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3 Main Advantages to Smarter Sourcing

From pivoting to entirely remote operations to shoring up disrupted supply chains and taking a leading role in business continuity planning, the past year has seen strategic sourcing grappling with uncertainty from all angles. To combat this uncertainty, smart organizations have turned to their sourcing and procurement organizations for guidance on navigating unique challenges and protecting their futures. 

Strategic sourcing leaders across all industries have taken these challenges in stride, leveraging technology to stay connected and ensure the business continues to run smoothly despite disruptions. It’s clear that lengthy, manual procurement processes will no longer make the grade amid the rapidly shifting business landscape. As enterprises begin planning for the pivot back to in-office operations, approximately 45% of executives are fast-tracking procurement automation and transformation. By equipping the procurement organization with the necessary tools, businesses can empower their sourcing teams to support key business initiatives like risk management, strategic cost savings, and supplier relationship management. 

Technology-enabled sourcing teams are more effective at navigating change and are better equipped to deal with whatever the future brings. Let’s explore the three major advantages of smarter sourcing.

Tighter Alignment With Executives and Stakeholders

With organizations and business leaders spread across geographies, it’s critical that sourcing teams have a dedicated virtual hub for collaboration within their team and with their stakeholders. Amid ongoing disruptions, businesses need real-time collaboration capabilities to closely monitor and adjust priorities on the fly. 

Effective sourcing leaders are also staying tightly aligned with the C-suite by providing up-to-date reporting on cost savings as well as total visibility into project pipeline and spend. As the speed of business increases, executives and stakeholders must have automated analytics and real-time status updates on their urgent projects to make strategic, data-driven decisions. 

When executives and key stakeholders have total visibility into procurement processes, sourcing is able to drive exponentially more impact across the entire enterprise. When LendingTree, the largest online lending marketplace in the U.S., prioritized digital acceleration in its procurement organization, the company experienced impressive results, including:

  • Drastically reduced procurement Service Level Agreements (SLAs).

  • Nearly tenfold increase in projects completed.

  • Massive increase in savings booked.

Accelerated Sourcing Processes and Reduced Cycle Times

Strategic sourcing teams simply do not have time to hunt down necessary data from disparate spreadsheets and email chains. They need an intuitive single source of truth that centralizes their information and automates cumbersome tasks like data entry, request processing, and project and savings tracking.  

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