Optimizing Sourcing Decisions for Your Business

strategic esourcing

Whether you’re a small business or a major corporation, optimizing sourcing decisions is likely to hit the top of your priority list in the near future. Procurement optimization maintains the momentum, keeps your people on the same page, and ultimately saves your business time and money.

But, if you’re completely new to this, it may be a little hard to see how you can effectively use the strategic sourcing to your benefit. Figuring out how to become involved in the strategic sourcing process may be difficult. Keep reading to see why optimizing sourcing decisions is vital for your company, and what it means.

Optimizing Sourcing Decisions for Your Business

Photo by Thomas Kelley on Unsplash 

What is Strategic Sourcing?

Sourcing generally includes selecting and managing suppliers. But, strategic sourcing is a bit deeper than that.

Strategic sourcing is a more interactive process involving gathering data, expenditure analysis reports, and consumer research to find suppliers and establish connections with the ideal fit for your needs.

Why is Strategic Sourcing So Vital?

Small businesses, in particular, may be hesitant to utilize strategic sourcing because it needs a small investment in strategic sourcing solutions and expertise.

The real benefits of strategic sourcing, on the other hand, far outweigh this cost. The following are some of the advantages of using strategic sourcing systems:

  • Improving bottom line. You’ll notice a difference in your bottom line after fully implementing strategic sourcing solutions. This covers charges for operations and control. It’s because analysis reports will allow you to closely monitor your spending.
  • Lowering risks. Risk reduction and management are made easier using strategic sourcing tools and procedures. Analytics platforms help you see your spending more clearly, correlate it with risk, and reduce future risk.
  • Boosting morale. Most strategic sourcing systems need less time and effort to complete a complete sourcing event, which frees up people’s time and gives them clarity.
  • Supplier management. Transparency and cooperation (with effective strategic sourcing solutions) help us develop better connections with suppliers over time and increase transparency within the internal system.

When you combine all of these advantages, you will ultimately waste less time and make far more money, which is a primary goal for all small and large companies.

Bottom Line

So, there you have it. These are just some of the benefits of using a strategic sourcing solution. Of course, with all the solutions and systems on the market, it’s vital for you to find a reliable option that is exactly tailored to your needs and goals. This is exactly what we offer at Penny. We have a wide range of strategic sourcing solutions that can help you stay ahead of the curve. So, don’t hesitate and contact us!



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Frequently Asked Questions

Penny is a cloud-based Procure-To-Pay system. penny helps you digitize and manage your full procurement cycle from request to approval. Manage RFQs to vendors, compare quotations, send POs and even payment. penny was designed to make things easy and consolidate all of your organization’s spending needs into one intelligent system.

  • Allocate, manage and monitor budgets by expense accounts, projects, departments, location, teams..etc 
  • Streamlining procurement means requests, approvals, and POs won’t be lost in emails or offline.  
  • History and records of requests and purchases can be extracted and tracked easily via the platform. 
  • Product requests are more accurate through the catalog, and hence avoid purchasing mistakes.
  • Reports and analysis can be extracted from the platform, giving you a consolidated data center for all your procurement activities.
  • penny is cloud-based and an easy to use platform. The action-board gives your team a user-friendly and simple experience.

Yes, penny is designed to handle complex procurement operations. We make EVERYTHING simple. Via the contract management feature, you can set the terms and conditions of your contract, and the system will recognize the products and the vendors of your request and match it with specified terms of your contract. Easy.

Putting you in control of your spending is integral to our mission. penny allows you to create Expense Accounts that match your P&L, and assign budgets to them. For example, you can assign $X for your “Travel Budget” and reflect on the budget before approving a travel request. In addition, penny allows you to set budgets for cost centers like projects, departments, locations, and so much more. With penny, you can extract reports and view your spend per Expense Accounts or cost center.

Yes. If your product search finds no results, you can submit a non-standard request.

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