Uncertain economic conditions increase the pressure on business leaders to find clear cost-cutting measures. For many companies, automated procurement tools fit the bill- slashing the fat from indirect purchases and reigning in maverick buying. But even greater opportunities for value creation exist earlier in an organization’s procurement activities: during the supplier sourcing process.

During this process, organizations typically decide what and when to buy, who to buy it from, how often to buy it and how to measure a supplier’s performance in terms of quality, timeliness and responsiveness. The answers to these questions lay the groundwork for the corporation’s overall cost structure, often strategically locking companies into procurement expenses for years to come.

But executives can now optimize their strategic sourcing opportunities and cut related cost from the beginning of the procurement process. A new generations of strategic sourcing solutions help companies to address the entire spectrum of purchasing activities, with a breadth and depth that includes crucial sourcing decisions. “The opportunity presented by strategic sourcing technology to drive very immediate and sustainable return on investment is unmatched,” says Richard Waugh, executive vise president and counfounder of B2e Markets. “And that’s very appealing in today’s economic conditions”.

B2e Markets, founded in 1999 by General Electric sourcing practitioners Waugh and Orville Bailey, offers strategic sourcing technology designed to flexibly and modularly help companies more efficiently manage their sourcing activities- the gain the associated savings that naturally follow. Solutions are available as in-house licensed applications or as a hosted suite.

One satisfied B23 Markets customer is Praxair, a 94-year-old manufacturer of industrial gasses head quartered in Danbury, Connecticut.

The world’s third largest industrial gas company, Praxair spends $3.5 billion annually on supplies and services, including nearly $1.5 billion on indirect and capital goods. In the late, 1990’s the company successfully implemented a comprehensive automated procurement program- including reengineered processes, electronic requests for quotes and even a data mart of spending information- to reduce costs and increase purchasing efficiencies.