AI-driven supplier-sourcing for European Supermarket Buying Teams
By Mike McGrath - eSourcing Expert and CEO of Kwayga
Electronic Sourcing, a.k.a. eSourcing, is a digital business process that has fascinated me for 20 years, since my first internship with Microsoft in 2004. The use of technology and online platforms to streamline and optimise the procurement of goods and services, makes practical sense to me considering the vast amount of data involved in every business transaction between B2B Buyer and Supplier. For context and as many purchasing, sourcing and tendering terms get used interchangeably, eSourcing spans all online procurement activities relating to supplier identification, negotiation, tendering, bidding and onboarding, with post-tender and contract management steps out-of-scope.
“eSourcing spans all online procurement activities relating to supplier identification, negotiation, tendering, bidding and onboarding, with post-tender and contract management steps out-of-scope.”
Benefits of eSourcing for Grocery Buyers
1. Efficiency: Streamlined processes reduce time and effort in procurement activities, facilitating the quick removal of all admin laden tasks in the procurement process
2. Cost Savings: Competitive bidding and negotiation can result in cost reductions, due to the vast increase in competition possible by digital means
3. Transparency: All procurement-related data is accessible and transparent, with deliberate outcomes creating trust in the process
4. Supplier Collaboration: Improved communication and collaboration with suppliers is possible at all stages in the procurement process
5. Data Analytics: Data-driven decision-making through analysis of supplier performance and pricing trends, with inputs possible from many stakeholders
6. Compliance: Enhanced adherence to procurement policies and regulations, which can be both internal or external to the organisation
7. Resilience: Digital communications via sourcing platforms permit plug-and-play for new buyers to their category suppliers to become industry experts in minutes
8. Supplier Benchmarking: Digital means allows buyers to expand their supplier reach, and removes blindspots in their supply chain. Additionally, this quickly facilitates a thorough review of the market in minutes not months!
In the past and thankfully in decreasing reports, eSourcing was often maligned as being purely an eAuction / Reverse Auction tool. These tactical tools have a place in vast price-driven markets, but eSourcing now has a wider remit than simple online auctions for suppliers to compete to offer the best price. With developments in AI, eSourcing platforms are now smarter and insight-driven to create collaborative spaces for B2B Buyers and Suppliers to develop partnerships throughout the sourcing process.
“98% of Procurement Leaders are planning to invest in eSourcing Technology in the near future as the future of Procurement best practices lies in continued digital transformation, supplier risk management, and responsible sourcing practices.”
With Gartner predicting that the future of eSourcing will be heavily influenced by the adoption of AI and GenAI, it is imperative that smart grocery buyers leverage eSourcing solutions to reap the benefits listed above. Similar reports indicate that 98% of Procurement Leaders are planning to invest in eSourcing Technology in the near future as the future of Procurement best practices lies in continued digital transformation, supplier risk management, and responsible sourcing practices.
Kwayga is at the forefront of this digital transformation for Supermarket buyers as summarised in this 90-second video.
