The purpose of this article is to showcase the utility of leveraging hybrid sourcing strategies for complicated industrial sourcing applications. The hybrid sourcing strategy used to identify, vet and select a source of high purity, naturally derived, structurally complex silicate is presented via a case study. This strategy used both advanced digital tools and traditional manual sourcing methods to efficiently and effectively source silicate for trimethylsilyl-treated silicate production.
Modifying the 7-step strategic sourcing process, a cross-functional team developed an inclusive list of known success criteria. They then identified and down selected sourcing options using digital optimization tools. Higher complexity success criteria were added stepwise, further reducing sourcing options and minimizing resource requirements for manual de-risking. Manual de-risking was strategically implemented to differentiate among top suppliers, and included independent analytical assessment, small scale laboratory trials, application testing and onsite supplier audits.
This case study demonstrated measurable raw material attributes are not always predictors of success in application. Laboratory trials were required to adequately de-risk and differentiate between top suppliers.
Sourcing and de-risking strategies used herein are broadly applicable across spend categories with ambiguous success metrics. However, high resource is required to execute staged manual evaluation and de-risking, and may limit application.
This case study acknowledges that although digital optimization tools have vast utility, strategic use of manual sourcing strategies is still necessary, especially in applications where multi-objective optimization criteria have varying degrees of ambiguity.
