Future of Sourcing - Supplier https://www.futureofsourcing.com/tags/supplier en Opening up supply chain data for the benefit of all https://www.futureofsourcing.com/opening-up-supply-chain-data-for-the-benefit-of-all <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/September%202022%20Article%20Graphics%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/September%202022%20Article%20Graphics%20%281%29.png" title="supply chain data" class="colorbox" rel="gallery-node-2218-lI1jf7gCM-k"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/September%202022%20Article%20Graphics%20%281%29.png?itok=YuXrlH9n" width="624" height="325" alt="supply chain data" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p><span data-preserver-spaces="true">When considering global supply chains, it&#39;s not new news that they are notoriously complex and opaque. Among other challenges, this means that issues such as child and forced labor, deforestation and environmental degradation can remain in the shadows. Identifying the source of these problems becomes so complex that tackling their root causes and seeking remediation for affected communities becomes a near-impossible endeavor.</span></p> <p><span data-preserver-spaces="true">To tackle these issues, it&#39;s essential to go back to basics and work on the data. Even at the entry-level of name and address data for global production facilities, the quality of data about global supply chains is poor. This then begs the question: if there is no shared understanding of where facilities are located, how can there be any clear sense of those facilities&#39; social and environmental conditions? While efforts have been made in recent years to map supply chain data, with the apparel sector at the forefront of this movement, it has been - and in many cases, continues to be - hidden behind lock and key, which benefits very few. There are several interrelated problems at play here:</span></p> <ol> <li><span data-preserver-spaces="true">Insufficient thought and attention have been paid to how data is&nbsp;</span><em>gathered</em><span data-preserver-spaces="true">: what data points are being collated, and why? How is that data being logged? How is it being standardized?</span></li> <li><span data-preserver-spaces="true">How is that data being&nbsp;</span><em>shared</em><span data-preserver-spaces="true">: what consideration has been given to the format? Tables embedded on websites, data locked in PDFs and other non-machine readable formats are of limited use to anyone trying to use that data in a practical way. This leads to the third point:</span></li> <li><span data-preserver-spaces="true">What is the intention behind gathering the data? How will it be&nbsp;</span><em>used</em><span data-preserver-spaces="true">? Gathering and even sharing data is not an end in and of itself: it is how the data will be used, in a practical sense, that holds power.&nbsp;</span></li> </ol> <p><span data-preserver-spaces="true">Open, standardized data can overcome all this. Making this data accessible to all brings enormous benefits, whether powering interoperability between different datasets, bringing visibility and clarity to complex supply chains, or enabling supply chain stakeholders to work together on the social or environmental improvements that are so desperately needed. Open, standardized data allows anyone to efficiently make connections about global supply chains, in turn enabling:</span></p> <ul> <li><span data-preserver-spaces="true">Informed discussions regarding upcoming legislation and how to meet the raft of incoming ESG reporting requirements</span></li> <li><span data-preserver-spaces="true">Much quicker routes to remediation for affected communities</span></li> <li><span data-preserver-spaces="true">The development of mitigation strategies for the impacts of climate change</span></li> <li><span data-preserver-spaces="true">A clearer understanding of supply chain issues or hotspots at major companies and retailers, of which they may not previously have been aware</span></li> </ul> <p><span data-preserver-spaces="true">Without open, standardized data, these connections may never be made.&nbsp;</span></p> <p><span data-preserver-spaces="true">By opening up supply chain data as a free, public good tool and acting as a single source of truth for global supply chains, we believe stakeholders across sectors and supply chains can come together to improve human rights and environmental conditions in and around factories - a win-win for everyone.</span></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier-data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">supplier data</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Management</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Opening up supply chain data for the benefit of all - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/opening-up-supply-chain-data-for-the-benefit-of-all"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div> Wed, 14 Sep 2022 14:51:01 +0000 Natalie Grillon 2218 at https://www.futureofsourcing.com https://www.futureofsourcing.com/opening-up-supply-chain-data-for-the-benefit-of-all#comments Pursuing Data-driven Insights? Start With Your Supplier Data https://www.futureofsourcing.com/pursuing-data-driven-insights-start-with-your-supplier-data <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/FoS%20Graphic%20%288%29%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/FoS%20Graphic%20%288%29%20%281%29.png" title="Supplier