Next Generation System Fosters Better Data-Driven Decisions Based on Entire Value Chain
Wayne, PA – October 01, 2015 – Elemica, the leading Supply Chain Operating Network provider for the process industries, announces its new Sourcing Optimization solution, enabling procurement professionals to make better sourcing decisions, which not only reduce cost but also improve the entire end-to-end value chain. With the new solution, companies can execute complex sourcing activities alongside supply chain visibility and collaboration efforts with contracted suppliers on the same platform, complementing Elemica’s portfolio of logistics, customer and supplier management solutions.
“The low hanging fruit is gone,” said Kristie Beck, Vice President of Product Management at Elemica. “Mature sourcing organizations, which have been doing traditional sourcing and category management, are starting to plateau in terms of savings and impact to their organizations, yet each year are faced with increasing savings mandates and pressure to improve performance. Elemica is delighted to be offering them next generation sourcing capabilities to help take their business outcomes to the next level.”
At the heart of Elemica’s Sourcing Optimization solution, powerful mathematical optimization algorithms allow users to quickly and efficiently evaluate complex, interdependent bids that have millions of factors, attributes and combinations. As companies move to more complex categories, they at some point realize that their standard eSourcing tool is not capable of managing large scale or complex tenders. Furthermore, the use of spreadsheets for data analysis becomes unmanageable for highly complex categories or when sourcing the end-to-end value chain.
Specifically, sourcing strategies which have complex multi-tiered global supply chains contain very large data sets, matrix pricing, total landed cost modeling, or significant non-price decision factors such as supplier innovation capabilities, performance, or value-add services difficult to quantify. These are nearly impossible to manage without a tool like Elemica’s Sourcing Optimization solution. Add in operational and business constraints across global organizations such as plant size, geographic dispersion, capacity, various fulfillment options, and more, and it becomes very difficult to analyze all of these interdependent variables effectively in a spreadsheet.
“This next frontier of sourcing takes into consideration today’s real-world complexity, is unconstrained by a near infinite variety of factors or volume of data, and ultimately focuses on making superior data-led decisions based on the entire value chain,” adds Ms. Beck.
Elemica’s new Sourcing Optimization solution is an ideal fit for organizations looking to source across the supply chain to capture more value, both in savings and operational synergies, from their sourcing strategies. Benefits include:
- High Flexibility – Enables practitioners to custom design RFIs, RFQ, RFPs and auctions to fit the needs of the categories being sourced. No more trying to “fit” your bid into your eSourcing solution.
- Extreme Complexity Management – Evaluates value chain costs where there are various cost and non-cost factors such as one tender which incorporates material costs, labor costs, distribution and transportation costs, warranties, and more.
- Powerful Analysis – Calculates non-cost parameters and scoring defined by the user to be utilized in bid evaluation. Upon bid receipt, users can create unlimited “what if” scenarios to quantify savings trade-offs based on their own unique business constraints.
- Fast Results - Reduces project cycle time from months to weeks compared to excel-based analytics.
Elemica’s team of experienced eSourcing experts helps companies reduce time to value with their market knowledge and world class technology platform. Elemica’s approach is collaborative in nature and designed to meet a variety of needs.
Elemica is the leading Supply Chain Operating Network for the process industries. Elemica transforms supply chains by replacing manual and complex approaches with efficient and reliable ones. Launched in 2000, customers like BASF, BP, Continental, The Dow Chemical Company, DuPont, The Goodyear Tire & Rubber Company, LANXESS, Michelin, Shell, Solvay, Sumitomo Chemical, Wacker and more process nearly $400B in commerce value annually on the network. Elemica drives bottom line results by promoting reduced cost of operations, faster process execution, automation of key business processes, removal of transactional barriers, and seamless information flow between trading partners. For more information, visit www.elemica.com.