Benefits


A central pillar of Keelvar’s philosophy is intuitive design, positive user experience and strong support. Users must want to use Keelvar in order to deliver the benefits of speed, savings, control and insights. Keelvar sees far higher rates of adoption than other optimization tools because we make it easy to realize the following key benefits.

Speed

It’s never been so easy to apply optimization quickly and easily in sourcing events. Simply break requirements into granular Lots and collect prices on each, e.g. price per location. Evaluation is complete at the click of a button! Any number of scenarios with flexible rules can be evaluated in seconds.

Risk Management & Control

Choose award criteria that align corporate strategy or risk management policies with the outcome of the bid process. For example, manage the number of suppliers, include switching costs, avoid monopolies or support SMBs by simply setting these business rules in a few clicks.

“Having used other optimization tools for many years, it is immediately obvious that Keelvar is a giant leap forward. I’d highly recommend it to any logistics procurement team.”– Chas Deller, 10X Ocean Solutions, San Francisco, USA.

Power and control.

Accountability

Finance may be more interested in cost savings whereas other business stakeholders such as Logistics or Material buyers are more concerned with biasing outcomes in favor of certain suppliers or quality factors.C-level management may be less concerned with specific details but care more about having high level controls and insights. The ability to visually assess the impact of certain decisions can help stakeholders understand the trade-offs better, and ultimately choose the best outcome that meets corporate objectives.

Managing Margins

Sourcing optimization is sometimes misrepresented as a tool focused on driving down costs and supplier margins. The truth is that suppliers can increase margins whilst reducing costs for buyers by making contingent offers on combinations of lots that offer cost synergies. In other words, suppliers can communicate richer cost structures and the optimization engine finds a way to split the award across two or more suppliers so that they are playing to their respective strengths.

Savings and Insights


Savings flow because the landscape of cost profiles from suppliers is better understood. Expressive bid information describes economies of scale and scope so that the buying organization can share in the benefits of efficient allocations. These gains are shared so suppliers have an incentive to engage in the process of describing package bids with contingent discounts.

Savings

Savings flow because the landscape of cost profiles from suppliers is better understood. Expressive bid information describes economies of scale and scope so that the buying organization can share in the benefits of efficient allocations. These gains are shared so suppliers have an incentive to engage in the process of describing package bids with contingent discounts.

Insights

For experienced users of sourcing optimization, the deeper insights and understanding of supplier cost profiles and inherent trade-offs give much stronger evidence in the selection of appropriate sourcing strategies and market treatments. It provides a spotlight on the types of goods and services that are vulnerable to monopolization and thus informs negotiators on how to protect the buying organization from future risks.

Frequently Asked Questions

How do suppliers react?
Suppliers want to say more

Most eSourcing tools need to limit the expressiveness of suppliers and buyers so that computing outcomes is relatively simple. Suppliers often want to communicate savings opportunities but need package bids, capacity constraints, alternate offers and tiered discount capabilities to inform buyers of how this can be achieved. Winner determination is only possible when your eSourcing tool is optimization-backed.

Companies can end up paying 4-15% more for goods and services on average and usually miss special deals that allow for efficient or innovative solutions. Enterprise grade eSourcing should always adopt optimization to leverage buying power, facilitate risk management and achieve a competitive advantage through win-win outcomes with suppliers.

Where is time saved?
Data Cleansing and One-Click Evaluation

Supplier bid data is validated and checked for reasonableness (e.g. no text value for a numeric attribute) before submission so that data received is clean and reliable.

Evaluation and report generation is automated and will describe outcomes consistent with any specified business rules or biases in favor or against bidders. This power is just a single button-click away. The evaluation stage after bids close is where the time savings are clearly evident.

The platform supports bulk upload and automatic mapping, which means existing data residing in spreadsheets can be leveraged – saving time during event creation. The freed up time can be used to focus on strategy and enhancing supplier relations.

Are you ready to try Keelvar?

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