This situation is not unusual. On the contrary, it is surprisingly common, particularly in organisations that operate across multiple units or locations and where sourcing activities are continuously carried out across different parts of the business.
In this type of environment, sourcing often operates in two realities at the same time. On the one hand, there is the strategic level, where everything should be controlled and transparent. On the other hand, there is day-to-day work, where things need to be done quickly and practically, and the solution in use does not always support the work in the best possible way.
When day-to-day work does not follow the process
This quickly becomes apparent in sourcing events. RFx requests are sent out in different formats, suppliers respond in different ways, and ultimately the bids are compiled manually for comparison. The process works, but it takes time and requires a significant amount of manual work.
At the same time, supplier-related information exists in separate silos. Contact details are stored in one place, contracts in another, and potential audits or questionnaire responses somewhere else. Without a complete picture, every sourcing event partly starts from scratch.
This does not mean that sourcing is underdeveloped. Often, the opposite is true. The sourcing team knows very well what should be done, but the tools used in day-to-day work do not support the process smoothly enough.
Bid comparison is often the most time-consuming stage of a sourcing event
One topic comes up in almost every discussion with sourcing teams. The most time is spent reviewing bids received from suppliers and extracting the information that is relevant for comparison.
This work is necessary, but it should not be this laborious. When information arrives in different formats and at varying levels of detail, the comparison inevitably becomes a manual process. At the same time, the risk of errors increases.
When this is combined with the fact that each unit may conduct sourcing events in slightly different ways, the overall process becomes difficult to manage.
Streamlined sourcing saves time
When a sourcing event runs smoothly, the benefits are most visible in day-to-day work. RFx requests have a clear and consistent structure, suppliers can respond to them easily, and the responses are directly comparable.
As a result, the sourcing team’s work is no longer focused on compiling information, but on activities that create value. Bids can be properly analysed and supplier selections can be made based on reliable information.
At the same time, a broader body of information gradually begins to form. Instead of disappearing once a sourcing event is completed, the information remains available to the organisation for future decisions.
Supplier data starts accumulating through day-to-day work
One important change often happens almost unnoticed. When sourcing events are carried out consistently, the information accumulated about suppliers also begins to form a coherent whole.
Information that was previously scattered gradually comes together. The same supplier is no longer just an individual bid somewhere in an email thread, but part of an ongoing overall view that includes history, performance and information on whether relevant requirements have been met.
This makes sourcing more proactive. Decisions are no longer based solely on an individual sourcing event, but on a broader understanding of what is known about the supplier.
Change does not start with the system, but with the way of working
It is often assumed that this type of development first requires a major system overhaul. In practice, however, change starts from the other direction.
Building a consistent way of working does not require a major system project. Many organisations start by standardising their sourcing events and expand to other tools later as their needs evolve.
When sourcing events begin to run more smoothly, other sourcing information also starts to become more structured. The process becomes more consistent, work becomes faster and transparency improves.
For many organisations, this is a realistic way to move forward. There is no need to change everything at once. Instead, the organisation can start with one clearly defined area where the impact on day-to-day work is greatest.
More efficient sourcing events strengthen the role of sourcing
When friction in sourcing events is removed, the impact quickly becomes visible. The sourcing team’s work is no longer fragmented across individual tasks but instead forms a controlled whole.
Decisions can be made faster, information is more readily available and supplier relationships can be managed more effectively. At the same time, sourcing begins to be seen within the organisation as what it should be: a function that supports the business, rather than one that slows it down.
Summary
The challenges associated with sourcing events are usually not strategic. They are challenges related to day-to-day work that quickly multiply in a large organisation.
When day-to-day work becomes more streamlined, other areas of sourcing also begin to develop. That is why even a small change in the right place can have a surprisingly significant impact.