Data" class="colorbox" rel="gallery-node-1922-lI1jf7gCM-k"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/FoS%20Graphic%20%288%29%20%281%29.png?itok=hX_W6hKq" width="624" height="325" alt="Supplier Data" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Pursuing Data-Driven Insights? Start With Your Supplier Data</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/why-transparency-matters-to-us-all">Why Transparency Matters to Us All</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>For years, experts have <a href="https://hbr.org/2016/11/how-artificial-intelligence-will-redefine-management">urged business leaders</a> to prepare for the coming AI disruption. Realizing the amazing potential of these emerging technologies, <a href="https://tdwi.org/articles/2019/08/16/diq-all-ai-and-bi-data-preparation-tasks.aspx">they argued</a>, would require businesses to overhaul how they manage data. Yet with the economy booming, many found it easier to push tricky data questions into the future.</p> <p>Fast-forward to 2020. The COVID-19 pandemic and trade conflicts have upended entire business models. <a href="https://www.nytimes.com/2020/09/22/business/luxury-fashion-september-coronavirus.html">Across</a> <a href="https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/how-six-companies-are-using-technology-and-data-to-transform-themselves">industries</a>, the most resilient businesses are those with a strong handle on their data, using real-time information on consumer behavior and inventories to make strategic pivots. Investors have taken notice, as<a href="https://www.bloomberg.com/news/articles/2020-08-25/stock-market-warns-workers-that-they-re-the-problem-for-business?sref=GX0WPFvK"> research on the S&amp;P 500</a> shows stock prices are increasingly correlated with the value of &ldquo;intangible assets,&rdquo; such as proprietary data.&nbsp;</p> <p>In response, many companies are <a href="https://www.wsj.com/articles/cloud-startups-experience-wave-of-pandemic-fueled-investments-11601026201">fast-tracking</a>&nbsp;what had been long-term plans for digital transformations, hoping advanced data capabilities will secure their place in a technology-fueled economy. Yet many would be wise to first improve their data practices to ensure the fundamentals are in place for transformation success.</p> <h2>Data Management for (Enterprise) Beginners</h2> <p>To reform data quality, many businesses are turning to the <a href="https://www.industryarc.com/Research/Master-Data-Management-Market-Research-500874">growing</a> market for Master Data Management (MDM) solutions. MDM aims to improve uniformity, accuracy and governance of attributes relevant to an enterprise&rsquo;s stakeholders. Essentially, this means creating a master record for data on the critical aspects of a business. However, MDM only brings full benefits when rolled out across the entire enterprise &mdash; a potentially daunting prospect.</p> <p>A more accessible strategy would prioritize business functions that stand to gain the most from improved data standards, such as procurement. With Supplier MDM, a sub-discipline of MDM, companies can upgrade their supply network practices while providing a starting point for broader data management endeavors.</p> <p>By creating processes, establishing accountability and setting standards for data integrity, Supplier MDM creates a &ldquo;single source of truth&rdquo; for all essential supplier information. When done right, Supplier MDM can improve supply chain visibility and streamline reporting. Facilitating connections between data points also creates the conditions for successful implementation of new technology such as automation.</p> <h2>Verified Data at the Source</h2> <p>Traditionally, finding supplier data has often meant time-consuming manual searches, with results often undermined by language barriers, outdated database records, or human errors or bias. AI methods now use millions of data points to bring together up-to-date product data, financials, corporate and geographic news, corporate sustainability data, active certifications, etc. The overall result is that supplier management can now be sustained with optimal quality data at all times.</p> <h2>The Perils of Mismanaged Supplier Data</h2> <p>Why is supplier data so critical? In many cases, businesses underestimate the complexity that underlies seemingly basic information like addresses, contact information, bank details and certificates. Often, inaccurate and outdated records are held in various databases across multiple departments, with no clear ownership over either the data or the maintenance process. This results in flawed reporting, impaired analytics and lost trust with stakeholders.</p> <p>Even slight errors can lead to serious headaches. For example, misspelling a vendor name creates duplicate entries in a supplier database, making it difficult to assess spend analysis at a glance. At best, rectifying this mistake will require extra effort to consolidate the information. More worrisome is the possibility that leadership makes critical business decisions based on incorrect numbers &mdash; all because of a wrongly placed keystroke.</p> <p>Lack of coordination around data also leads to missed opportunities. Consider departments within an organization that use the same supplier on different contracts, instead of leveraging volumes for better pricing or payment terms. Innovative solutions to these communication problems face their own data hurdles; while there are AI tools that could flag such cost savings, they require correctly labeled data for proper analysis.