Executive Briefings

Elemica Releases New Sourcing Optimization Solution

Elemica says its new sourcing optimization solution not only enables procurement professionals to make better buying decisions but improves the entire supply chain.

At its heart, the solution's mathematical optimization algorithms allow users to quickly evaluate complex, interdependent bids that have millions of factors, attributes and combinations. As companies move to more complex categories, they at some point realize that their standard e-sourcing tool is not capable of managing large scale or complex tenders. Furthermore, the use of spreadsheets for data analysis becomes unmanageable for highly complex categories or when sourcing the end-to-end value chain. 

Specifically, sourcing strategies which have complex multi-tiered global supply chains contain very large data sets, matrix pricing, total landed-cost modeling, or significant non-price decision factors such as supplier innovation capabilities, performance, or value-add services difficult to quantify. Add in operational and business constraints across global organizations such as plant size, geographic dispersion, capacity, various fulfillment options, and more, and it becomes very difficult to analyze all of these interdependent variables effectively in a spreadsheet. 

Source: Elemica

At its heart, the solution's mathematical optimization algorithms allow users to quickly evaluate complex, interdependent bids that have millions of factors, attributes and combinations. As companies move to more complex categories, they at some point realize that their standard e-sourcing tool is not capable of managing large scale or complex tenders. Furthermore, the use of spreadsheets for data analysis becomes unmanageable for highly complex categories or when sourcing the end-to-end value chain. 

Specifically, sourcing strategies which have complex multi-tiered global supply chains contain very large data sets, matrix pricing, total landed-cost modeling, or significant non-price decision factors such as supplier innovation capabilities, performance, or value-add services difficult to quantify. Add in operational and business constraints across global organizations such as plant size, geographic dispersion, capacity, various fulfillment options, and more, and it becomes very difficult to analyze all of these interdependent variables effectively in a spreadsheet. 

Source: Elemica