Tag: E-Sourcing

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Top Trends in the Global Cloves Market

Clove is a versatile spice that is extensively used to flavor curries, meat, and fruits, in addition to being used as an aromatic agent in hot beverages. The crop is commercially harvested in Bangladesh, India, Indonesia, Pakistan, Sri Lanka, Madagascar, and Zanzibar. Cloves are widely used as a home remedy to alleviate general gum pain as it contains a significant amount of an active component called eugenol. Additionally, it also aids in digestion, protects the liver, boosts the immune system, and fights cancer. Due to their unique taste and aroma, cloves have been extensively used in personal care products such as toothpaste, perfumes, and mouthwash. The demand in the global cloves market is increasing due to requirement from food and beverage industry and healthcare industry for medicinal and therapeutic purpose. According to a procurement market intelligence report by SpendEdge on the global cloves market, the total production volume is estimated to be around 153.5 thousand tons currently which is growing at a steady rate.

Request Free SampleTrends in the global clove market

Rise in import to developed regions

The rising popularity of cloves has driven the demand from developed regions such as the EU. The import in EU has continued to grow despite the economic recession and rising commodity prices. This is because clove marginally affects the final cost of the food in which they are used. As a result, the demand for clove is relatively inelastic. In 2017, notable suppliers of clove from the developing countries to the EU were Indonesia accounting for 32% of the regional consumption, followed by Madagascar, Comoros ,Tanzania , Brazil , and Sri Lanka.

Preference for Organic Clove

Today, consumers are highly conscious of their health and lifestyle choices. In a bid to maintain a healthy lifestyle, people are turning towards organic foods. Similarly, demand for organic food ingredients, including clove, is on the rise. Traditional clove farming typically includes the use of various pesticides and chemicals leaving a residue of the chemicals in the processed cloves. As a result, consumers are demanding organic clove which does not contain traces of any chemicals. Using the organic tag to depict various health benefits will drive the consumption of naturally grown ingredients.

Preference for Branded Cloves

Cloves were usually sold in unbranded packages or in bulk. This trend seems to be shifting as consumers demand branded and packaged products which validate the authenticity of the spice, where labels communicate important information about the ingredients used. Health-conscious consumers usually look at the labels before making the purchase decisions. Unbranded clove is still popular in rural areas as these are directly sourced from small and medium-scale spice producers. This trend is most relevant in countries like Indonesia and Madagascar where clove trees are grown and clove production takes place on a large scale.

Use of steam sterilization technology

Microbes and pathogens like salmonella, yeasts, molds, and sporeformers often remain in clove after local processing due to treatment at low temperatures and simple processing. Steam sterilization naturally eliminates harmful bacteria by exposing the clove to saturated steam at high temperatures, i.e., 249.8°F to 273.2°F. The supplier can earn a significant premium if their product is steam-sterilized. However, such equipment is very costly where prices can go as high as $1.1 million. The major drawback of steam-sterilization is that it reduces the volatile oil content in cloves that is a key element influencing the flavor profile of the spice.

Read more about the trends in the clove market along with supply market insights, pricing insights, procurement best practices, key suppliers, and procurement challenges in SpendEdge’s upcoming report on the global cloves market.

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IR23

Procurement Technology that can Redefine the Future of Supply Chain

The constant influx of innovation in the field of sourcing and procurement has simplified the lives of supply chain professionals by eliminating burdensome paperwork and facilitating and automating both complex and simple tasks. E-procurement tools and various other procurement technology solutions significantly benefit the organization by allowing greater productivity, visibility, and cost efficiency. Although old-school techniques such as supplier relationship management and category expertise remain relevant today, the new procurement technology systems are transforming the way businesses approach contract management, supplier negotiation, reverse auction, and category management.SE_Demo2

Mobile Procurement
Given that the procurement professionals are always on the move and demand instant information, mobile procurement applications can empower them to drive greater results and value. Such applications help organizations streamline their procurement process with features such as on-demand notifications, purchase order creation, and real-time analytics from a mobile device. Procurement professionals can conveniently compare and request items from anywhere saving them time and providing them full visibility on suppliers.

Digital Signatures and Certificates
Digital signature certificates make the e-tendering process possible by its ability to access buyers information or services online and ensuring security. Digital signatures eliminate the lengthy paperwork and allow for contracts to be carried out within minutes. Additionally, such procurement technology can also facilitate automatic contracts and ease the RFP processes along with simplifying the purchase order.

E-Catalogues
Unlike traditional product or services catalog, e-catalogs are interactive and can store enormous quantities of items that can be organized and classified into different categories as per requirement. Electronic catalogs can be easily edited and modified on a recurrent basis and help convert inquiries into order resulting in substantial cost savings.

