London, November 13, 2013 - The Trade Extensions sourcing and optimisation platform has completed its largest ever project and broken the €7 billion barrier for the first time. The project, sourcing all the elements associated with constructing a large European gas pipeline, highlights how e-sourcing and optimisation are becoming the norm for large scale projects.
The €7 billion pipeline project utilised some of the world’s most advanced optimisation techniques through the Trade Extensions platform and is in addition to the USD$1 billion of spend that is allocated through the platform each week by some of the world’s leading companies.
Trade Extensions, CEO, Garry Mansell said, “Despite the high value passing through the platform, it is still small relative to amount of spend allocated generally. The European GDP is $16 trillion so Trade Extensions allocating $1 billion globally each week shows how much of an opportunity there is in this sector and explains in part why we are experiencing such rapid growth – the first half of 2013 was 70% up compared to 2012.”
Optimisation is a branch of mathematics that identifies the best combination of elements from particular data sets that meet any specified criteria. It is used in sourcing to analyse the millions of combinations of goods and suppliers that are generated during sourcing projects and fundamentally improve businesses by identifying the best solution in terms of quality, price or any other operational factor. It has been described as the “perfect technology for complex sourcing”* and “instant ROI. Guaranteed”** and the techniques are becoming more widely used as this level of analysis is impossible without sophisticated software and e-sourcing delivers additional benefits in terms of communication, data-handling, transparency and workflow management.
Mansell said, “We expect our growth to continue as the sector develops and more companies recognise the instant ROI available from using e-sourcing and optimisation techniques.”
*Analytics Magazine – July/ August 2013 - ‘Forecasting and Optimization – Perfect Technology for Complex Sourcing.
**Sourcing Innovation - Is 2010 The Coming of Age for Sourcing and Supply Chain Optimization?
About Trade Extensions
Trade Extensions is the leading software provider for the most complex and large scale sourcing and optimisation projects. Its platform is uniquely flexible and runs projects ranging from simple reverse auctions to complex sourcing events involving goods and services worth billions of dollars, millions of data items and multiple rounds of negotiation.
The flexibility and power of the platform means, along with sourcing, it can be configured to model and optimise practically any resource allocation problem and has been used for applications as diverse as production planning and supply chain design.
The company has eight offices across the US and Europe and is used by a number of the top Fortune 500 companies.
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