Why do businesses need strategic sourcing?



Strategic sourcing is essential for businesses because it goes beyond just finding the lowest price — it focuses on reducing the total cost of ownership. This requires a deep understanding of both cost analysis and price analysis to make informed purchasing decisions.

· Cost Analysis: AI-driven tools break down cost structures, highlighting opportunities for cost reduction and improved cost efficiency.

· Price Analysis: AI compares current prices with market benchmarks and historical trends, helping businesses secure price optimization and negotiate better deals.

By leveraging these insights, businesses can enhance their supplier management, drive cost containment, and build a more resilient supply chain.
Read more: https://aimdrive.com

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