can you wrap your head around all this information being thrown at you? And how do you determine what information is true vs. myth when it comes to modern sourcing best practices?

Read below for three popular modern sourcing misconceptions and the facts to debunk these myths:

1- Myth #1: “Sourcing technology is one-size-fits-all.”
Every procurement organization has their own unique goals and challenges, which is why a one-size-fits-all ranking for all vendors is not a recipe for success. But don’t just take our word for it- Spend Matters agrees in this whitepaper: E-Sourcing: Criteria for Selecting a Provider. Developing provider ratings in a silo isn’t beneficial in the real world of sourcing technology adoption and usage. Just as world-class athletes come in all shapes and sizes, sourcing providers play to their own strengths and opportunities as well. Keep this in mind when you’re trying to determine the right provider for your organization. To learn more about which strategic sourcing provider is the right fit for your organization’s needs, check out the Gartner Magic Quadrant 2013 here.

2- Myth #2: “Collaboration is not needed to improve my sourcing initiatives.”
Decision making is a collaborative activity. Collaboration with your procurement team and stakeholders can help you gain insight and solve business problems faster and better. You can improve your current decision making process and sourcing initiatives by using collaboration in a dynamic dashboard  to:

  • Invite others to your collaborative session
  • Share reports and make notes on reports and line items
  • Ask and answer questions in real time
  • Establish a record of how decisions were made

Check out this recent blog post to learn more about how you improve your sourcing initiatives with collaboration.

3- Myth #3: “My sourcing initiative will be just as successful without visibility into my company’s spend.”
This myth could be furthest from the truth. Sourcing projects and spend visibility go hand-in-hand. Visibility will give you a best-in-class advantage in your sourcing initiatives. However, CPO Rising reports in a recent article data visibility may prove to be the most challenging for procurement pros to achieve. But don’t let the challenge (or perceived challenge) be a roadblock to achieving modern sourcing excellence! Top notch solutions will give you the visibility factor you’re seeking and help you reach your company’s fullest potential. Click here to learn more about the visibility factor and how it can be a foundation to your sourcing processes.

Can you think of additional modern sourcing myths? Share your thoughts by commenting below or tweeting us @iasta.

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