Supply Chain Conference Session: Sourcing and Procurement as a Competitive Weapon
By Bridget McCrea -- Logistics Management, 12/1/2006
Electronic sourcing and procurement have evolved from “nice-to-have” features to mandatory tools for supply chain managers today. The days of manual processes are all but gone, replaced by sophisticated systems that can quickly and accurately obtain, use, and disseminate information on a 24/7 basis. Speaker Scott Hays, senior manager of product marketing for program sponsor Epicor Software, said that the good news is that adoption rates and return on investment for supply chain technology have lived up to analysts’ projections. Companies have turned the savings—both in terms of direct cost and human resources—into opportunities to grow their businesses.
Hays shared the electronic sourcing and procurement practices that drive the greatest returns, while co-presenter Sergio Bolaños explained how The Chamberlain Group used automation to accelerate its procurement performance.
After operating largely in manual mode, The Chamberlain Group made a significant technological and cultural change to implement automated sourcing and procurement tools. Using a “holistic” approach, Bolaños said, the company was able to effect change throughout once-disparate departments and get all of them on one page.
Getting there doesn’t have to cost a bundle, said Hays. He pointed out that the high prices initially paid for procurement sourcing solutions are now “cooling off” just as ROI on such systems is coming into view. “There’s much more focus on total cost of ownership, implementation, and running of the system, and a reduction in the cost of administration associated with supplier enablement,” he said.
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