Migration to Cloud
Small and medium business enterprise are migrating to cloud technology to enjoy the benefits of procurement technology solutions without having to make heavy IT infrastructure investments. Businesses are opting for Software-as-a-Service (SaaS) model for their procurement needs. Such digital procurement platforms provide value that in-house solutions cant match. Also migrating to the cloud can reduce the overall costs and provide flexibility and scalability to the organization.

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E-Sourcing Tools: The Guide to Finding the Right Solutions for SMB’s

The application of digital technology in the procurement process is relatively a new concept. Large corporations have the resources to overhaul their infrastructure to implement digital technologies that can considerably boost their procurement and sourcing performance. A majority of them are relying on e-sourcing tools to efficiently connect, screen, and shortlist suppliers irrespective of time or location. However, small and medium businesses (SMB’s) may not have the necessary resource to spend on a dedicated IT infrastructure to adopt e-sourcing solutions. So, they will have to look for other ways to reap the benefits of e-sourcing.SE_Demo2

The Standard Platforms
The current e-sourcing providers such as Ariba, Coupa, Oracle, SAP, and Proactis offer their services to large corporations to help with their sourcing needs. The business need of SMB’s would differ from that of large corporations, and such standard platforms might not be able to scale down to cater needs of SMB’s efficiently. SMB’s require e-sourcing solutions which provide them access to deals and pricing that might not otherwise be available.

Finding Right E-sourcing PlatformE-Sourcing SaaS Tools
The market is overflooded with numerous e-sourcing platforms, but the buyer will need to evaluate them on the basis of negotiation facilities, databases, and interfaces offered. The platform’s customer service could be analyzed by simply resolving all sourcing queries with the vendor before buying. One thing businesses should consider while choosing the e-sourcing platform is that the cost of the tool rises along with the available features. Additionally, such tools will also consume a significant time and effort to integrate into the daily sourcing practices.

Why SMB’s Refrain from Investment in E-sourcing Tools?
SMB’s generally refrain from investing in e-sourcing platforms as they realize little gains in terms of sourcing savings opportunity compared to the investment. Additionally, they do not have the luxury of huge cost saving opportunity as in large organizations with massive spend across multiple direct and indirect category. Finally, SMB’s hardly invest in dedicated procurement professionals who would possess the expertise to utilize such e-sourcing tools.

E-sourcing solutions for SMB’s
Every firm looking for scaling operations and growing rapidly should be concerned with procurement activities. Although the cost of standard platforms can be too high, many firms are rising to such challenges by offering low-cost, simplified, and standalone e-sourcing software. Many vendors have leveraged the software-as-a-service (SaaS) model to provide cost-effective solutions to SMB’s. Such solutions offer the SMB’s to enjoy the benefits of traditional platforms without worrying about the hosting cost, IT costs, and resources. They provide multiple features to the businesses such as automatic supplier qualification, supplier registration and profiling, and invitational bidding. It also ensures privacy and security of organizational data and information by storing and hosting in the cloud.

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Why Should Your Organization Focus on Procurement Management?

The modern business environment has grown increasingly competitive and much hype has been placed on procurement management to achieve that competitive edge. So, it raises a fundamental question – Is all the hype given to procurement management worth it or are business executives overly emphasizing the business function? This, in turn, questions an organization’s strategic focus on procurement management. Apart from the preconceived notion that procurement management results in cost savings, it can also create a competitive advantage by improving customer satisfaction, time-to-market, and organizational efficiency.

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It Ensures Compliance

Multiple rules and regulations govern the corporate sector. Organizations should strictly adhere to such rules or risk getting charged with hefty fines and damage their brand name. Even though procurement may seem concerned only with purchasing activities, it ensures that the organization complies with all regulations across the global locations.

It Supports Strategic Vision

Every organization is guided by its long-term strategic planning. Procurement management assists an organization in achieving its strategic goals. For instance, an organization might have a goal to create the best-in-class product. Procurement teams can develop ideal product and part specifications and help identify suppliers who can provide them with high-quality materials. Procurement management helps in understanding the tactical needs and requirements of an organization to maximize its ROI.

It Enhances Supplier Relationship Management

Procurement teams work hard to develop a long-term relationship with suppliers to get the best products at theRequest Demo best price. Procurement management goes one step further and helps integrate the suppliers as partners to assist in value creation process.

It Increases Organizational Efficiency

Procurement management ensures the best match to needs with desired goods or services. Also, it helps maintain the quality of goods and ensures timely delivery. A dynamic procurement practice will help an organization in adjusting to market volatility such as price changes, economic volatility, labor shortage, and financial problem. Optimal forecasting can help the organization better prepare for rough roads ahead.

