Rising transportation costs, increasingly complex event sourcing and the pressing need to transform from manual to digital processes are three of the significant issues successfully tackled by JAGGAER customers utilizing digitalization strategies based on effective application of sourcing and analytics tools, providing examples for logistics supply chain management in 2019. These issues reflect a growing move towards remediation through digitalization.
According to the *2018 report on annual trends and issues in logistics and transportation, decreasing rising transportation costs is cited as one of the primary digitalization drivers. The report surveyed 240 respondents from 15 industry sectors, representing 31% of domestic transportation expenditures. Additionally 22% of companies are calling out digital initiatives as a core part of their business strategy. 24% reported that increasing supply chain agility was a critical goal, with 41% planning on accelerating their level of investment in digital business initiatives in the next 12 months.
Several JAGGAER logistics industry customers successfully managed supply chain issues through their own digital transformation processes. An independent purchasing cooperative for a national North America restaurant chain, with nearly $4 billion in buying power supplying over 6100 locations, needed a way to manage sourcing events with unlimited items and bid elements. They selected JAGGAER’s Advanced Sourcing Optimization (ASO) solution to accelerate bid flow, opening up more opportunities and creating additional value drivers in multiple categories.
A €7 billion, non-asset logistics supply management company needed more flexibility and control over increasingly complex sourcing processes. They also reached their objectives through adoption of JAGGAER’s ASO. A major life sciences company relied on completely manual processes to compare suppliers and make sourcing decisions; a time consuming process that didn’t leave room to evaluate options. They adopted a JAGGAER strategic sourcing solution, cutting their time to execute RFP’s by 60% and realizing 23% in cost savings.