Dynamic Market Sourcing: The Key to Navigating Market Volatility

Supply chain unpredictability isn’t a temporary challenge – it’s the new reality. From the lasting effects of COVID-19, to geopolitical upheavals, to the recent constant shifting of global trade policies, disruption is no longer the exception but the rule. In this environment, traditional sourcing strategies fall short. Success now depends on agility: being able to pivot quickly, mitigate risks, and secure supply in an ever-shifting landscape.

Traditional sourcing is too slow and rigid for today's volatile markets where sudden shifts in supply, pricing, policy and capacity expose the limits of old-school tactics. Manual processes and long cycle times make it hard to react swiftly, leading to inefficiencies and lack of flexibility to keep pace. As Alan Holland, CEO of Keelvar, puts it: "Even in less volatile times, the most adaptable companies survive."

Introducing Dynamic Market Sourcing

Dynamic Market Sourcing or ‘dynamic sourcing’ has emerged as the sourcing strategy that keeps businesses agile and ready to pivot on a dime. Global enterprises like Microsoft, Coca-Cola and Carlsberg shifted to this strategy in response to COVID-19. Since then, they’ve been able to engage markets continuously, allowing them to adjust pricing, renegotiate contracts, and optimize spend and supplier relationships in real time. 

What is Dynamic Market Sourcing?

Dynamic sourcing leverages technology and automation to allow organizations to go to market frequently which in turn, enables them to respond rapidly to changing conditions. Unlike the lengthy and inflexible RFP cycles of traditional sourcing, Dynamic Market Sourcing means annual and off-cycle events are all part of a single-threaded collaborative sourcing process. Compared to traditional sourcing where off-cycle events are typically manual, dynamic sourcing relies on technology to make all sourcing events low effort, highly repeatable and much quicker and easier to launch, via automation. Rates are refreshed regularly to stay current with market changes, allowing for competitive market rates and effective risk management.

‍Why Dynamic Market Sourcing is Essential in Today’s Market

Dynamic sourcing isn’t new, but those who’ve adopted it gain agility, responsiveness, and strategic insight. By frequently going to market, businesses proactively manage price fluctuations and capacity shifts rather than just reacting to them. Shorter, dynamic bid cycles create a ‘virtuous circle,’ keeping contracts and strategies aligned with real-time market conditions.

Organizations who have adopted a dynamic sourcing strategy typically launch sourcing events at least 50% faster and can complete competitive sourcing requests in under 15 minutes.

“As one of the early adopters of this solution with Keelvar, I can honestly say it’s been groundbreaking for us in the Coca-Cola system. We now have a structured digital solution to manage all our “Off Tender” requests, removing 100s of emails from our inboxes on a weekly basis.” – Alan Smith, Procurement Director - Global Logistics, CEPG

“Transportation markets are cyclical, they go up and down across the globe. They're constantly changing. Going quick to market allows us to capture advantages that whether that curve is trending up or trending down” – Basil Weaver, Director of Supply Chain Solutions & Analytics, CJ Logistics America

The Bottom Line?

Agility is no longer optional – it’s the baseline for modern sourcing. Embracing automation technology is a key component in unlocking this dynamic way of working. Today’s challenges demand more than quick reactions to stay ahead of disruptions; they require intelligent, tech-enabled sourcing strategies that support continuous adaptation. 

Automated sourcing workflows accelerate dynamic sourcing by drastically reducing the time needed to create and launch RFx events. This enables more frequent sourcing and frees procurement teams to proactively track market shifts and adjust their sourcing approach accordingly. When market benchmarks shift, sourcing event workflows automatically trigger, ensuring optimal rates. This proactive strategy saves both time and cost, while boosting resilience.

Using automated sourcing in conjunction with advanced sourcing optimization has the potential to de-risk sourcing decisions even further by encouraging suppliers to submit expressive bids. This allows procurement teams to award business based on broader criteria beyond price alone, strengthening critical supplier relationships even amid challenging market conditions.

In short, automation and optimization unlock several key benefits required to adopt a Dynamic Market Sourcing strategy: 

1. Agility to Respond Fast

Markets shift weekly, not yearly. Teams must be able to adjust sourcing strategies instantly. Leading procurement teams leverage scenario-based tools to respond proactively with fewer resources, gaining a full view from strategy to execution.

2. Resilience to Withstand Disruptions

From cost swings to supply shocks, resilience means staying operational through it all. Top performers digitize their sourcing to maintain continuity, diversify supplier bases, and reduce dependency on any single source.

3. Flexibility for Real-World Sourcing Needs

Whether it’s quarterly mini-bids or urgent spot buys, flexible teams can source across carriers and onboard new suppliers quickly. Tech-savvy leaders run efficient, repeatable events with automation – while laggards are still using email and spreadsheets.

4. Risk Visibility and Proactive Management

In a world of constant disruptions, sourcing leaders rely on data and scenario planning to identify and mitigate risk before it hits. They balance cost with reliability, sustainability, and delivery performance – often awarding multiple suppliers to avoid single points of failure.

Keelvar’s Take

Supply chain volatility is here to stay. To stay ahead, organizations require agility and a strategic shift away from traditional sourcing methods toward Dynamic Market Sourcing. With automation and optimization technologies, procurement teams gain critical agility to quickly adapt, proactively manage risks, and maintain strong supplier relationships – even in turbulent markets

So don’t ditch the annual RFP – rethink it. Use it to reset strategies, refresh supplier terms, and stay aligned with market shifts. Pair it with more frequent updates to keep sourcing dynamic, collaborative, and risk-aware all year long. 

To learn more about Dynamic Market Sourcing and how Keelvar can help, register for our upcoming webinar here