How supplier data is driving sourcing and procurement

Sourcing and supplier data

In today’s world of complex supply chains, the speed of business continues to increase along with the ongoing pressure of process streamlining and decision making. Sourcing and procurement professionals are forced to accelerate execution, facing an increasing supplier base complexity, that goes along with a volume increase of digestible data.

On top of the speed of business,  cost savings are demanded on a continuous basis, putting the pressure on for sourcing and procurement managers, year after year.

In order to remain competitive, sourcing and procurement professionals are constantly looking to adopt new technologies to streamline sourcing processes. In this blog, we look at which technologies are used, how Leaders leverage supplier information management to streamline Supply Chain Processes and the influence of Supplier Data on Supplier Relationships.

 

 

Strategic Supplier Data Management

In ‘The Value of Strategic Supplier Data Management‘, Aberdeens Vice President and Group Director Bryan Ball investigated how sourcing and procurement professionals used, managed and leveraged supplier data in their organizations.

Sourcing and procurement manager have a long history of dealing with data issues and inconsistent data, mostly because supplier data isn’t collected from one single ERP, but multiple systems throughout the organization.

According to the report, Supply Chain Leaders are over 30% more likely to have an efficient supplier data management process to accelerate supplier onboarding. Figure 2 shows the key functional elements that are incorporated into what the Leaders are doing to manage their business compared to the Followers.

Screen Shot 2016-04-26 at 14.00.45

Screen Shot 2016-04-26 at 16.50.27

Use the tile below here to access the report and discover the answers to the following critical business questions:

  • Which capabilities and technology do Leaders have in place to drive superior supply chain performance?
  • How do Leaders leverage supplier information management to streamline their supply chain processes?

Supplier Management: Cost Reduction and Compliance are key

 

Supplier data and supplier relationships

The quality of data you receive from suppliers or third-party providers is of crucial importance for effective supplier collaboration. According to the 2016 Deloitte Global CPO Study, 39% of global procurement and sourcing leaders are planning to increase their level of supplier collaboration. Because suppliers in today’s supply chain are seen as strategic partners, supplier collaboration is considered as the second most important focus area after consolidating spend.

Despite the increase in procurement technologies, most procurement organizations haven’t painted a clear ‘picture when it comes to what kind of digital strategy to take. 60% of procurement executives said they lack such a strategy, while 40% do have a plan in place to cover technology solutions, such as digital reporting or cognitive analytics. Of those without a digital strategy, 38% said procurement was “exploring options for digital enhancement.”

“The majority of procurement executives said they are now investing heavily in innovative technology solutions. Specifically, 70% said they were investing in self-service portals — up from 43% from last year’s Deloitte Global CPO Survey. Forty-five percent said they were investing in cloud-based computing (compared with 26% in 2014), 42% said they were investing in mobile technologies (23% in 2014) and 16% were investing in social media technology (up from 6% in 2014).”

Takeaways from the 2016 Deloitte Global CPO Study:

  • Cost reduction is the top priority for CPOs as they look to sustain business growth in a slowing market
  • Stronger relationships and understanding between procurement and the CEO and CFO
  • Increased levels of supplier collaboration while continuing to focus on consolidation and relationship restructuring
  • A continued issue on securing, retaining and training the right talent pool, where 62% of CPOs don’t believe their teams have the skills to deliver the functions strategy
  • Increasing levels of core and transactional outsourcing with strategies shaped in some way by each organisation approach to global business services (GBS).

Access the full report by using this link.

Pieter Kinds

Pieter Kinds

CEO Freightender.com

Freightender is the standard in freight tendering. It makes the tender process lean, smarter and much faster. 
Fully cloud-based. Curious? Request a free live demo and join the Freight Tender Revolution!

Schedule Demo Freight Sourcing

Schedule Demo RFQ Management

European road transport rates reach record levels

Rates in European road transport are breaking records. This according to the  Road Freight Rate Benchmark study, conducted by industry association IRU, research firm Transport Intelligence (TI) and transport platform Upply for the second quarter of this year....

Ocean freight RFQ: 3 experts tips for professionals in 2022

How can you run a successful freight RFQ? In this ultimate ocean freight procurement guide, we share 3 key topics to get in order before sending your tender: good communication, solid logistics data and dedicated and modern technology (freight procurement platforms)....

Freight Auditing: a critical component of the solution, not just a marketing gimmick.

Auditing invoices in logistics is not sexy, but it offers a key to many challenges. In this article, I dive into this somewhat obscure niche. What is freight auditing? So what is freight auditing? It's simply the conceptual term for various processes performed to...

NVOCC pricing vs Freight Forwarder pricing

Is the distinction between NVOCCs and freight forwarders significant? This is a common question, therefore we decided to investigate it further in the following post. Read on to learn everything there is to know about NVOCCs, including their responsibilities,...

Road freight tenders: postpone due capacity crisis in logistics?

People in shipper organizations wonder if they need to postpone road tenders as there is talk about capacity issues everywhere and apparently carriers don't respond to tenders. The worry is right as the logistics world has changed but of course, you should tender if...

Pricing management in Logistics: Lever with the highest impact on profit

The relevance of profitable freight and logistics pricing strategies is highlighted by the combined effects of increasing industry competitiveness and rising transportation costs. By now the logistics industry is in turmoil for well over a year with no relief in sight...

Tender Management: Why the future is digital

Customers want to acquire freight or negotiate freight rates, so they send out a tender or RFQ to a group of forwarders or carriers who wish to participate in the process. This is straightforward and transparent. The process behind it is less visible and can be found...

New record prices for shipping containers Shanghai – Rotterdam

Prices for containers are going through the roof (and they were already so high)International container traffic is still disrupted. Containers are extremely expensive. The fact that a major Chinese port has reopened does little to change that.The cost of shipping a...

Demand for logistics procurement software is increasing dramatically in 2021

The logistics business has been in crisis for well over a year, with no signs of relief in sight as freight prices continue to increase and capacity constraints worsen. Logistics is a somewhat arcane and opaque profession to most people, but it has recently gained...

Freightender and Drewry partner to bring all-in-one ocean freight procurement

Global shipping consultancy, Drewry and Freightender are pleased to announce they have entered a value-add partnership, combining Drewry’s industry-leading ocean freight cost benchmarking and procurement support services with Freightender’s cloud-based,...
9 crucial tips for your freight RFQBest practice in freight procurement

9 important suggestions based on our experience of working
with 100's of companies on their freight tenders.