subject: Supplier Discovery Evolution: Moving Beyond Static Directories And Search Engines [print this page] Supplier discovery needs to evolve from its current operational state and contribute towards making the sourcing process more strategic. A single platform enabling the entire cycle from vendor discovery to vendor short listing could be the launch pad for this transformation
A pressing need for any sourcing professional today (and historically as well) is to find the best sources of supply, in the shortest possible time. Also with unprecedented number of supplier bankruptcies in the past 18 -24 months the need to have ready an alternate source of supply has become very potent. Balancing the need to find sources of supply that can be reliable and sustainable as well as ensuring that there are no undue delays in the sourcing cycle can be a challenge.
Sourcing professionals are constantly on the look out for alternate sources of supply. As far as using online tools for vendor discovery are concerned, almost all available options fall under two categories:
1. Search engines
2. Online supplier directories or B2B marketplaces
Many sourcing professionals generally go online for discovering suppliers for non strategic items.
Searching for suppliers on generic search engine might not be the most efficient way to discover new vendors, although it might be the easiest. Search engines generally provide results that are close to or related to the categories that you are looking for, although these results might not be relevant enough for you to drive an efficient sourcing event/process. Also even if you do end up discovering relevant suppliers, the entire process of connecting with them as well as viewing and comparing multiple suppliers for a single category happens through disparate mediums. This is how a typical supplier discovery process would work through a Search Engine:
Search for the suppliers on the search engine
! Visit individual supplier websites.
! Connect with the suppliers through either disparate phone calls or send RFIs/RFQs through emails and then
! Receive their responses on disparate emails/faxes for comparison
Tedious and time consuming - even typing that down was an endeavor! Yet the majority of all sourcing professionals follow this sourcing activity.
Content on online directories is classified based on products, locations, supplier revenue and several other parameters that help sourcing professionals get results that are most relevant to their needs providing much of the relevant supplier information on the website itself. This helps in comparing the information for a number of suppliers on a single platform eliminating the step of going through individual supplier websites to make an informed decision.
The need of the hour actually is to go beyond the conventional B2B marketplace. The need is for a marketplace that not only lets you discover and get detailed information about the supplier but provides a fully functional interface to create an RFX as well as receive and compare supplier responses- in short it helps you to not only discover vendors but helps you interact with them and shortlist them on a single platform. Easy and convenient, this helps you to reduce the sourcing cycle time considerably. You get the supplier intelligence to make the right choice, can drive the sourcing process forward by creating RFXs and make more informed and intelligent decisions by comparing supplier responses. What this does is help you focus on the more strategic aspects of the sourcing process like negotiation and supplier management.
The transition to these evolved market places has already begun with several websites moving towards the provision of supplier discovery to supplier short listing on a single platform. What these providers need to realize is that the whole process needs to be made very easy and intuitive. Unlike enterprise software the time available for online solutions to garner attention and adoption is very limited. No matter how tedious and inefficient, directories and search engines are very simple and easy to use. Getting sourcing professionals and buyers to transition from these mediums is the first obstacle that any online marketplace will face. The key is to keep in mind the end objectives of the user-in this case a buyer/sourcing professional whose primary aim is to get the best deal in the shortest possible time.
Understand this and provide a solution that on a single platform completes his entire sourcing process-thus shortening his sourcing cycle time. Provide enough intelligence on the supplier
(Allowing suppliers to provide company details, credit ratings, certifications, customer references can be a primary mode of providing the best information) where by he can search for and shortlist the best possible provider according to his needs thereby enabling him to get the best deal. If this can be done and communicated effectively the process of supplier discovery will complete its evolution to going beyond an operational activity and be the first step towards a more intelligent and strategic sourcing process.
