The once slow-paced evolution of eSourcing is now rapidly advancing, thanks to the advent of autonomous sourcing.
Automating the Sourcing Process
For two decades, eSourcing saw little innovation. However, the recent years have witnessed a significant shift, with the emergence of autonomous sourcing. This new development is characterized by the automation of several steps in the sourcing process, a feat achieved through the integration of AI and RPA-type technologies.
While the extent of automation depends on the complexity of the sourcing events, tasks such as price grid setup, supplier selection, bid evaluation, and even multi-round sourcing events can now be automated. Although most organizations currently prefer to manually handle the award process, advanced solutions offer the potential for its automation as well.
Enhancing Sourcing with Cost Analytics
The past decade has seen a remarkable advancement in analytics. Vendors are now leveraging analytics to streamline and improve the sourcing process. By integrating historical spend data with market data and game theory, these solutions can suggest target pricing. This predictive pricing capability can expedite the sourcing process and enhance its efficiency for both parties involved.
Automated Negotiations: The Future of eSourcing
Taking a step further into the realm of game theory, some vendors are automating one-on-one negotiations. These bots, configured by category, use various negotiation levers to secure the best possible price. While the setup of these bots requires effort, the benefits, particularly for categories with high spend and large numbers of spot buys or small tenders, are significant.
The pace of eSourcing evolution is accelerating as vendors continue to integrate various technologies and devise new ones. The automation of tactical and tail spend, and even parts of larger, more complex sourcing events, allows sourcing professionals to focus on building relationships with key suppliers and stakeholders, and devising value-creating category strategies. The future of eSourcing is here, and it’s autonomous.
