Thank you. We will be in touch shortly.

Request
Quick Call
Request Quick Call

Thank you. We will be in touch shortly.

 

Do's and Don'ts of Digitalization in Sourcing

Date posted: Oct 22, 2020
Estimated read: 2 min
Author: Henrik Leerberg
Topics: Digitalization

Digitalization of sourcing is the process of leveraging digital technologies to conduct all elements of the sourcing process such as finding and evaluating suppliers, awarding contracts, and monitoring supplier performance. Advanced tools are necessary to keep up with this ever-changing industry, and digitalization is power. 

You may think your company is already taking advantage of the digital revolution, but the difference between digitalization today and previous digital efforts is system integration. Most large organizations have thousands of suppliers that require interactions regarding profile maintenance, contact information, supply risk event responses, etc. When you combine the number of trading partners with the varied forms of interactions, it’s easy to see how complex the information flows can be in supply base management and why digitalization is critical to processing so much data.

Instead of spending considerable time and effort retrospectively and manually analyzing your sourcing data, real-time reports on a wealth of metrics are simply a click away. Imagine being able to find the following data with the click of a button: 

  • Savings generated
  • Number of sourcing events run
  • Sourcing cycle time
  • Number of suppliers participating
  • Categories covered
  • And much much more ... 

Sourcing professionals are essentially automating and streamlining processes through digitalization, enabling them to speed up each project cycle time and increase the percentage of spend under management. Sourcing processes can be more easily standardized using workflow technology, and management can access project status dashboards to see which projects are on time or behind schedule. As the entire process takes place on one platform, there’s no need to be constantly digging around for emails and hunting through spreadsheets for audits. All the data is in one place.

The benefits of digitalization are already widely known, but just how should one go about digitalizing sourcing?  We put together a quick list of do's and don'ts: 

The Do's of Digitalization

  • Do make sure to get key stakeholders and users involved at an early stage.

  • Do keep it simple.

  • Do remember that technology alone is not the solution.

  • Do maximize user-adoption and throughput.

  • Do make it easy.

The Don'ts of Digitalization

  • Don’t be too feature-centric.

  • Don’t try jumping across the stream in one go. Use stepping stones.

  • Don’t rely on system demos alone.

  • Don’t forget about selecting the right provider, as well as the right system.

  • Don’t forget what you’ll be judged on.

Digitalizing sourcing successfully doesn’t just mean selecting the right system. It’s about selecting the right provider too. To learn more about the Do's and Don'ts of Digitalization, download our whitepaper here:

New call-to-action


About the author

Henrik Leerberg
Chief Marketing Officer

As Scanmarket's Chief Marketing Officer Henrik oversees all marketing activities globally by fueling growth and creating value for both existing and new customers. Henrik has worked in software and electronics businesses throughout his entire career, operating in B2B markets. With more than 25 years of leadership experience from a range of software companies, Henrik has built a solid foundation for a broad business understanding within all aspects from engineering over marketing and sales to administration. Henrik holds degrees in Marketing and Business Administration and in Electrical Engineering.

See authors posts
Recent blogs
WEBINAR: Making the Case to Ditch Underperforming Software

WEBINAR: Making the Case to Ditch Underperforming Software

Is the grass greener on the side? Or, why should you consider switching software vendors? CIOs realize huge gains when they don't just auto-renew vend…

Read article  
Supplier Diversity Roundtable

Supplier Diversity Roundtable

From this session I have set out some of the key challenges as well as the consensus for action on supplier diversity.

Read article  
2022 Gartner Magic Quadrant for Contract Lifecycle Management

2022 Gartner Magic Quadrant for Contract Lifecycle Management

Magic Quadrants offer visual snapshots, in-depth analyses, and actionable advice that provide insight into a market's direction, maturity, and partici…

Read article