How can you enhance your sourcing capabilities with digital tools?

1 Online platforms

One of the most common digital tools for sourcing is online platforms that connect buyers and suppliers. These platforms can help you discover new suppliers, compare prices and quality, and negotiate terms and contracts. Some examples of online platforms are Alibaba, Thomasnet, and Sourcengine. To use these platforms effectively, you should have a clear specification of your sourcing requirements, do your due diligence on the suppliers, and monitor their performance and feedback.

2 Sourcing software

Another digital tool for sourcing is sourcing software that automates and optimizes your sourcing processes. Sourcing software can help you manage your supplier database, track your spend and savings, and conduct strategic sourcing activities such as sourcing events, auctions, and bids. Some examples of sourcing software are Scout RFP, Coupa, and Jaggaer. To use these software effectively, you should integrate them with your existing systems, train your staff on how to use them, and customize them to fit your business needs and goals.

3 Communication tools

Communication is essential for successful sourcing, especially when dealing with global and diverse suppliers. Communication tools can help you communicate with your suppliers in real-time, share information and documents, and collaborate on projects and issues. Some examples of communication tools are Skype, Slack, and Google Docs. To use these tools effectively, you should establish clear and consistent communication protocols, use translation and interpretation services when needed, and respect the cultural and time differences of your suppliers.

4 Data analytics tools

Data is a valuable asset for sourcing, as it can help you make informed and strategic decisions, identify opportunities and risks, and measure your performance and impact. Data analytics tools can help you collect, analyze, and visualize your sourcing data, such as supplier profiles, market trends, and spend patterns. Some examples of data analytics tools are Power BI, Tableau, and Qlik. To use these tools effectively, you should define your key performance indicators, use reliable and relevant data sources, and communicate your insights and recommendations clearly.

5 Artificial intelligence tools

Artificial intelligence (AI) is a digital tool that can enhance your sourcing capabilities by augmenting your human intelligence and capabilities. AI tools can help you perform tasks such as supplier discovery, risk assessment, contract analysis, and price forecasting. Some examples of AI tools are IBM Watson, Llamasoft, and Creactives. To use these tools effectively, you should understand their limitations and biases, verify their outputs and accuracy, and complement them with your domain knowledge and expertise.

6 Blockchain tools

Blockchain is a digital tool that can enhance your sourcing capabilities by creating a secure and transparent record of transactions and information. Blockchain tools can help you improve your trust and traceability with your suppliers, reduce your costs and errors, and comply with regulations and standards. Some examples of blockchain tools are IBM Blockchain, VeChain, and OriginTrail. To use these tools effectively, you should align your business processes and objectives with your suppliers, ensure your data quality and security, and join or create a blockchain network that suits your industry and needs.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?