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There are many necessary steps in the process of procuring products from one country that are intended for sale in another. Sourcing goods from global manufacturers, distributors and suppliers is becoming increasingly complex and time-consuming: communication between the many players is difficult and working hours are not aligned. Onboarding suppliers is a vital activity but done manually it slows down the sourcing process. Ensuring that the proposed goods are as described and that quality standards are upheld, takes more time than it should. Managing the procurement process and transactions manually using MS Excel, spreadsheets and emails is inefficient, error-prone and therefore no longer a viable option. The trend is towards digital sourcing platforms that offer centralized tools to streamline the sourcing process and improve communication.
Sourcing products from countries in the emerging markets of South America, Africa and Eurasia, as well as countries in Asia, requires detailed line planning, forecasting, tight budgeting and an efficient and repeatable methodology for the procurement process. For instance, buying teams based in Europe must research product specifications, quality and availability from a distance while having the additional challenges of language differences and varying time zones. International companies that have the benefit of basing their sourcing offices closer to their suppliers have an advantage. They can influence pricing negotiations, approval of samples, quality control, shipping arrangements and compliance. The typical global sourcing process involves buyers providing product specifications, quantity forecasts, and target prices through Excel spreadsheets and emails to sourcing offices. Merchandisers in sourcing offices then liaise with suppliers and negotiate prices and terms, primarily communicating through email, WeChat, or WhatsApp, Suppliers in turn handle their communications via email and store their data in Excel spreadsheets. Potential suppliers are also “buyers” themselves: they have their own supply chains to source raw materials, components and packaging. The items they source for the products they sell must adhere to all the quality, operational and compliance requirements of the end customers. One problem is common to all suppliers and buyers wherever they are based: poor collaboration and communication.
Manual Data Input
The reliance on manual processes for data entry across the sourcing lifecycle introduces significant risks and inefficiencies in global operations. Critical information about prices, specifications, and orders is repeatedly entered into multiple systems – from Excel sheets to ERPs – increasing the likelihood of errors at each touch point. Without automated data validation and entry systems, simple mistakes in pricing, quantities, or specifications can cascade into major issues affecting production schedules and costs. This manual approach not only consumes valuable time but also creates a high-risk environment where data accuracy cannot be guaranteed. Each step in the process is time-consuming and will result in queries and the need for clarification.
Limited supply chain visibility
The fragmented nature of traditional sourcing processes creates significant blind spots in supply chain visibility. Not only is the manual processing of data and communications error-prone, but it also slows down the purchasing cycle time and impacts workflow efficiency. There is little sharing of data, poor verification and no visibility of the status of purchases. Key stakeholders lack access to critical information about supplier performance, production status, and potential disruptions, making proactive risk management nearly impossible. The inability to track and monitor all aspects of the sourcing process in real time leaves companies vulnerable to supply chain disruptions and unable to make timely, informed decisions. This lack of visibility not only hampers operational efficiency but also limits the ability to identify and address potential issues before they escalate into major problems, ultimately affecting the reliability and responsiveness of the entire supply chain. Data, without digital tools to provide reliability, are not a useful basis for decision-making.
Communication silos: The analytics roadblock
Communications between the parties about price, product availability and timing are often concluded via channels that cannot store or share information effectively, severely limiting data analytics capabilities for strategic decision-making. Using WhatsApp or WeChat creates room for both misunderstanding and increased costs but also results in fragmented data that cannot be analyzed systematically. Critical business intelligence remains trapped in chat messages and informal communications, making it impossible to identify patterns or optimize procurement strategies. Any data that is input manually into the ERP or other financial system may be recorded incorrectly, leading to delays and wrong actions being taken. The lack of structured data collection means organizations cannot leverage historical data to improve supplier performance assessment, forecast accuracy, or make data-driven decisions about supplier selection and pricing negotiations.
Blocking Collaboration and Market Agility
Where people work in silos and there is no “meeting place” for information, innovation collaboration between the parties cannot occur. Traditional sourcing processes significantly impede speed-to-market due to their reliance on manual, disconnected workflows. The back-and-forth of Excel sheets, emails, and messaging apps creates unnecessary delays in product development, sampling, and procurement cycles. Without a centralized digital platform, simple tasks like price negotiations, sample approvals, and specification updates can stretch across weeks of communication exchanges. This approach to managing approach to manage the sourcing lifecycle not only extends product development timelines but also impacts a company’s ability to respond quickly to market trends and consumer demands. Continuous improvement in the sourcing and fulfilment process is only possible where there are shared ideas across a unified platform. In an era where market responsiveness is crucial for competitiveness, these inefficiencies in the sourcing process become a significant barrier to achieving optimal time-to-market performance.
Modern technology solutions play a crucial role in reducing time-to-market (TTM) in global sourcing by streamlining processes, enhancing collaboration, and providing data-driven insights.
Automating processes
Software solutions automate routine tasks such as processing sourcing requisitions and supplier communications. This reduces the manual errors in data input and speeds up the procurement cycle. The automation of routine processes transforms time-consuming manual operations into streamlined, error-free workflows. Cloud-based technology tools provide real-time messaging and collaboration features, facilitating faster communication between procurement teams, suppliers, and stakeholders. Most solutions are designed to be easily integrated with an ERP system.
Centralized platform
A centralized platform accessible to all approved users allows easy access to the supplier database and history. This solution provides transparency across departments, enabling quicker evaluations and selections based on criteria such as price, quality, and delivery performance. Storing all procurement-related documents in one place facilitates easier retrieval and ensures that all team members are working with the most up-to-date information. Ongoing assessment and tracking of supplier performance can help confirm dependable partners more quickly, leading to faster sourcing decisions. Important documents such as product specifications, images and contracts are shared, ensuring all parties have access to the latest information.
Enhanced Data Analytics and Insights
Advanced analytics capabilities transform raw data into analytical insights, allowing teams to make informed decisions about, supplier selection, performance, risk management and market trends, enabling more informed sourcing decisions that align with market needs. This shift from intuition-based to data-driven decision-making enables organizations to respond more dynamically to market demands, ultimately reducing time-to-market from months to weeks.
Compliance and governance
The ability to automate compliance checks maintain data integrity, and provide real-time visibility across the entire sourcing lifecycle represents a fundamental shift from traditional, siloed approaches to a more integrated and efficient sourcing operation. This ensures that all processes adhere to required standards while maintaining optimal operational speed.
By leveraging software solutions in global procurement, businesses can significantly reduce time-to-market by automating processes, enhancing communication, improving data insights, and ensuring compliance. These efficiencies not only speed up the procurement cycle but also enable organizations to respond more agilely to market demands and changes.
Topo’s innovative Sourcing Module streamlines procurement processes through
Our sourcing platform acts as a hub that fosters collaboration between buyers, merchandisers and suppliers. Transform your sourcing process with Topo’s smart software solution and maximize efficiency and insights in your sourcing operations. Streamline your supply chain: one platform, infinite possibilities. To discover more – download our Sourcing Module case study.
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