One of the underappreciated aspects of high-quality Supply Chain Management(SCM) is its ability to provide healthcare institutions with the capability to take a more proactive approach to sourcing. In other words, instead of working with a single manufacturer or supplier, hospitals can cast a wider net and proactively compare candidates based on a wide range of factors. By taking more time to refine requirements, evaluate options and compare different vendors and manufacturers with their competitors, hospitals can be confident that they are making the best-informed and most cost-effective decisions.
Powerful SCM solutions will also provide supplier enablement functionality. This allows suppliers to register online where they can place a competitive bid to provide a specific commodity or service — resulting in the hospital’s ability to vet pricing quickly. This type of feature cuts down on time spent talking to various suppliers and comparing pricing. It brings the information directly to your doorstep.
PeopleSoft Strategic Sourcing provides a powerful tool to enable organizations to manage the sourcing process. It allows for streamlined request-for-quote and request-for-proposal (RFx) activities to focus on finding the best value and lowest total cost supplier rather than searching for the lowest price.
So what exactly is strategic sourcing? Strategic sourcing refers to the process of determining the best suppliers for needed goods or services and the conditions under which you award them your business. The strategic element of this definition comes from the ability to apply different methodologies to create the most value in your supply chain. This value can come in the form of pricing, warranty terms, quality, delivery accuracy, or other factors. Strategic sourcing enables you to quantify and balance these requirements so organizations can achieve specific business objectives. A complete solution built on internet-based portal technologies, reverse auction capabilities, and proposal analysis tools can deliver significant value to organizations.
Some features of PeopleSoft Strategic Sourcing include the ability to:
- Efficiently add bidders with self-service registration.
- Create auction events and reverse auction events to ensure competitive sourcing events
- Author a contract document at the time of RFx creation so bidders will have full visibility to terms.
- Invite named suppliers to participate or open a purchasing event to the general public.
- Hold a sealed event in which the buyer cannot review the responses until after the submission period has closed.
- Leverage knowledge from internal experts through online collaboration while ensuring not all collaborators have access to sensitive data.
- Perform “what- if” analysis by adjusting factors, weighting, and scores and view the optimal award.
- Award these events into a purchasing application as POs or contracts.
- Save strategies and results as templates, capturing results for future use.
- Automate event notifications.
Enabling the sourcing process and its features allow for organizations to better manage and secure the best information to ensure that all factors are considered when deciding on which suppliers to utilize.
In future blog posts I will explain how, once the supplier is awarded a contract or PO, PeopleSoft SCM products tightly integrate and complement this process to facilitate managing and reducing supply spend.
In the meantime, please be sure to contact Larry Zagata if you have questions about the PeopleSoft SCM applications or ANY PeopleSoft questions.