- February 12, 2019
Top Reasons to Reconsider Your Sourcing Software
As the world has become more connected, logistics management and supply chain administration have been altered significantly and dramatically. This trend has raised many questions about the sourcing software companies utilize and whether it is still relevant. If you use global sourcing software, here are some warning signs that you may want to consider a change.
It Isn’t Strategic
Strategic sourcing utilizes all the available sources of materials and optimizes processes to allow for a streamlined, cost-effective, and timely utilization of the highest-quality materials possible. Too many companies, however, still rely on paper-based sourcing or sourcing software that is one-dimensional, with no method of expanding beyond known suppliers. With e-sourcing options, there is no excuse for this. Not using an e-commerce-oriented sourcing software solution can put you at a strategic disadvantage over your competitors.
Sophisticated e-sourcing software will allow for the coordination of multiple apps and databases into a procurement system that can assess new supplier opportunities on an ongoing basis. A one-dimensional sourcing solution will keep every component of the supply chain separate and won’t actively look for new suppliers. By actively looking for new suppliers, the sourcing software you use can create company savings and greater efficiencies.
It Isn’t Cloud-Based
With the expansion of mobile devices as business tools, data storage has become a major issue. One way businesses can address that is to utilize a cloud configuration. If your sourcing software isn’t able to utilize the cloud to store and access data, you are putting yourself at a disadvantage; you won’t be able to use many mobile options. This can severely limit your ability to find suppliers to only what is in your system or is input manually. If your system isn’t cloud-based or at least has access to the cloud, you aren’t running the best strategic sourcing software you can find.
It Requires Manual Input for Management Processes
An effective sourcing software solution will allow for online collaboration and coordination of the supply chain management process. A one-dimensional system won’t allow online collaboration or will severely limit it. Cutting-edge sourcing software suppliers have recognized this and have developed collaboration tools and apps that allow for coordination of supply chain processes regardless of where suppliers are located.
It Ties You Down with Administrative Tasks
E-commerce makes processes easier to manage, more efficient, and scalable, saving time. Much of that time is spent updating spreadsheets, data entry, generating reports, and making sure schedules are up to date. A system that utilizes greater degrees of automation and collaboration eliminates much of the need to manually update databases and schedules. That saved time allows sourcing professionals to develop strategies to expand sourcing, find new vendors, and negotiate friendlier terms.
It Isn’t Scalable or Able to Integrate Processes
An unwieldy sourcing system that should be updated or replaced won’t allow for separate parts of the sourcing process to integrate, particularly for the sourcing manager. When a vendor is selected, their information, including order details, doesn’t automatically transfer to requisitions, contracts, and purchase orders. A robust sourcing system will allow for complete integration of each step of the process.
Your sourcing software is critical to your ability to meet all your production goals. If your system exhibits any of these problems, it’s time for an update. For more information, check out CBX Software.