DISCOVER
A
WHOLE NEW WORLD OF SUPPLIERS
SAVE COSTS, MITIGATE RISK, AND ACHIEVE YOUR SUSTAINABILITY GOALS
In today’s dynamic business landscape, organizations face increasing challenges when it comes to supplier sourcing, including limited access to comprehensive supplier databases, rising pressure to meet sustainability standards, and the need for proactive risk management. Traditionally, companies have relied on reactive approaches, responding only when issues arise, often resulting in higher costs and supply chain disruptions. A shift towards proactive sourcing is clearly the way of the future.
Scoutbee Discovery, integrated with SAP Ariba Guided Sourcing, offers a solution to leading global organizations by expanding access to new suppliers, enabling businesses to stay on top of their various challenges and opportunities.
Reactive vs. proactive supplier sourcing
Organizations often face challenges when relying on a reactive approach, such as higher costs, supply disruptions, and inefficient supplier relationships. Reactive sourcing limits strategic planning and can cause significant inefficiencies. In contrast, proactive procurement is crucial in today’s market. It allows businesses to optimize costs, manage risks effectively, and integrate sustainability into their sourcing strategy.
By leveraging Scoutbee Discovery, organizations gain access to a broader supply base and real-time data, enabling them to make informed, forward-thinking decisions and maintain a competitive edge.
Here, we take a look at the disadvantages and advantages in more detail.
DISADVANTAGES OF REACTIVE SOURCING
Higher costs: Without long-term planning, reactive sourcing limits negotiation opportunities, leading to higher prices and missed bulk discounts.
Supply chain disruptions: Reactive strategies often overlook potential risks, resulting in frequent shortages and delays.
Poor supplier relationships: The short-term, transactional focus hampers the development of strategic partnerships, affecting reliability and innovation.
Inefficient inventory management: Lack of forecasting can result in excess stock or shortfalls, disrupting operations or tying up resources.
ADVANTAGES OF PROACTIVE SOURCING
Cost efficiency: Access to a broader supplier base allows for better pricing and more favorable terms, reducing overall procurement costs.
Risk management: Real-time data provides a comprehensive view of supplier stability, enabling businesses to proactively manage risks.
Sustainability: Proactive sourcing identifies suppliers that meet sustainability criteria, supporting organizations in achieving environmental and social responsibility goals.
Innovation & collaboration: Involving suppliers early on fosters collaboration, leading to innovative solutions and improved products.
The Scoutbee Discovery advantage
To meet the evolving demands of procurement, organizations must move beyond traditional methods and leverage advanced tools that offer comprehensive solutions. Scoutbee Discovery, when integrated with SAP Ariba Guided Sourcing, provides organizations with a powerful platform to optimize their supplier management strategies. By focusing on cost efficiency, proactive risk management, and sustainability, Scoutbee Discovery expands the capabilities of SAP, enabling businesses to unlock new opportunities, reduce risks, and achieve their environmental and social goals with greater accuracy and insight.
1. Cost savings
Achieving cost efficiency with Scoutbee Discovery: In today’s competitive market, organizations aim to optimize procurement to control costs and boost profitability. While SAP’s Guided Sourcing offers a solid supplier management foundation, Scoutbee Discovery enhances this by scanning the entire internet to expand the supplier pool.
This broader reach empowers organizations to explore competitive options beyond SAP’s network, enabling them to secure better prices and terms. By increasing visibility, Scoutbee Discovery unlocks cost-saving opportunities that wouldn’t be accessible through traditional methods.
2. Risk mitigation
Strengthening supplier risk management: Effective risk management is vital to maintaining resilient supply chains. Scoutbee Discovery complements SAP’s capabilities by providing real-time insights from a vast and dynamic pool of suppliers.
This comprehensive view allows organizations to proactively monitor supplier reliability, financial stability, and compliance status. Integrating this with SAP gives users a holistic understanding of their supply base, enhancing their ability to mitigate risks through well-informed, data-driven decisions that protect against supply chain disruptions.
3. Sustainability
Elevating sustainability with Scoutbee Discovery: Sustainability is increasingly critical in global procurement strategies. While SAP’s platform provides valuable supplier data, Scoutbee Discovery offers an extra layer of insight by identifying suppliers aligned with specific sustainability criteria, such as green certifications and ethical labor practices.
This ensures companies always have access to fresh, up-to-date information, enabling them to integrate responsible sourcing options seamlessly into their SAP workflows. By expanding visibility, Scoutbee Discovery helps organizations meet their sustainability goals and enhance their social responsibility impact.
