Localized procurement, diverse needs, and lack of collaboration led to fragmented sourcing
Business 4.0TM world offers opportunities for the organizations to harness abundant resources. Harnessing ecosystems is one of the key aspects of this abundance. Tata Sons being a promoter of Tata Group, a large business conglomerate, needed to tap opportunities across group companies to drive sustainable energy, reduce wastage, and promote responsible and profitable supplier relationships. Localized procurement, lack of visibility into demand, and collaboration challenges prevented Tata Group from harnessing group synergy. Sustainable sourcing was seen as a business imperative requiring scale and synergy.
TCS sourcing platform helps Tata Sons fast-track sustainable and inclusive sourcing
Tata Sons wanted to standardize and harmonize sourcing process across the group companies, simplifying it for the buyers and bringing greater transparency to harness demand. They selected TCS sourcing platform and services, in order to leverage category expertize, proven sourcing process and best practices, unique collaboration model, and technology leverage. TCS platform-based sourcing helped Tata Sons aggregate and rationalize diverse needs across the group companies and rapidly strategize group-level sourcing while overcoming challenges of scale, complexity, supply risk, quality, and cost. The solution encompasses an active engagement model, aggregating complex demand, early supplier feedback, and establishing critical success factors, cross-functional collaboration, inclusive sourcing, and RFX management. The solution enables rapid formulation and execution of sourcing strategy, while bringing long-term cost certainty for the group companies. Tata Sons has transformed the group sourcing and started to reap benefits in terms of savings through competitive pricing, most favorable contract terms, and active use of contracts.