Digital Organization & Vendor Scouting

What is Vendor Scouting?

In the last years a growing number of companies trying to get inside new challenges regarding Digital Business. Doing this, they are using data and digital information technology system as a driver for business. This trend is going to increase, and a Digital Business Analyst must have specific competences. Focused on the purchasing and vendor activities, every company consider this not as confined role of simple and repetitive orders but also an indispensable process in the definition and implementation of corporate strategy. But what is precisely Vendor Scouting?

Scouting is a combination of commercialization expertise, research excellence, and proven processes for road-mapping, technology scouting, and partnership development. All of these must be applied and refined using Project Management principles.

The vendor management process is composed by the following steps:

  • Establish Business Goals: you have to know what it is that you are trying to achieve. Business goal definition is the key;
  • Choose the Best Vendor: choose a stable vendor who worked in the similar environment, with the extensive experience or standardized on economies of scale;
  • Manage Vendors: this is the daily activity of monitoring performance and output. It’s the best way to make sure that the terms of the contract are being fulfilled;
  • Consistently Meet Goals: managing the vendor regularly to better influence them to meet performance objectives on a regular basis.

Through Project Management the companies can handle all data circulating on the net. This is necessary for the success of each project, but also adds another layer of complexities to managing it. We have to consider that the reason why companies do market analysis and research, is to enlarge their activity and increase their profits. In this scope sourcing, like scouting, takes time which is perhaps procurement’s most precious asset. How do you find the time?  It is surprising how much initial scouting and sourcing work can be automated, allowing more time for in-depth supplier analysis and evaluation. Scouting is the process of supporting organizational development, learning, improvement and innovation. This is achieved through systematic actionable knowledge. We can say scouting is a knowledge doctrine expressing how companies think about and uses information to increase the revenues.

If you want to strengthen your scouting without adding a lot of time, maybe it is time to look at supplier registration, prequalification, and sourcing automation solutions. Sourcing automation solutions are low-cost and fast to implement, they can help you reach your scouting goals.