Sourcing & Cost Management

The Sourcing & Cost Management category is defined by super-intelligent, automated and augmented sourcing, with deep category specific capabilities.?

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The Leading Edge

The very best sourcing and cost management solutions act as a?cornerstone for delivering commercial arrangements with suppliers which are equitable, insight-led and focussed on delivering value for the business. These outcomes are achieved via fair, ethical and robust sourcing practices, which leverage automation and GenAI to enhance the buying experience.

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“Over 90% see optimising cost and cashflow as important drivers of their data-driven decision intelligence investments.”

Furthermore, this is one of the categories in this year’s 100 that has experienced the most dramatic increase in headcount growth.? Today, solutions are enriching cost analysis, to create dynamic should cost models and total cost of ownership projections. Meanwhile, negotiations are being automated at scale, and both category and industry-specific solutions are consistently evolving, frequently augmenting existing S2P solutions whilst also providing differentiated capabilities across Strategy, Tactical, Tail Spend and Spot Buy sourcing.

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In pursuit of these advanced capabilities, the core areas of focus for Sourcing & Cost Management are:??

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·????? Cost and cash flow: Enabling equitable commercial arrangements with suppliers to better manage cost and maximise cash flow

·????? Innovation: Using the sourcing process to unlock supplier innovation and drive category innovation

·????? Data services:?Increasingly able to leverage big data collected on?the platform to?provide valuable?insights?such as?price?benchmarking, trends

·????? Automation:?Increasing levels of automation capabilities, leveraging GenAI to drive autonomous negotiations and pre-build sourcing, contracting and SOW documentation. ?

·????? Responsibility:?Creation of fair, ethical models for sourcing?manifested in various ways throughout the solution capabilities

·????? Looking beyond sourcing:?Expanding capabilities to cover the end-to-end?lifecycle of a given category, supplemented by managed services?to provide optimal customer experience

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Creating Value in Sourcing with AI

By integrating GenAI into Sourcing & Cost management, procurement can gain a competitive edge through enhanced market intelligence, improved decision-making, and more strategic and agile processes.

·????? Supplier Discovery and Evaluation: GenAI can streamline the process of identifying and evaluating potential suppliers, making the sourcing process more efficient and effective.

·????? Predictive Cost Analysis: AI can use historical data and market trends to predict future cost changes, helping procurement anticipate and manage price fluctuations.

·????? Spend Analytics: GenAI can help to identify patterns, trends, and anomalies in the spend data.

·????? Dynamic Pricing Models: AI can help develop dynamic pricing models that adjust to market conditions, supplier performance, and demand trends. This ensures that procurement is always paying the best possible price.

·????? Negotiation Support: AI can assist in the negotiation process by analysing historical data, market conditions, and supplier information to recommend negotiation strategies, identify leverage points, and simulate negotiation scenarios.

The 2023 ProcureTech100 pioneering solutions for Sourcing & Cost Management are:

·????? Fairmarkit : an intelligent sourcing platform that empowers organizations to source smarter, not harder

·????? Globality, Inc. : Market leading AI-powered autonomous sourcing

·????? Keelvar : Drive better sourcing outcomes for strategic, tactical and tail spend

·????? Lytica Inc. : Electronic component spend analytics and risk intelligence, using real customer data

·????? Pactum AI : Unlocking hidden value through autonomous negotiations

·????? SPARETECH : Revolutionising spare parts management

·????? Supplyframe : Design-source-intelligence for the global electronics value chain

·????? Tropic : Gain visibility and control over every supplier, contract and dollar

·????? Tset : Revolutionising cost and carbon management for the manufacturing industry

·????? Vertice : Smarter SaaS and cloud spend

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?The Future is Now

By investing in the digitalisation of Sourcing & Cost management, companies can unlock enhanced efficiency, reduced costs, supplier innovation, improved risk management, and greater value creation through data-driven decision-making and process automation.

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Join the conversation on SOURCE to discuss how these technological leaps can be transformative for organisations.

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