In today’s transactional world, it is easy to focus solely on availability and timely delivery of needed parts as a measurement of distribution platform effectiveness. While it makes sense that timely delivery is the ultimate performance metric, it is not the only one that you should be tracking. In other words, the story does not stop there.
Understanding Extended Impact
When you look at the features or functionality of a Distributor Quoting Platform, you need to look beyond functionality to determine what it contributes in the way of bottom-line savings.
For example, being able to streamline the procurement process through a match of line item requirements and identified supplier capabilities, significantly reduces the time it takes to source parts. This capability as well as others within the platform will, in turn, free up valuable resources to focus on managing sourcing and delivery exceptions or take on more clients within your existing resource infrastructure. For each organization, the calculation of the benefit will be different, but meaningful.
“Getting more work done, with higher quality results, without the application of additional resources.” – CASE STUDY: Manufacturer’s Supply Company (Mansco)
Another area of impact to consider is the ability to apply cost drivers to supplier pricing for logistics, customs or other added elements to ensure that you are analyzing supplier responses on a level playing field basis.
These are just two examples of what you should consider when assessing the overall effectiveness of your Distributor Quoting Platform, especially from a sourcing standpoint. In short, it is important to unpack the hidden value beyond delivery outcomes.
Unpacking Hidden Value
Unpacking the hidden value does not mean that you lose sight of the primary objective which is having the right parts in the right place at the right time to meet your client demands. What it does mean is that you should also look at the individual functional elements from the standpoint of increased efficiency and lowered costs.
In a future post, I will delve deeper into the unique functional elements of a dynamic Distributor Quoting Platform and how the emerging digital marketplace is causing customers to look at its expanded impact from both an operational as well as bottom-line perspective.
I will also be talking about the way that the extension of the Distributor Quoting Platform to include Source-2-Quote has led to the creation of a true end-to-end capability that will drive more significant savings throughout your entire supply chain practice.
“The visibility QLM Sourcing™ provides of the quotation cycle from customer to supplier and back again gives new meaning and value to the entire business process. Both the efficiency of the process and the tracking and analysis the QLM system provides have been great additions to our overall performance.” – Mark Hendrickson, VP Sales, and Marketing