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Sourcing Optimization Software

The Right Price Isn’t Always The Lowest Price.

Companies use Sophus to get a sourcing plan around the true cost to your supply chain, not just the unit price on the quote, weighing when to source, how much, and whether to make it in-house or outsource it.

Trusted by Growing Companies at Every Stage of Network Design Maturity

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The cost hiding behind the quote

In industries like automotive, retail, and CPG, sourcing is one of the biggest costs a company carries, yet most sourcing decisions still come down to a single line: unit price.

What if every choice, like what to order, how much, and from which supplier, was judged by what it actually costs downstream: the inventory it ties up, the logistics it triggers, the total burden on the supply chain? Not just the price on the page.

That’s what Sophus Sourcing Optimization does. It builds the sourcing plan around the whole picture, bracket pricing, sourcing rules, downstream inventory, and logistics cost, together, so the cheapest-looking option and the cheapest option are finally the same thing.

The Problem

Sourcing cost is a major expense for automotive, retail, and CPG.

Most companies can cut that cost significantly just by looking at the whole supply chain instead of the number on the purchase order.

The Sophus Solution

A sourcing plan built on total cost

The Sourcing Plan

Generation of an optimal sourcing plan that accounts for the overall impact on supply chain cost, including when to source, how much to source, bracket pricing, sourcing rules, and the impact on downstream inventory.

Run the what-ifs

Trade-off analysis between in-house capacity and outsourcing, weighing cost, capacity, capabilities, lead time, and seasonality together.

See the real impact

The optimal plan is differentiated by product type, since one sourcing rule rarely fits every product line well.

Proof

What sourcing leaders say about the impact

Sophus customers typically see these results by optimizing the sourcing plan against total supply chain cost instead of unit price alone.

6%

Sourcing cost reduction, up to

8–10%

Inventory reduction

15–20%

Logistics cost reduction

How It Actually Works

Data In. Decision Out.

Dastro

Data Automation

Pulls and cleans supplier pricing, lead time, and cost data automatically, so the plan never runs on a stale quote.

Sophus X

Optimization Engine

Turns that data into the sourcing plan — when to buy, how much, and from where, optimized for total cost.

One data layer, one decision engine, one sourcing plan.

Stop Sourcing On Unit Price Alone.

Verified By Gartner Peer Insights

What Verified Users Say on Gartner

4.8 ratings on Gartner Peer Insight

Build Around Your Sourcing Plan

Put the plan to work

Sourcing connects directly to how you plan, budget, and move inventory around it.

Cost to Serve

See the true delivery cost once sourcing decisions are already optimized.

Inventory Optimization

Set stock targets that reflect the sourcing plan, not a separate assumption.

Supply Chain Network Design

Design the network your sourcing strategy actually depends on.

Tax & Duties Optimization

Factor tariff and duty exposure into the same sourcing decision.

Replenishment Optimization

Turn the sourcing plan into the right replenishment frequency at every site.

Common Questions

FAQs

What is sourcing optimization?

Sourcing optimization builds a sourcing plan around the total impact on supply chain cost, not just unit price. It recommends when to source, how much to source, and how to account for bracket pricing and sourcing rules, so the decision holds up once inventory and logistics cost are factored in.

What is bracket pricing, and why does it matter in sourcing?

Bracket pricing is when a supplier’s unit price drops at certain order quantity thresholds. Ordering just under a bracket can look cheaper per unit but leave savings on the table, while ordering too far into a bracket can tie up cash in excess inventory. Sophus factors bracket pricing into the sourcing plan so the order quantity lands in the right tier for total cost, not just unit price.

How do you decide between in-house production and outsourcing?

Sophus runs a trade-off analysis between in-house capacity and outsourcing, weighing cost, capacity, capabilities, lead time, and seasonality together, instead of defaulting to whichever option looks cheapest on a single factor.

Does sourcing optimization differ by product type?

Yes. The optimal sourcing plan is differentiated by product type, since cost structure, lead time, and seasonality vary enough between product lines that a single sourcing rule rarely fits all of them well.

How much can sourcing optimization save?

Sophus customers typically see sourcing cost reduced by up to 6 percent, inventory reduced by 8 to 10 percent, and logistics cost reduced by 15 to 20 percent, by optimizing the sourcing plan against total supply chain cost instead of unit price alone.
Get Started

Ready To Source On Total Cost, Not Sticker Price?

Stop finding out the real cost of a sourcing decision after it’s already tied up your cash. Get a sourcing plan built on total cost to your supply chain, not just the number on the quote.