AI in Sourcing: Driving Efficiency and Innovation

The evolution of global sourcing has meant that organizations don’t have to rely solely on regional marketplaces. They’re able to draw on resources from every part of the world. In the process, they can realize cost efficiencies, access to innovation, broader market exposure and improved quality of products.

The Benefits

The effective management of global suppliers and marketplaces, however, requires adoption of a number of key actions, including:

Conducting in-depth research. To understand the nuances of global industries, companies must learn the capabilities of prospective suppliers, as well as the economic and political environments from which they will purchase.

Developing solid relationships. Transparency, site visits and regular communication make a supplier-buyer relationship stronger, while allowing the supplier to better understand the needs of the buyer’s business.

Implementing comprehensive risk management. Global sourcing encompasses a host of risks in the form of financial fluctuations, breaks in supply chain continuity and political upheaval. Where there’s complete interdependence within the supply structure, a risk-management strategy needs to allow for dive…