It is essential for any top-performing corporation to know its market and understand which suppliers can deliver on its demand. Having the capability to discover new suppliers at speed and compare them with existing suppliers enables procurement to make cost-effective decisions without giving up on quality. This challenge requires both extensive knowledge and experience of what drives profitability as well as the capability to compare supplier options and their performance.
Procurement teams must find ways to optimize category costs, drive innovation, and raise resilience, while at the same time secure that their supply chains are as sustainable as possible. The consultancy ET Advisory excels in giving trusted advice in the field of Product Cost Management. With their over 20 years of combined experience, they have tested knowledge of how to organize both the organizational and operational drivers of manufacturing to reduce costs and increase profitability. In their words, they help businesses reach Cost Orchestration.
Part of ET Advisory method is using the latest innovations within cost management. For that reason, they teamed up with Scoutbee. Scoutbee improves supply chain resilience by using Artificial Intelligence and Big Data to transform the way organizations use supplier data to discover and connect with suppliers. Together they contribute a holistic approach to more environmentally sustainable and profitable procurement for corporations.
At the outset of the partnership
June of 2022 marks the 1st anniversary of their collaboration. The start of the partnership came from ET Advisory’s need for an innovative partner supplier scouting. With a strong foothold and insights into the Scandinavian manufacturing industry, ET Advisory was working with a major Nordic automotive manufacturer. It soon became clear that scoutbee’s supplier scouting capabilities would be needed.
– When we got in touch with ET Advisory, we quickly found many benefits in collaborating. Our technology completes ET Advisory’s knowledge and customer relationships expertly, while ET Advisory, with their deep industry experience of purchasing and changing processes, is a great compliment to us, says David Almström, CCO of Scoutbee explains. We’ve found the ideal combination of our strengths to deliver the maximum value for our customers and achieve cost orchestration.
Scoutbees solution significantly simplifies the process of finding new suppliers or understanding which of the existing suppliers they can utilize, David Almström, CCO of Scoutbee explains.
– Our customers use our software in several ways: build new products, find alternative suppliers, find local suppliers, or support suppliers who are more diversified or environmentally friendly, he says.
They call the practice Intelligent Supply Chain. Scoutbees solutions have been proven tenfold. Most recently in March of 2022, when they were granted the Unilever “Partner with Purpose ” award, as recognition of how Scoutbee is adding value to their commitment to sustainably growing the Unilever business. With their cloud-based and easy-to-use solution, Scoutbee can minimize the cost of hardware and surrounding software for their customers, while also finding more sustainable supplier options.
ET Advisory founders Tony Bergström and Mats Bergkvist and their team have showcased their expertise in projects with customers such as Electrolux, Northvolt, Volvo, and VOI.
Together with their expertise in the handling of complex cost drivers and profitability, the partnership with Scoutbee offers an ideal combination for unlocking maximum value from their respective solutions.
Partnering in the Nordics
ET Advisory and scoutbee look forward to expanding their partnership. The challenges procurement is facing in the manufacturing industries are plenty and they keep increasing.
-Companies need to display a high level of agility when responding to supply chain bottlenecks”, says Tony Bergström, founder of ET Advisory. “And using Scoutbee to resolve bottlenecks is key within cost orchestration as a quick and agile approach. Using Scoutbee’s tool repeatedly helps customers to have control over the supply chain and be able to fender supply chain bottlenecks that may arise. By learning the market within different categories, procurement teams can avoid bottlenecks that harm your margin.”
David Almström explains the partnership as a close collaboration where both teams work together to find the best possible solutions for their customer’s problems.
– Above all, the more important aspect has been building strategies that allow us to save costs at the supplier level – through exposure to competition, finding alternative suppliers who can deliver at lower costs, and finding new solutions that reduce the total cost.
-Having the ability to identify suppliers at high speed and having business units outside of procurement involved in the process is key to ET Advisory’s cost orchestration. As a framework, cost orchestration aims to reduce siloed structures within companies. With departments having their own KPIs, companies often lose efficiency – while driving costs at the same time. A tool like Supplier Discovery not only facilitates the lengthy process of scouting and onboarding suppliers: it also helps to bring departments and business units closer together, allowing them to monitor the progress of scouting and directly interact with suitable suppliers, says Tony Bergström
Apart from the achievements with the Nordic manufacturer, another highlight of the ET Advisory scoutbee relationship was a webinar hosted in May of 2021. As the title indicates, it is still worth a watch: “AI & Supplier Insights: Building Resilience & Opportunity”.
The whole team at scoutbee is extremely happy about the partnership with ET advisory and the great work done together. “We have seen great success coming from partnering with specialized consultancies. And Et advisory is an excellent example of the benefits for Scoubee and our joint customers”, says David Almström, Chief Commercial Offer at scoutbee.
In the long term, Scoutbee sees ET Advisory as a strong and reliable channel to the Scandinavian market, David Almström continues.
– We can now reach new customers that we otherwise would find challenging to engage with. Through our partnership, we receive valuable information on how market requirements will change in the future, he finishes.