Putting Scoutbee Discovery to
the test:
Real-world success stories
While the advantages of Scoutbee Discovery provide compelling benefits in theory, the real value lies in its practical application. The following case studies showcase how organizations from diverse industries have leveraged Scoutbee Discovery to overcome complex procurement challenges.
Each case illustrates the impact of expanding supplier visibility, optimizing cost efficiency, and meeting sustainability targets in highstakes scenarios. From securing rare earthfree materials for EV production to sourcing specialty ingredients in the FMCG sector, these examples highlight how Scoutbee Discovery empowers procurement teams to make faster, data-driven decisions and drive strategic results.
Case study: Achieving sustainability and innovation in the automotive industry
COMPANY BACKGROUND
A prominent German automotive manufacturer was aiming to establish a local production network in the U.S. to meet the rising demand for electric vehicles (EVs) and enhance its market presence. A core requirement for this network was sourcing sustainable and rare earth-free magnets locally to minimize environmental impact and mitigate the risks associated with importing from overseas, particularly from China.
SOLUTION
With a tight timeline and limited resources, the procurement team turned to Scoutbee Discovery to find suitable suppliers. Using Scoutbee’s AI-powered search, which is tailored for procurement, the team quickly transformed complex technical requirements into actionable search terms. Scoutbee’s algorithm then scanned and filtered U.S.-based suppliers of rare earth-free magnets, providing impartial, criteria-focused results. Within 48 hours, the team had a curated list of 21 potential suppliers , complete with detailed profiles.
RESULTS
The team invited 18 suppliers for onboarding, completing the sourcing process in two days instead of the standard eight. By leveraging Scoutbee Discovery, the manufacturer achieved a supplier relevance rate of 85% - a significant improvement over traditional methods, which yielded fewer options with a relevance rate of just 20%. The streamlined search not only saved time but also increased the quality and quantity of results, aligning seamlessly with the company’s sustainability and risk reduction goals.
CONCLUSION
By securing a local supply of rare earth-free magnets, the German car manufacturer enhanced its U.S. production capacity, as well as its sustainability and competitive edge. Scoutbee Discovery’s capabilities played a pivotal role in this achievement, enabling faster production cycles, reduced supply chain risk, and lower transportation costs, all while meeting customers’ demand for environmentally conscious EV production.
Case study: Crunch time for innovation in the FMCG industry
COMPANY BACKGROUND
As a major player in the FMCG sector, this market-leading potato chip manufacturer was preparing to launch a new product, backed by a million-dollar revenue projection. The company’s commitment to continuous innovation in flavor was a critical part of its strategy, but the R&D team’s carefully crafted plan was at risk. Despite weeks of searching, the procurement innovation team had been unable to find a supplier of a specific type of frying oil essential to the product.
SOLUTION
The procurement team turned to Scoutbee Discovery, a recently acquired tool, to simplify and accelerate the search process. By consolidating their requirements into Scoutbee’s specialized search form, which translates complex product specifications into targeted search terms, the team could streamline their search without sifting through endless supplier directories or Excel sheets. Scoutbee’s AI-powered algorithm scanned online sources for suppliers that precisely matched their highly specific criteria, presenting an impartial list of potential partners.
RESULTS
Within days, Scoutbee Discovery delivered a list of 24 previously unknown suppliers , complete with enriched profiles detailing their revenue, employee count, certifications, and more. This instant access to comprehensive data eliminated the need for multiple meetings, allowing the team to focus on strategic planning and significantly reduce the risk of misalignments with suppliers. The team invited 17 suppliers to participate in the RFI , achieving four times the efficiency and quality compared to traditional manual searches.
24 unknown suppliers
17 suppliers invited to the RFI 4X more efficiency and quality
CONCLUSION
By accelerating the supplier discovery process with Scoutbee Discovery, the procurement innovation team salvaged a high-stakes product launch , paving the way for further R&D testing and bringing the company closer to meeting its ambitious sales goals. The swift and successful outcome highlighted Scoutbee Discovery’s vital role in supporting the company’s pursuit of innovation and market leadership.
Scoutbee Discovery enhances SAP Ariba Guided Sourcing by expanding supplier visibility, which enables cost reductions, drives proactive risk management, and supports sustainability goals. This powerful combination provides organizations with a competitive edge, ensuring they stay ahead in an ever-evolving market. By leveraging AI-driven insights, businesses gain a strategic advantage, optimizing procurement processes efficiently and effectively.
Discover a whole new world of suppliers with Scoutbee Discoverycontact us to find out more.
Book a free 30-minute health check or demo now.
