Strategic sourcing is an important field of supply chain management for a few good reasons. To start with, strategic sourcing is a way of understanding buyer-supplier relationships across numerous dimensions like pricing and business processes.
Strategic sourcing is a practice and study that observes supply chain processes to learn and develop enhanced practices. For example, the practice is a key element of defining learning opportunities within pricing and value ratios. This is a good time when companies are able to either offer increased or improved services/products for the same amount, and sometimes even less.
Strategic sourcing is also used for observing key processes within an organization, and deciding how to share these best practices across key partners. As a result, it is an important and complex field of study for the continuous growth and innovation of supply chain management.
However, with the onset of new technology, strategic sourcing can be enhanced.
E-procurement software is able to manage a company’s procurement activities spanning across purchasing, logistics and expensing. But procurement software can also create detailed data charts for analysis. Using procurement software companies are able to track their spending activity and learn where they either need to spend more or cut spending amounts.
Furthermore, procurement software such as Procurify can be key tools in tracking excess spending, especially with travel and expense accounts.
Procurement software can also be an important tool in developing supply chain processes. Establishing a single application to be used for supply chain management across the value chain can be a daunting task. Issues of personal training and process implementation can destroy any value new technology could possibly create.
In a bid for improved processes, however, enterprise software is becoming more user-friendly. By developing user-friendly software, businesses are able to minimize the training required for success but they still cannot completely remove the training aspect of implementation.
Aligned procurement software also standardizes the processes involved with current key activities. Rather than numerous different ways of completing a key activity, supply chain partners are able to define their industry standard way of completing said activity.