Sourcing Optimization

What is Sourcing Optimization?

Sourcing professionals use sourcing optimization to evaluate and develop supplier allocation and selection strategies based on a complex set of factors and business rules that often must be considered in the evaluation of strategic sourcing initiatives. To accomplish this evaluation and analysis, sourcing optimization uses mathematical models or algorithms to make the “optimal” sourcing allocation decision, based on meeting all stated constraints and business rules for a given set of data.

Common Challenges with
Complex Strategic Sourcing:

Traditional sourcing analysis is manual and cumbersome. Analysis is mostly done offline, often completed outside of strategic sourcing software in spreadsheets and it can be prone to error. One formula mistake can ruin the entire set of results.
Sourcing analysis can be extremely time-consuming. The first batch of analyses and reports for a complex category sourcing event could take days or weeks to produce. During this time, the team is investing energy and time into tactical activities rather than on strategic initiatives that could create more value for the organization.
Sourcing analyses are incomplete or simplified. Sourcing personnel may have all the data but there’s just no way to analyze it all properly.
Because analysis often takes place outside of sourcing solutions in spreadsheets or optimization focused solutions, data is disconnected and disjointed from the sourcing event process. Because of this there’s little to no opportunity for collaboration, knowledge isn’t retained when employees leave the company and its difficult to review and leverage historic results.

Let Ivalua Sourcing Decision Center Streamline ALL of Your Sourcing Processes Across ALL Spend with Sourcing Optimization

Ivalua provides your sourcing teams with an easy-to-use yet powerful optimization sourcing solution to make the best decisions possible. Since Sourcing Decision Center is natively part of the Sourcing Solution and the Source-to-Pay platform, data from across the platform can inform sourcing decisions. And once awards are made, award data can seamlessly be flipped into a new or existing contract with Ivalua’s Contract Management solution. Contact us to let us know how we can help your organization make better sourcing decisions in less time, with less effort.