</p> <h2>5 Steps to Effective Supplier Master Data Management</h2> <p>Clearly, the risks of poorly governed supplier data are severe and growing. How, then, can companies pilot successful Supplier MDM initiatives?</p> <h3>Build Your Team</h3> <p>Supplier MDM is not the sole province of procurement. As a process with touchpoints across the entire enterprise, it must be overseen by a cross-functional team of dedicated data stewards.</p> <p>These data stewards will set standards for quality and integrity at every stage of the supplier lifecycle from data entry to output, including setting uniform data fields and formats and establishing processes for reporting, updating and verification. Dedicated members of this team will also oversee supplier onboarding procedures, direct data maintenance approvals, and determine how to address irregularities or missing information.</p> <h3>Conduct a Self-Assessment</h3> <p>First, the data governance team should review current supplier management processes and assess how well they fit the organization&rsquo;s evolving needs. The team should document which metrics are being measured and how data is being recorded and used for reporting, especially for growing priorities like sustainability. From the beginning, it is critical to engage every domain that has a touchpoint with suppliers, like finance.</p> <h3>Prioritize Supplier Onboarding</h3> <p>The start of a new business relationship provides an opportunity to lay the groundwork for later success. This is due to the complex but routine work involved at this stage of the supplier lifecycle, including reviewing compliance practices, risks and certifications. Effective Supplier MDM streamlines these tasks by, for instance, pinpointing if the supplier requires a new setup or if there is an existing relationship elsewhere in the organization.</p> <p>Before any business line collects new supplier information, the request should be reviewed according to the data governance team&rsquo;s approval process, followed by another level of review before entry into enterprise resource planning, procure-to-pay or other systems.</p> <h3>Simplify Updates</h3> <p>Typically, various teams make ad hoc updates to internal records as soon as they hear of product or personnel turnovers or other supplier changes, without considering the downstream impacts. For this reason, control processes are a core component of a Supplier MDM structure. Designating responsibility to specific users from each function for their data records ensures the appropriate review occurs.</p> <p>The best Supplier MDM frameworks incorporate both internal and external reviews. This can be done by delegating accountability in vendor contracts or establishing dedicated data portals.</p> <h3>Deactivate, Never Delete</h3> <p>Disengaging with a partner is a natural part of doing business. Yet deleting a record can interrupt data flow to other stakeholders, such as hiding information on dashboards or removing data needed for audits. The supplier data process should involve multiple stakeholder approval levels before deactivation or access to internal portals is revoked. It is equally important to document why a relationship was terminated to inform any future due diligence.</p> <h2>Future-Proofing With Supplier Data</h2> <p>Supplier MDM is an ongoing process. As companies come to view their data as a core business asset, the data governance team will face complex questions around data governance and domain-specific issues like regulatory compliance. Once procurement data governance teams are up and running, they can support the rest of the organization&rsquo;s larger MDM platform. With experience under their belts, these leaders will be well-positioned to instill a culture of data awareness and openness to innovation across the whole organization.</p> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">supplier data</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/master-data-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Master Data Management</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Pursuing Data-driven Insights? Start With Your Supplier Data - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/pursuing-data-driven-insights-start-with-your-supplier-data"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 06 Aug 2021 02:00:00 +0000 Ophelia Otto 1922 at https://www.futureofsourcing.com https://www.futureofsourcing.com/pursuing-data-driven-insights-start-with-your-supplier-data#comments Use eAuctions Instead of “3 Bids and a Buy” for Greater Savings https://www.futureofsourcing.com/use-eauctions-instead-of-3-bids-and-a-buy-for-greater-savings <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/eAuctions%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/eAuctions%20%281%29.png" title="Despite auctions being far more efficient than negotiating prices, to secure direct and indirect services and goods, they are entirely underused by multinationals. " class="colorbox" rel="gallery-node-1905-lI1jf7gCM-k"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/eAuctions%20%281%29.png?itok=xzN2AkLl" width="624" height="325" alt="Despite auctions being far more efficient than negotiating prices, to secure direct and indirect services and goods, they are entirely underused by multinationals. " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/reconsidering-the-services-category-for-eauctions">Reconsidering the Services Category for eAuctions</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>In late 2020, Robert Wilson and Paul Milgrom were awarded the Nobel Prize in Economics for breakthrough work on structuring auctions to deliver the best results for both the seller and buyer. Google, for instance, reinvented the advertising industry, which was based on face-to-face, closed-doors deal-making, with its programmatic, automated, real-time, largely auction-based digital platform. In doing so, Google grew exponentially by providing millions of small businesses with the ability to advertise cost-effectively.