What Is Sourcing Optimization?
Sourcing optimization helps you define supplier allocation and selection strategies. Sourcing optimization software employs advanced algorithms and mathematical models to analyze various sourcing scenarios so you can make data-driven recommendations.
Use Cosmic Frog as part of strategic sourcing to determine which suppliers should be selected for specific products considering complex factors and business rules like inventory, transportation costs, asset capacity, production constraints, and risk factors.
Predict Risks and Fortify Your Supply Chain Against Disruptions
Predict and mitigate potential supply chain disruptions with sophisticated risk assessment algorithms. Understanding potential vulnerabilities before selecting suppliers enables informed decisions that safeguard against disruptions and bolster your supply chain’s overall stability and resilience.
Cosmic Frog Sourcing Optimization Software Features
Go beyond assessing direct supplier expenses: delve into a comprehensive analysis encompassing all facets of the supply chain, including sourcing costs, transportation fees, inventory expenses, and more. Optimize supplier selection, enrich the negotiation process to warrant mutual advantage, account for direct and indirect procurement costs, and weigh the impact on price.
Our sourcing optimization software provides a thorough evaluation of risk factors, revealing the potential impact of critical elements like supplier concentration, supplier allocation, geographic vulnerabilities, and shifting market conditions. Understanding how to predict and reduce risk empowers you to make strategic decisions that bolster your supply chain resilience.
Multi-Criteria Decision Analysis
Use sequential optimization to solve for multiple factors simultaneously. This advanced sourcing optimizer enables tactical sourcing decisions according to lowest cost and other factors that align with your business strategy.
Unlimited Scenario Analysis
Cosmic Frog’s hyper-scalable architecture enables users to evaluate multiple strategic sourcing options simultaneously in the cloud. Accelerating your sourcing process by analyzing multiple scenarios in parallel improves your ability to adapt to rapidly changing market conditions and seize new opportunities as they arise.
With Sensitivity at Scale, users can create and run hundreds to thousands of scenarios in parallel that test the solution’s sensitivity to changes in transportation cost, demand, and capacity availability, and more—at the click of a button.
After sensing your supply network designs, validate the detailed behavior. Simulation shows you the impact of different supplier selections and the variability associated with performance metrics, costs, and other key parameters in the procurement process. Understanding the impact of each strategic sourcing decision before it’s made reduces the risk of costly mistakes and enhances overall operational efficiency.