Best Strategic Sourcing Software in India for 2023

It is easy for any business to get confused in selecting the perfect strategic sourcing software amid the rush of multiple options. With every software marketed with the purpose of greater than the other, it is not wise to go for a single option without having a checklist of the must-to-have features. 

There is no solution called one-fit-for-all, and hence, we bring a detailed buyers’ guide for choosing the ideal strategic sourcing solutions according to your business needs. We’ve focused on a clear understanding of this modern software that handles the strategic sourcing software, key features, benefits, market trends, and the top five rank-holding options.

What Is Strategic Sourcing Software?

The e-sourcing software or sourcing software or the strategic sourcing software focuses on automating the information gathering that is crucial in completing the purchase process. It comes as the specific e-procurement software currently used in the procurement divisions of multiple companies. 

Some of the leading strategic sourcing tools offer a unified portal for inviting bids or quotations from multiple suppliers, compiling the information in a single repository, comparing figures side-by-side, increasing supplier competition, and cost savings in every decision making. 

The overall efficiency of the supply chain system increases as all the data is viewed and managed in real-time only. It focuses on the information gathering that is crucial for making multiple purchases. It further focuses on the monetary aspect but is backed with data and selecting the best service provider out of the available options based on goods or services.

Common Features Of Strategic Sourcing Software

No single software can indeed match the procurement needs of different businesses; it is important to set a benchmark for features. Hence, some of the essential elements that must be a part of any strategic sourcing software are:

• Bids or quotes creation: Any strategic sourcing platform must create an RFQ quote inviting quotations from different vendors. This invitation for the bids allows the vendors to express their interest and costs corresponding to the required products or services.
• Contracts management: Any strategic sourcing software must offer dedicated contracts management to administer, create, and execute the contracts. It must make a reliable link between the vendors, partners, and customers.
• Spend analysis: It is essential to gather, group, identify, cleanse, and categorize the data spending. It aims to improve efficiency and decrease procurement costs with decisive decision-making. 
• Supplier management: It evaluates if the suppliers are performing according to the organizational needs and identify the critical areas for improvement. Other supplier management parameters of the strategic sourcing process include vendor profits, customer satisfaction, account competitiveness, etc.
• Request for Proposal (RFP): A dedicated document invites proposals through a clear and transparent bidding process. The process of informing bids, funding announcement, and a detailed process that outlines contract terms, bidding process, etc.

Evaluating Strategic Sourcing Software

The different parameters under focus in the strategic sourcing software may create issues in product evaluation. Some key factors include spending analysis, request management, supply chain planning solutions, or other additional features. Hence, it is important to evaluate this technology based on specific use case needs.

All you need to do is look for the impactful answers to the following questions before deciding on the strategic sourcing services:

• How does the software update the supplier database, and how soon is it accomplished?
• What extent of supplier information is offered by the strategic sourcing software?
• Does the strategic sourcing software works independently or want the dedicated procurement software or detailed supply chain management system?

Does the strategic sourcing technology focus on a single area like contracts management, spend analysis, etc., or offers a comprehensive solution for overall technology needs?

Benefits Of Strategic Sourcing Software

The key benefits of having a strategic sourcing platform are:

• Finding the suitable suppliers for the right materials: The strategic sourcing solution helps companies find the ideal vendor based on the costs, product quality, delivery time, etc. The AI-based tools help companies find the right supplier according to the materials based on different decision factors. Hence, it improves supplier relationships and helps manage risks in the sourcing process.
• Cost savings tracking: The procurement cost savings are best managed as the strategic sourcing solutions focus on the total cost management, supply-based management, purchasing demand management, etc. Comprehensive cost management takes care of the total ownership costs through the inventory costs. The supply-based management helps businesses keep insights into suppliers by increasing the competition, restructuring the supply chain, and restructuring the vendor relationships. The purchasing demand management takes care of reducing finance consumption, improving the product specifications, and expenditure consolidation.
• Automating speed analysis and progress tracking: It is easy to record the gap between the savings claimed by the procurement team and the finance team. All the data thus created is converted into a savings pipeline, identified savings, etc. It is possible to track and share different ideas across the teams using the strategic sourcing software.
• Business intelligence and trend analysis: All the progress tracking and speed analysis are incomplete without the practical business intelligence tools offered by the strategic sourcing tools. The real-time dashboard updates help identify the high-performing goods and assist in procuring these goods effectively. Hence, it becomes easy for businesses to analyze the business environment and identify the market micro trends.

The 5 Best Strategic Sourcing Software For 2022

1. SAP Ariba: It comes as a top strategic sourcing solution provider perfect for large and small businesses. It is ideal for key functions like sourcing, procurement, and payables. Some of the key features of SAP Ariba include improved agility, accelerated digitization, supply chain continuity, and cost reduction.
2. Precoro: It is a top choice in the strategic sourcing services that reduce expenses, coordinate the purchasing process, and eliminate the error-prone manual work. The key features of Precoro include purchase requests, status indicators, limitless products catalog, mobile-ready approvals, approved policies, custom workflows, real-time data management, 120+ customization fields in reports, 20+ filters in reports, etc.
3. RFP360: It is the popular strategic sourcing software that helps businesses centralize the RFx process, evaluate responses, and offer a single digital workplace. It supports quick project completion, simplifies collaboration communication, assists in informed decisions risk management, and drives vendor engagement.
4. Workday: It is a preferred strategic sourcing technology that is used by leading MNCs globally for managing their sourcing processes. It offers a simple, intelligent, and streamlined sourcing workflow according to the business needs. Its key features include sourcing pipeline, contract management, supplier management, RFx, reverse auction tools, etc.
5. Coupa: It is one of the widely used strategic sourcing software that allows businesses to get the best benefits of cloud technology. It is available in the web version and helps automate the manual processes while maintaining an electronic record.

Market Trends In Strategic Sourcing Software

Some of the top-grossing market trends in strategic planning software include:

• Mobile devices compatibility: Mobile access is one of the essential future needs of sourcing professionals. It not only adds flexibility to the sourcing process but accelerates the sourcing department's work. The mobile device compatibility of the strategic sourcing software allows any time, anywhere access to the sourcing details. The key stakeholders can stay updated about the recent developments in the process and reduce the pressure on infrastructure.
• Increasing participation of stakeholders: Gone were when businesses used to go with the technology that is rich in features. The time is to go for the defined objectives and goal achievement using different available sources. Not to miss is the active participation of the stakeholders that takes hold of the pre-built features that may not fit specific business needs.
• Cloud technology: The advanced cloud technology eliminates the dependency on the hardware and infrastructure that adds flexibility to the strategic sourcing process. It is easy to implement the cloud technology sourcing software available on a subscription basis and hence eliminates any strains on the company’s operational budgets.