External Supplier Search

Supplier Discovery (External Supplier Search)

Requests for goods or services can originate from the organization to fulfill day-to-day needs or in preparation for contract expirations. In both scenarios, procurement teams must identify suitable suppliers for their RFx.

Companies will embark on an external supplier search to expand their network of partners, access specialized expertise, diversify sources, and optimize cost-efficiency. This proactive strategy mitigates potential risks, enhances resource allocation, and capitalizes on successful past collaborations, aligning with a strategic and budget-conscious approach to procurement.

Current Process:

With technological changes, access to information, and the need for competitive pricing, procurement teams are encouraged to identify and invite new prospective suppliers. This is a tedious process as procurement teams have to search online, followed by multiple meetings to gather an understanding of their product line and production capacity to see if it can fit the demand. Currently, the search for external suppliers may be performed in various ways, such as:

• Google searches
• Data collected through conferences/trade shows
• Engagement market intelligence suppliers
• Leveraging personal networks

The Challenge:

• Time-Intensive Search: Manual online research and resource-intensive meetings consume valuable time in supplier identification.
• Inefficient Matching: Difficulty in aligning supplier capabilities with specific demand needs can result in suboptimal partnerships.
• Limited Visibility: Overreliance on personal networks may restrict the discovery of innovative suppliers, potentially missing out on competitive advantages.

AI Supplier Discovery using Veridion:

Veridion can help you identify new suppliers across the globe using natural language queries. This allows for searching at a category, features, capability, part number and sourcing for new product development, risk mitigation purposes, or generating competitive bids within seconds.

Benefits:

• Discovering alternative suppliers quickly helps mitigate supply-chain risks.
• Discovery tasks that would take weeks and months can now be accomplished in a matter of hours, enabling rapid response to changing supplier needs.
• Ability to quickly expand your supplier network globally, providing access to a broader range of suppliers and capabilities, fostering innovation and diversification.