What To Expect from Best-in-Class Sourcing Optimization Technology and User Design (Part 2) [PRO]

Sourcing optimization has played a somewhat curious side role in the history of e-sourcing technologies. Approximately half a dozen procurement vendors have offered varying degrees of capability over the years, but customer adoption, especially in the user base of vendors offering other sourcing and procurement technology suite capabilities, has remained variable, as have the capabilities of the underlying optimization solutions themselves.

As we noted in the first installment in this series, sourcing optimization is “heady, complex and requires significant mathematical, technical and domain expertise to use” — at least in the past. It’s not a common skill combination. Developing and supporting such capability has also required skilled R&D (academic), product development and product management resources, so assuming you could find the right people, adding sourcing optimization to existing sourcing products required significant investments.

This Spend Matters PRO series provides a “how-to-guide” to selecting and developing best-in-class sourcing optimization technology, inclusive of a user design and interface that can maximize adoption. We suspect it will be useful for procurement organizations, consultants, business process outsourcing (BPO) firms and third-party logistics (3PL) providers evaluating or cobbling together solutions to use internally or own behalf of customers.

But this brief should also be equally valuable for technology vendors that are looking to build capability in the area, or improve upon existing sourcing solutions. In Part 1 of this series, we explored how powerful constraint support, solid mathematical foundations and advanced cost modeling capability must come together in a solution that dovetails best-in-class functional capability with optimal user design. In this second installment, we turn our attention to e-sourcing and reverse auction integration approaches, guided sourcing “what-if” support and automatic missing/outlier data identification.

For full access to this PRO content: