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From supply chain veterans to Procurement neophytes, nearly every industry professional would agree that the sourcing process is often a needlessly convoluted one. When companies waste time and effort putting together overloaded RFx documents, they set themselves up for inefficiency and exhaustion throughout every stage of their sourcing initiatives.
As a Procurement Transformation specialist, Associate Director Jennifer Ulrich has witnessed first-hand what inefficient processes and can do to an organization. She joins the Source One Podcast to advocate for a simpler, more streamlined approach to Strategic Sourcing.
She is quick to emphasize that simplifying Strategic Sourcing does not mean getting lazy. Quite the opposite. For Procurement to develop an effective RFx and kick-start a successful sourcing process, the function needs to work hard to collect data and develop a clear roadmap for its initiative. This is true for project's of any size, scope, or spend category. "Laying the right groundwork," she says, "will guarantee a smoother process regardless of complexity level of the project."
While its important to gather all relevant data, Ulrich cautions Procurement teams against overloading their RFx documentation. She remarks that an RFx filled with superfluous content won't just lead to a drawn-out sourcing process, but could alienate suppliers before they've even assessed your organization.
On the subject of suppliers, Ulrich emphasizes the importance of conducting thorough research into capacity and capabilities. Oftentimes, in an attempt to cover every base, organizations distribute RFx documents to suppliers who aren't at all qualified to meet their needs. These aborted engagements are little more than a waste of Procurement's valuable resources.