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Sourcing Optimization

Optimize sourcing decisions by incorporating cost, simulation, and risk

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What is sourcing optimization

What Is Sourcing Optimization?

Sourcing optimization helps you define supplier allocation and selection strategies. Sourcing optimization software employs advanced algorithms and mathematical models to analyze various sourcing scenarios so you can make data-driven recommendations.

Use Cosmic Frog as part of strategic sourcing to determine which suppliers should be selected for specific products considering complex factors and business rules like inventory, transportation costs, asset capacity, production constraints, and risk factors.

Cut Costs and Maximize Profit

Achieve cost reduction and profit maximization by optimizing your supply chain network from top to bottom with detailed rules and costs. Sourcing optimization software creates a holistic view of your supply chain to find the best supplier network configuration, then leverage advanced algorithms and scenario analysis to make winning strategic sourcing decisions.

Cut Costs and Maximize Profit
Risk Rating

Predict Risks and Fortify Your Supply Chain Against Disruptions

Predict and mitigate potential supply chain disruptions with sophisticated risk assessment algorithms. Understanding potential vulnerabilities before selecting suppliers enables informed decisions that safeguard against disruptions and bolster your supply chain’s overall stability and resilience.

Make Your Suppliers a Competitive Advantage

Stay ahead of the competition by making data-driven procurement decisions that optimize costs and minimize risk. By leveraging advanced algorithms and scenario analysis, you can rapidly adapt to changing market conditions and stay ahead of the curve. Sourcing optimization software also fosters strategic supplier relationships and improves overall supply chain performance so that you can outperform your competitors in every way.

Sourcing Optimization Model

Cosmic Frog Analyzes 1000s of Future-State Supply Chain Scenarios in Minutes

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Cosmic Frog Sourcing Optimization Software Features

Cost Modeling

Go beyond assessing direct supplier expenses: delve into a comprehensive analysis encompassing all facets of the supply chain, including sourcing costs, transportation fees, inventory expenses, and more. Optimize supplier selection, enrich the negotiation process to warrant mutual advantage, account for direct and indirect procurement costs, and weigh the impact on price.

Risk Assessment

Our sourcing optimization software provides a thorough evaluation of risk factors, revealing the potential impact of critical elements like supplier concentration, supplier allocation, geographic vulnerabilities, and shifting market conditions. Understanding how to predict and reduce risk empowers you to make strategic decisions that bolster your supply chain resilience.

Multi-Criteria Decision Analysis

Use sequential optimization to solve for multiple factors simultaneously. This advanced sourcing optimizer enables tactical sourcing decisions according to lowest cost and other factors that align with your business strategy.

Unlimited Scenario Analysis

Cosmic Frog’s hyper-scalable architecture enables users to evaluate multiple strategic sourcing options simultaneously in the cloud. Accelerating your sourcing process by analyzing multiple scenarios in parallel improves your ability to adapt to rapidly changing market conditions and seize new opportunities as they arise.

Sensitivity Analysis

With Sensitivity at Scale, users can create and run hundreds to thousands of scenarios in parallel that test the solution’s sensitivity to changes in transportation cost, demand, and capacity availability, and more—at the click of a button.


After sensing your supply network designs, validate the detailed behavior. Simulation shows you the impact of different supplier selections and the variability associated with performance metrics, costs, and other key parameters in the procurement process. Understanding the impact of each strategic sourcing decision before it’s made reduces the risk of costly mistakes and enhances overall operational efficiency.

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