Optimised sourcing is now a reality and is set to transform the way organisations interact with their suppliers.

With the advent of low cost computing, high-speed broadband communication links, and robust commercially available database and software applications the reality of optimised sourcing will have a significant impact on the supply cost structures of innovative adopters.

As leading organisations develop sophisticated internal total cost of ownership modelling capabilities for their key spend categories they are starting to understand that the traditional Request for Quote or reverse auction processes delivers sub-optimal outcomes.
The new mantra is value creation not cost reduction, and to this end suppliers should be given every opportunity to express their preferred engagement models that will deliver the most value to the organisation.

Highly 'configurable' spend categories are likely to deliver the most significant incremental bottom line impact through the application of optimised sourcing technologies.

"Aberdeen research found that enterprises using optimisation based sourcing tools negotiate an additional 12% cost savings, on average, above and beyond what they had previously accomplished using traditional sourcing methods or reverse auctions." Source - Aberdeen

The BOMweb Optimised Sourcing Platform is built on a high-powered combinatorial optimisation engine that is tightly coupled to a web based quoting interface that allows the suppliers to 'expressively quote'. Where the buyer is faced with competitive markets the optimised solution can be rolled into an advanced multi-attribute auction engine with real time dynamic feedback to all bidders.
The greatest challenge faced in light of this added supply configuration flexibility is how to make the necessary tradeoffs between suppliers that have expressed preferences around a range of price and non-price attributes, and around package or single lots.

The key to moving forward and making the tradeoffs is an advanced Total Cost of Ownership (TCO) modelling capability and a detailed total cost fact base. Questions like what is the cost to switch from the incumbent and what price movement can we secure if we reduce our quality requirement by 5% are common when organisations start to create these trade-off models for their key spend categories.

The BOMweb Optimised Sourcing platform is the first system available in Australia as a fully customisable platform that is dedicated to your organisation. Combining the 'speed of adoption' benefits of the ASP hosted model with the customisation and data security benefits of an enterprise application dedicated to your organisation. Our unique 'dedicated hosted' platform delivers the computing power required for high-end optimisation with the low implementation cost offered by the ASP model.