</p> <p>So, why aren&rsquo;t auctions used far more extensively by procurement?</p> <p>Why does procurement rely heavily on &ldquo;three bids and a buy&rdquo; to secure everything from raw materials to marketing services?</p> <h1>eAuctions for Procurement</h1> <p>Procurement leaders believe auctions will not help them reach their savings targets due to the &ldquo;winners curse,&rdquo; a phenomenon where a supplier overestimates how much they need to lower their bid in reverse auctions to win. This creates psychological resistance in suppliers to lower prices as they fear that they will end up unnecessarily cutting into their own margins. Moreover, there&rsquo;s a myth that auctions cannot be conducted for items below a certain price level, despite eBay disproving it 20 years ago.</p> <p>Which brings us back to our Nobel Prize-winning scientists who proved that a bidder &mdash; a supplier &mdash; will choose not to lower their bid for an item in order to avoid the &ldquo;winners-curse.&rdquo; However, if all participants were offered a level playing field in terms of information, they would be able to make continuous modest alterations to their bids to reach the optimal price of any item. In other words, our Nobel scientists discovered that auctions eliminate bias and increase transparency into competitor pricing, leading to higher savings for procurement</p> <p>Auctions provide the best way to drive savings for organizations in a way that is mutually beneficial for buyers as well as suppliers, and procurement is completely underusing them. It&rsquo;s a massive missed opportunity.</p> <h1>To replace &ldquo;three bids and a buy&rdquo; with auctions, procurement needs to:</h1> <ol> <li><strong>Select the right format: </strong>When focused on savings, use a Reverse English format. As suppliers continually place bids, additional pricing information is distributed among all bidders, driving the price lower and lower. Whereas when you&rsquo;re looking to establish multiple suppliers for a single category, use Reverse Japanese auctions since suppliers must indicate their willingness to continue participating after each round of lowered prices. This is as opposed to a Dutch auction where a winner is decided whenever a supplier accepts the price.</li> <li><strong>Remove the &ldquo;winners curse:&rdquo;</strong> Today, procurement negotiations decide the final price and terms after receiving quotes from bidders. Instead, with auctions, providing feedback to all suppliers about their price-competitiveness enables them to bid more aggressively. Additionally, during the auction itself, by providing unlimited bids while sharing real-time bidding information amongst participants, suppliers can compete without fear of under-bidding. Most importantly, the transparent nature of the auction, in contrast to negotiations, will eliminate any feeling of politics, favoritism, personal connections and bias that suppliers generally suspect.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li> <li><strong>Group items when the value of each item is low:</strong> When procuring low-value resources, such as translation services or low-volume chemicals, group similar items together to create lots, enabling suppliers to provide an overall lower value to a lot. Additionally, it makes it easier for suppliers to participate because they won&rsquo;t split their attention across too many items.</li> </ol> <p>Despite auctions being far more efficient than negotiating prices, to secure direct and indirect services and goods, they are entirely underused by multinationals. By using auctions, your suppliers will see competitors&rsquo; price ranges while procurement will eliminate bias to achieve saving targets and build stronger vendor relationships.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/eauction" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">eAuction</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/bidding" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Bidding</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/indirect-services-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">indirect services</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Use eAuctions Instead of &amp;ldquo;3 Bids and a Buy&amp;rdquo; for Greater Savings - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/use-eauctions-instead-of-3-bids-and-a-buy-for-greater-savings"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 07 Jan 2021 21:19:58 +0000 Prabhav Pattapurati 1905 at https://www.futureofsourcing.com https://www.futureofsourcing.com/use-eauctions-instead-of-3-bids-and-a-buy-for-greater-savings#comments Global Sourcing: Myth Versus Reality https://www.futureofsourcing.com/global-sourcing-myth-versus-reality <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2843%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2843%29.png" title="Global Sourcing" class="colorbox" rel="gallery-node-1764-lI1jf7gCM-k"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2843%29.png?itok=qfRF_N4B" width="624" height="325" alt="Global Sourcing" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/supplier-collaboration-sharing-influence-for-shared-success">Supplier Collaboration: Sharing Influence for Shared Success </a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Global sourcing offers numerous benefits. Unfortunately, due to misinformation, many companies overlook global sourcing as a solution and miss out on potential productivity benefits. In this article and the complimentary infographic, we will explore and debunk some of the most persistent myths about global sourcing.