Four Strategic Sourcing Problems, One Smart Solution

Posted on:15 May 2020 by Amreen Khan

strategic sourcing week

The sourcing function stands on certain basic principles that make it the mediator between the business and its suppliers. Its success therefore lies in finding the perfect balance between cost and quality. With cost-efficiency aligned perfectly with the long-term benefits of quality sourcing and supplier relationship, eProcurement becomes the correct move to do it most effectively, with optimum utilization of existing resources.

While many institutions thrive by following the best practices, there are others who miss the woods for trees. Identifying the common problems associated with sourcing and figuring out their solutions is how businesses can overcome procurement hurdles.

Here are some of the most common sourcing problems:

1. Inadequacies in Structure Design

The process of sourcing is no walk in the park. It requires frequent checks to keep track of things and a great deal of effort too. An unstructured design hinders the process and draws it longer than needed. With the use of robotic process automation (RPA), processes become simplified, streamlined and a major chunk of the mundane tasks is taken care of by the system.

2. Compliance and Adherence

A deal or transaction involves more than one entity. The need for all entities involved to be on the alert for quality checks and more is vital. While you may have checked and double-checked every aspect of the sourcing process at your end, it is essential that regular quality checks of suppliers be carried out in terms of timeliness, rejection and other incidents, user satisfaction rating, post-sales service behaviour, etc. The implementation of tools to automate the process eliminates the occurrence of any instances of overlooked aspects, ensuring complete compliance and adherence to the process.

3. Plugging all possible Loopholes


Often, even the minutest of discrepancies such as irregular paperwork or individual setbacks such as a lack of attention to detail could cause miss-outs, communication gaps and confusion, impacting the process of sourcing as a whole. Intricately built process automation with validation and system-generated alerts can help keep track of defects and substandard quality of sourcing.

4. Incomplete Scrutiny of Proposals

A common sourcing problem for businesses is an inadequate evaluation of proposals for the right combination of quality, lead time, service level and price before finalization of awards. Making thorough assessments from all relevant aspects, cross-checking their suitability vis-à-vis the requirements provided, and taking an informed and wise call on awarding right can be a time-consuming and effort-staking activity if done manually. Aided by automation, an eProcurement solution can help you avoid the usual gut-feeling based manually arrived awarding decisions which are seen to be prone to hits-and-misses, trials-and-errors – and ensure smooth and speedy completion of the sourcing process without the usual hurdles and time wastage.

Having identified all of these problems, Cimmra helps power up your procurement process with ease by correctly addressing these issues in its eProcurement solution and ensuring a smooth and speedy, quality procurement platform for your businesses.

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