PLM and Strategic Sourcing - Expanding PLM into "Design-to-Source" (cont.)
Raj Khoshoo, Vice President, UGS, Strategic Initiatives and Joseph Raudabaugh, President AT Kearney Procurement Solutions, have teamed together to write a white paper on the importance of this collaborative process improvement between product development and procurement. Although this article addresses the business challenge for the consumer/packaged goods industry, its concepts are applicable to all other industries as well.
In the case of consumer products companies, the pinch of ever-tightening margins is feeling more like a vise grip. As retailers fight to undercut each other on price, they are demanding the same products at lower and lower prices. The only way to loosen this hold is for consumer products companies to improve their operations. How? As Raj and Joe explain, the answer involves going back to the drawing board to root out unnecessary complexity in the design and manufacturing process. Doing so can save 20 percent or more in design costs and slash engineering and launch cycle times by as much as half.
That means following the lead of other industries, particularly high tech and automotive - where companies have made solid inroads into reducing complexity by integrating new technologies into their operations. They've streamlined the number of product components in the process and adapted existing designs to cash in on the benefits of volume purchasing.
UGS works hard to bring industry-leading solutions to the market that yield immediate, measurable benefits and help you grow your business. Our goal, always, is to help you become more innovative, more competitive, more efficient, and more flexible to respond to new opportunities in rapidly changing business environments.
To learn more about our Sourcing strategy and products, visit http://www.ugs.com/products/teamcenter/sol_prod/sourcing/
To download a copy of the Streamline Your Style white paper, coauthored by UGS and AT Kearney, visit https://www.ugs.com/forms/tc_atk_wp.shtml
