The world around us has dramatically changed over a short period of time, causing several organizations to rethink their sourcing operations in what is considered the new normal. Businesses that outsource products and materials are in a particularly difficult situation, especially for those organizations that have a single source of supply. Quickly finding the right suppliers to partner with, sourcing quality products, mitigating supplier risk will become greater priorities to continue growth and avoid any potential damages. Below are some of the ways how implementing a sourcing solution, such as Oracle Sourcing Cloud, can help your organization streamline your negotiations, reduce supplier risk and increase savings.
Negotiating the best deal with your suppliers is a critical step in increasing cost savings and exploiting the best opportunities, but it is not an easy task to say the least. As procurement organizations are increasingly being pressured to speed up their negotiations, creating a negotiation document from scratch can create a barrier by slowing down the authoring process. Using a sourcing solution, such as Oracle Sourcing Cloud, allows procurement organizations to streamline their sourcing process by guiding them step-by-step through the creation of a negotiation document. Users are able to leverage information from past negotiations or utilize negotiation templates, which includes requirements, negotiation lines, suppliers, etc. so organizations can leverage best practices, easily create quality documents that comply with their business and speed up the approval process.
After an RFQ has been submitted, buying organizations need to be able to quickly assess all of the supplier bids that they receive during a sourcing event. When your organization receives multiple bids at a time, manually reviewing and comparing each bid can be a very long, cumbersome process leading to increased cycle times. Using an automated sourcing platform can enable organizations to accelerate their evaluation process by reviewing multiple sourcing bids at a time while also quickly awarding a supplier. Using the Award Analysis Tool within Oracle Sourcing Cloud, users are able to quickly review proposals and determine the best supplier to partner with based on different categories, such as which supplier will offer the best price, quality and value. Built-in collaboration allows you to leverage the knowledge and expertise of stakeholders across your organization using team scoring, which allows users to score and weigh in on the evaluation by providing feedback on supplier responses. Also, users are able to review supplier bids side-by-side in order to simplify the supplier selection process and make the best and most effective awarding decision.
Having visibility in to your sourcing activities is an essential trait of a high performing procurement organization. Increased visibility allows you to make more effective sourcing decisions, improves communication, accelerates the document approval process and enhances information sharing. Oracle Sourcing Cloud provides procurement organizations with the visibility they need to stay on top of their sourcing activities and key metrics. Users are able to monitor what is happening in all of their recent sourcing activities so they can stay up to date and proactively take any necessary action. Users can also use the negotiation monitor to monitor auctions, assess the competitive landscape and potential savings in real-time. Also, users have insight in to how their negotiations are progressing and are able to take actions such as extending or pausing their auctions.
Finding the right suppliers to partner with can be a very tedious task. Although a procurement organization has to find a supplier that meets their business needs, procurement teams need to make sure that any supplier they bring on board meets their compliance requirements. With so many various forms of supplier risk that can arise, vetting suppliers has taken on vital importance as any new supplier has to be able to meet a company’s compliance criteria to minimize any potential risks that can cause any type of reputational or financial damage. With Oracle Sourcing Cloud, organizations can mitigate supplier risk by leveraging the questionnaire library within Oracle Supplier Qualification Management Cloud. Suppliers can provide any supporting documents such as insurance coverage, certifications, etc. in order to mitigate potential supplier risk.