Best Value

How often is awarding business as simple as cutting a PO to the lowest price\supplier? Almost never. Typically you have to balance not only various types of proposals from suppliers but also requirements of numerous internal stakeholders and, often, supplier performance ratings. Taking all this into account and identifying the optimal solution, without expensive consultants or weeks of analysis in Excel, companies today turn to Emptoris Sourcing, with its combinatorial optimization that streamlines analysis and empowers them to identify the lowest total cost of ownership award decision.

Realize Best Value with Emptoris Sourcing

Emptoris empowers you to realize best value with some key components of its strategic sourcing solution.

• Flexible cost modeling allows you, as the buyer, to quickly adapt the RFx or auction to the unique cost, performance, and risk drivers for your category and business. Suddenly, the negotiation is not focused exclusively on price. Your suppliers have more ways to differentiate besides just squeezing their margins. That promotes greater collaboration and gives you structured insight into innovation your suppliers may bring to the table.
  
  

  Decision Factors	Traditional Sourcing	RFx with Flexible Bidding
  Item mix and lots	Fixed	Flexible
  Volume commitment	Fixed	Flexible
  Consumption pattern	Fixed	Flexible
  Payment terms	Fixed	Flexible
  Contract length	Fixed	Flexible
  Quality	Fixed	Flexible
  Delivery locations	Fixed	Flexible
  Supplier pricing	Flexible	Flexible

  
  
• Flexible supplier bidding empowers suppliers to express their capabilities and points of competitive advantage during the negotiation process. They may bundle items, provide unit volume discounts, offer business volume discounts, suggest substitutions, and express their capabilities along any element the buyer has made flexible in the negotiation from payment terms to quality.
  
  Along the way, Emptoris Sourcing can provide feedback to suppliers providing them insight on different ways they may adjust their bid to take the lead. Leveraging optimization-based decision scenarios created by the buyer, suppliers are empowered with new insight on how to better differentiate from the competition. This makes the overall negotiation process more transparent, which is good for suppliers, and provides potentially new sources of value for your organization.
• Supplier performance ratings can be incorporating into the decision-making process to improve your perspective on total cost. Used in conjunction with Emptoris Supplier Performance Management, on-time delivery, quality, customer service, and other performance ratings can be factored directly into your sourcing aware analysis.
• On-the-fly scenario analysis exposes the power of combinatorial optimization to the buyer in an interface that is easy-to-use and quick-to-learn. Individual buyers can quickly integrate business constraints and purchasing strategies into their analysis.

Learn More

Sign up now for the webcast Overcoming Common Challenges to Low Cost Country Sourcing, sponsored by Supply & Demand Chain Executive Magazine, hear speakers from Accenture and Emptoris share research, case studies, and first-hand experience on how companies can deliver on the promise of low-cost country sourcing.

Sign up now for the ISM webcast Practical Approaches to Sourcing for Best Value, Not Just Best Price featuring speakersfrom Cargill and Emptoris.

Download the whitepaper Moving Beyond Reverse Auctions for Scalable, Sustainable Value - Learn how companies are stepping up from a "one size fits all" approach with reverse auctions and are now leveraging more advanced solutions to better support their sourcing strategies.

Find out how the Emptoris solution fared in the Forrester evaluation The Forrester Wave™: eSourcing Suites, Q4 2005.

Emptoris customers have delivered substantial value to their businesses with Emptoris Sourcing. Read about real world examples of how our customers have deployed Emtporis Sourcing to achieve shortened cycle times, better cost performance and greater competitive advantage.