Cimmra Brings Order to the Chaotic Procurement World: Sourcing and Procurement

Posted by Fazal Sayyed

Sourcing and Procurement

Inroduction

One of the most important processes in upstream supply chain management is Sourcing. Businesses frequently find themselves falling behind in this process, which results in a considerable loss. It is frequently discovered that buyers have been delivered substandard or low-grade goods, or less desirable items at higher costs, as a result of inadequate sourcing practices.

What is Sourcing?

Sourcing is the process of assessing, choosing, and managing suppliers who can deliver the inputs a company needs for their business. Sourcing is in charge of researching, developing and implementing strategy, setting quality and quantity indicators, and selecting suppliers who satisfy these requirements.

Steps involved in sourcing

  • Need Identification

  • Market Research

  • Vetting Suppliers

  • Negotiation

  • Selecting Suppliers

  • Evaluation Of Supplier Performance

Challenges Faced by Sourcing Professionals

1. Consolidation of Suppliers

Sourcing experts are under pressure to limit the number of suppliers they engage with in order to reduce complexity and achieve better purchasing power.

2. A Time-consuming and Manual Process

There is also a sense of urgency to succeed. Existing sourcing methods are complicated and frequently manual. Getting all of the stakeholders on board with a sourcing project takes a lot of work, and bottlenecks in the process result in missed deadlines. ​

3. Optimizing Spend

Sourcing teams are under pressure to reduce costs. Sometimes it entails combing through contracts for bulk discount opportunities.

4. Supplier Quality and Compliance

Sourcing teams are also under pressure to do thorough research in order to assist stakeholders in selecting the best supplier. Not only must it be capable of delivering the products or services, but it must also fulfill the buyer's ever-changing compliance needs.

5. Data Warehouses in Multiple Systems

Data pyramids in numerous systems make it difficult to improve the sourcing and contracting processes. Different user experiences make it challenging for procurement and sourcing specialists to optimize the larger source-to-contract process.

Cimmra for Automation of Sourcing and Procurement

1. Structured Methodology – adoption of YOUR Standard Operating Procedures (SOPs).

A systematic approach guarantees that each transaction is approved at every level of authorization without the need for further back and forth repetition of transaction improvements. It is also possible to keep track of any deviations or out-of-process exceptions. Ready-to-use RFX templates, pre-defined approval procedures, a pre-set library of terms and conditions, and questionnaires all help keep the day-to-day procurement process aligned with corporate SOPs.

This improves efficiency and gives firms more time to focus on the quality of their sourcing rather than the monotonous activities.

2. Faster Sourcing

There is no doubt about how advantageous eProcurement may be in this situation. With the use of technologies like robotic process automation and features like smart source lists, accuracy is considerably boosted, making the setup and execution of sourcing events much more efficient. And, with automated procedures in place, sourcing and procurement are greatly accelerated, cutting turnaround time for quality sourcing dramatically.

3. Elimination Of Unnecessary Paperwork

Sourcing entails a lot of transactions through multiple procedures, emphasizing the need for paperwork or documentation for each. Cimmra, on the other hand, drives everything online, removing the need for physical paperwork and preserving all transaction records in a single data repository that you can access in the form of reports and analytics on the go.

4. Strengthen Compliance

Because all procurement-related papers are recorded in one location, auditing is simplified, as is compliance with regulatory requirements, thanks to a system that visually displays how and why a supplier was chosen.

5. Use Detailed Supplier Information

Cimmra Sourcing enhances buyer-supplier openness. Teams may use a portal to examine all tender possibilities from a supplier, including deadlines, status, and other important information.

6. QCS Is Generated Automatically

Cimmra Sourcing creates comprehensive Quote Comparison Sheets (QCS) from supplier responses. Evaluators can compare results from general, technical, financial, quality, and commercial questionnaires side by side.

By providing comprehensive decision insights, this improves accuracy and reduces assessment and approval time for the sourcing event.

Conclusion

Companies profit immediately from investing in eProcurement technology because their efficiency is raised, their sourcing timeline is cut, their sourcing quality is greatly improved, and their savings are significantly increased.

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