Sourcing and SRM

Analytics applied to get insights about contracting models, cost saving drivers, supply chain risk reduction and also to obtain an improved procurement process and supplier relationship.

Sourcing Analytics – the power of data

Procurement processes and functions have been through major changes in the past 20 years, specially driven by more strategic approaches like Strategic Sourcing and Total Cost of Ownership. In addition, it has also segmented the acquisition process based on the type and relevance of the product or service, their supply chains and the risks for the business.

In fact, all technology efforts have been focused on marketplaces and process automation for procurement, contract management, supplier performance tracking and management.

Sourcing and Procurement functions have always been measured by their agility, efficiency and cost saving capabilities and, as a consequence, artificial Intelligence and analytics do not get much attention, placing them, typically, as laggards in the organization when it comes to use of data.

Strategic Sourcing

Procurement Planning

Supplier Relationship Management

Procurement Execution & Spending

We have recently seen the increased use of advanced analytics modeling in Sourcing and Procurement, especially when there is a particular complex scenario for pricing and/or for assessing risks in fulfillment or future markets. Commodities pricing is a good example of an area that has already proven that Analytics can bring lots of value. There is still so much more to be achieved.

The latest risk models allows us to determine ideal fulfillment scenarios that leverage benefits from delaying or anticipating an acquisition, considering as an input, for example, their own inventory levels or 3rd party data. Tail spending optimization can benefit from root cause models and define a set of indicators to drive better negotiations. There is a world of opportunities for analytics in Sourcing and Procurement.

performance

DHAUZ can help with Sourcing and Procurement performance

Our services and solutions for procurement have a concept of Optimized Acquisition. We have specific approaches for different sourcing categories and also for Tail Spending management, which is frequently overlooked by Strategic Sourcing. Some of our analytical approaches are:

Spending Optimization

By identifying severe variations in prices we can detect the most relevant excessive spends in purchases and compare them to external market data, making it possible to define corrective actions.

Pricing Forecast for Commodities

Future price prediction for commodities allows us to find the best timing for a purchase applying ML algorithms associated with optimization methods based on Total Acquisition Cost.

Inbound Optimization

We have solutions tailored for raw material and components inventory ideal parameters definition, which will also determine optimal replenishment order points and inventory location, by modeling fulfillment for the production sites and the inbound supply chain.

Supplier Risk Management

Risk assessment for supply disruption and ESG critical factors within the integrated supply chain. Focused on resilience and the ability to keep operational levels undisturbed, even in extreme situations, and also to improve sustainability and local content.

Supplier Visibility and Engagement

Supplier visibility and performance evaluation delivered through a built-to-suit information-gathering layer that enables high frequency monitoring of deliveries, performance and the impact of delays and other disturbances to the next steps of your supply chain.