My co-workers in the 'Go to Market' team asked for my help with the topic of supplier discovery. I'm always excited when I get the chance to lend a hand! But before I could help them, I had to help myself. I turned for a preparatory chat with an expert - my 12-year-old junior! And voila, this blog is the result of our little pow-wow. Sure, my son got tired of me blabbering about suppliers, but that endless gibber churned out this blog post!
So, let us start...
Imagine being a detective, like Sherlock Holmes, always on the pursuit for clues. In the world of sourcing, it’s analogous, but instead of pursuing for clues, you’re on the chase for great suppliers. A thrilling pursuit, but certainly not as straightforward as riding a bicycle downhill!
Supplier discovery is like identifying a friend in a huge crowd. You must trace them, check if they are the real, and see if they can be really trusted.
Based on a survey conducted by Thomasnet, approximately 50 percent of all purchasers have experienced a situation where a supplier they collaborated with unexpectedly ceased operations.
It's not just about finding a supplier, but also figuring out if they're reliable, follow the guidelines, and won't let you down. It's like solving one of Holmes' so-called "elementary" mysteries!
Many companies continue to use outdated methods like spreadsheets and even paper (dare I say that) for supplier discovery - like limiting Sherlock to a typewriter in a digital age. However, success lies in working smart not hard. Those who adopt modern, efficient techniques for supplier discovery often reap significant rewards.
Much like Watson and Sherlock make up an unstoppable team, Artificial Intelligence (AI) operates as our reliable partner in the sourcing process. Consider AI as an intellectual giant, analyzing loads of data and selecting important information. This resourceful assistant helps us quickly find, verify, and monitor suppliers, giving you the freedom to relax and savour some lemonade!
Highlighting some of these smart tools, let's talk about SAP Ariba's sourcing and supplier discovery solution. Think of it as Sherlock's magnifying glass, picking out hidden details. It uses powerful tech to locate suppliers, making sure they meet all necessary regulations, preventing any nasty surprises.
Then, we've got Scoutbee, a solution powered by AI. Like the nimble bee it is named after, Scoutbee can work effectively with SAP, buzzing through complex info and finding the best suppliers globally. With ability to save time and make tough decisions easy-peasy, Scoutbee is like Sherlock’s brain in the form of a tech tool! Watch this video to learn more.
But why all this hoopla about supplier discovery? Well, just how Sherlock solving mysteries makes his clients happy; a great supplier discovery equals happier shareholders in the end. You might wonder why? Because it ensures money is used wisely, reduces risk and supports new ideas. All these lead to increased value for shareholders, making their smiles wider. It's like turning a tricky task into a 'piece of cake'.
Still unsure? Let's invert. Imagine a world without technology impacting the supplier discovery process.
- Finding and examining potential suppliers could require the endurance of a turtle's race and cost as much as building a pyramid.
- You then encounter a data malfunction, dishing out unreliable and confusing information, leading you to choose a supplier with the reliability of a chameleon’s color.
- Ever encountered supplier fraud? It's as sneaky as a ninja in the shadows.
- Lastly, the catastrophic tragedy? Your 'trusted-supplier' who should have saved the day goes unnoticed, akin to trying to spot your favorite toy in the world's messiest playroom - without a flashlight.
Alright, let's hit the brakes on this imagination roller coaster and buckle up for a thrilling ride down Fact Street!
Heidelberger Druckmaschinen AG, a world-leading company for printing machines, sought alternative suppliers for a rare cast metal part after the relocation of its previous supplier. The company deployed Scoutbee, which identified 2,616 potential suppliers, of which 95 met standards for a longlist and five made it to the proposal stage. The process was completed in just 10 weeks. The use of Scoutbee's AI-driven suite allowed Heidelberger to screen an entire market, trust suppliers based on accurate data from Scoutbee, and avoid unnecessary on-site visits.
In another instance, using Scoutbee's supplier discovery, Audi AG pivoted from diesel to eco-friendly towing vehicles. The quick process yielded a longlist of 57 potential suppliers, seven proposals, and saved substantial costs in just seven weeks. The Scoutbee-driven method, requiring only six hours from the purchaser, screened 180 times more suppliers than usual methods.
In a nutshell, supplier discovery may not turn you into the next Sherlock Holmes, but with tech like SAP & Scoutbee empowered with AI, it's no longer a mystery that only a super detective can solve. So, grab your detective hat, dust-off your magnifying glass, and let's crack the case of supplier discovery!
If you're still tolerating my incessant Sherlock references and think AI sounds like a super cool helper for finding the best goodies (aka suppliers) for businesses, don't be shy to ping me a message to put together a business case!
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