It Improves Cost Savings

One of the most important function of procurement is to improve cost savings. Procurement teams analyze the product across multiple suppliers scattered across vast geographies and identify the best option to balance the cost and quality as required. Procurement management is one of the biggest reasons why retail firms like Walmart and TESCO can maintain highly competitive prices despite massive infrastructure and overhead costs.

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Sourcing Analysis Helps a Car Accessories Manufacturer to Streamline Procurement Efforts

Category Overview

The global car accessories industry is expected to witness significant growth in the coming years as it is primarily driven by the increasing demand for cars and increasing inclination towards vehicle customization. According to SpendEdge’s specialists, it has been noted that the high cost of quality car accessories is one of the factors restricting the growth of car accessories industries as advanced technologies are pricier than the conventional accessories. As a result, many car accessories firms have started adopting strategic sourcing studies to standardized, centralized, and streamline their procurement process.

Moreover, the strategic sourcing studies offered by SpendEdge, help car accessories manufacturing firms decrease turnaround time for their procurement processes.

The Procurement Pain Point and Insights Offered

A leading car accessories manufacturing firm wanted to achieve effectiveness and efficiency through standardization, centralization, and spend management capabilities while tracking key savings metrics. They also wanted to establish a flexible and fast resource deployment model and improve the productivity of internal operations. Furthermore, the client wanted recommendations on metrics and standardized reporting tools. request free proposal

To cater to the specific category requirements of the client, the strategic sourcing specialists at SpendEdge carried out a blended research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies.

During the course this strategic sourcing study, the client was able to achieve a centralized and standardized procurement process. Additionally, the client was recommended tools and processes to establish a quick strategic procurement process. This helped the car accessories manufacturer achieve significant cost savings.

Key questions answered in this strategic sourcing study include

strategic sourcing

Business Outcome

The strategic sourcing study helped the client create and implement processes and tools to identify and leverage opportunities for strategic sourcing. Additionally, the client was able to significantly streamline their firm’s procurement efforts. Furthermore, the client was able to streamline numerous operations across their suppliers and reduce costs.

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E-Sourcing: An Essential Component in Devising a Good Sourcing Strategy

E-sourcing is simply the digitization of the sourcing process which involves consolidating proposals, quotes, and e-tenders from various suppliers. Traditional sourcing processes are time-consuming and tedious and are unable to handle a large volume of information. As a result, sourcing of goods and services is carried out with limited available information and is based on the relationship with the supplier. However, the advent of modern technology has changed this trend as organizations have now realized the cost saving potential of a good sourcing strategy.

Implementation of an appropriate e-sourcing tool can help optimize productivity and lower annual spends in the following ways:

More Data Leads to Informed Decision Making

Data and information on supplier prices and offerings are easily recorded within the e-sourcing application, which also facilitatesGet more info digital quotations, catalogs, and e-tenders. A procurement manager is equipped with vast information to base his decision on as it enables him to invite multiple bids from different suppliers, analyze product and price offerings, and contract terms of multiple suppliers. The data collection process should start right from the spend analysis, which gives the procurement manager information on most important categories and best cost saving opportunities. This paves the way for e-sourcing project selection by evaluating top opportunities with regard to organization goals and Time to Value (TTV).

Cost Savings and Improved Efficiency

Access to a large number of suppliers, analysis of their offerings, and process digitization helps organizations maximize on cost-saving opportunities. It also speeds up the procurement process by reducing the time for the tender process, reducing the person hours required for sourcing and procurement activities, and eliminating lengthy paperwork.

Improvement in Supplier Relationship

E-sourcing provides transparency in transactions between buyers and sellers as suppliers can have a glance at all tender opportunities with all the details listed. The communication delay is eliminated as suppliers are fully aware of all the bids and tenders, which are directly processed through the portal. Since e-sourcing eliminates all geographical barriers, procurement managers can look forward to suppliers from much larger geographies.

Better Compliance and Risk Reduction

Digitization and systematic approach of e-sourcing eliminates lengthy paperwork for contract compliance adherence – facilitating internal audit. With the help of e-sourcing, procurement managers can create templates for sourcing activities, which ensures adherence to policies and conditions.

A purchasing manager is presented with a vast amount of data and information for his sourcing needs. It paves the way to devise a better sourcing strategy by helping the purchasing manager to decide on the appropriate RFx document.

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  2. Strategic Sourcing and Supply Market Intelligence – Best Friend’s In The Making?

 

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