</p> <h1>Myth 1: With So Many Global Outsourcing Partners Available, It&rsquo;s OK to Pick the First Provider That Stands Out to You.</h1> <p>Reality: While there is indeed a vast selection of global sourcing partners available, take the time to conduct due diligence and to seek a partner that specializes in the services, products, and applications for which you need manufacturing support.</p> <p>Just like domestic manufacturers, global sourcing manufacturers specialize in different areas. Assemble a list of options, compare and contrast pros and cons, and contact facilities (or a sourcing partner), if you need more information.</p> <h1>Myth 2: To See the Greatest Benefits of Global Outsourcing, Choose the Lowest-cost Partner.</h1> <p>While global sourcing can yield significant cost benefits, the lowest-cost facility is not necessarily the right choice. Be sure that a facility can meet the capacity, timing, and quality requirements that you and your end customer require.</p> <p>Also, keep in mind that lower costs are often not the only reason for using global sourcing. A global partner can provide expanded capacity, faster turnaround for large orders, and the ability for you to focus on core processes while components are manufactured elsewhere.</p> <h1>Myth 3: Language and Cultural Barriers Detract From the Effectiveness of Global Sourcing.</h1> <p>In today&rsquo;s global industrial manufacturing landscape, facilities maintain personnel well-versed in numerous languages and cultures, to offer the best possible service to manufacturing partners.</p> <p>In addition, global sourcing agencies are available to help bridge any communication gaps. With this level of service in place, you can feel confident that your questions will be answered and that you will have total transparency at every step of the process.</p> <h1>Myth 4: Global Sourcing and Offshoring Share a Stigma.</h1> <p>Offshoring is different from global sourcing in that it involves moving core production processes to a different country &mdash; a practice that continues to have a poor reputation. In global sourcing, you maintain domestic facilities, operations, and personnel.</p> <p>You can turn to global sourcing for supporting services such as additional capacity, component manufacture, assembly, warehousing, and more. Global sourcing keeps processes onshore &mdash; avoiding the stigma associated with moving operations elsewhere.</p> <h1>Myth 5: The Cost Benefits of Global Sourcing Are a Trade-off For Lower Quality.</h1> <p>Global sourcing partners now maintain stringent quality control processes and work with you to assure that their production is up to the standards you and your customers require.</p> <p>Contracts often contain quality clauses. You and your representatives will be able to monitor outsourced processes as needed. You will have access to traceable quality data for your records and for any customers who may require additional documentation. The myth of poor quality from outsourced manufacturers is no longer true.</p> <h1>Myth 6: One Must Find a Trustworthy Global Sourcing Partner Because You Will Have No Control Over Outsourced Operations.</h1> <p>While it is true that a trustworthy sourcing partner is beneficial, you do not have to worry about a loss of control over production operations upon signing the contract.</p> <p>Due to higher quality expectations, multilingual personnel and a changing competitive landscape, you can monitor every detail of outsourced operations and can step in as needed. With this control in place, an outsourced production will be up to the same standards kept in your facility.</p> <p>The accompanying infographic shares even more myths about global sourcing, as well as information about some of the myths described above.</p> <p><iframe allowfullscreen="" frameborder="0" height="1730" marginheight="0" marginwidth="0" scrolling="no" src="https://image.slidesharecdn.com/axia-infographic-190913130946/95/global-sourcing-myth-versus-reality-1-638.jpg?cb=1568380287" style="border:1px solid #CCC; border-width:1px; margin-bottom:5px; max-width: 100%;" width="668"></iframe></p> <div style="margin-bottom:5px">Axia Sourcing is a <a href="https://axiasourcing.com/services/sourcing/" target="_blank">global sourcing</a> service provider.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/global-supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/global-sourcing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Sourcing Procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Global Sourcing: Myth Versus Reality - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/global-sourcing-myth-versus-reality"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 20 May 2020 16:01:08 +0000 Tim Baker 1764 at https://www.futureofsourcing.com https://www.futureofsourcing.com/global-sourcing-myth-versus-reality#comments