Supplier Relationship Management
Leverage Connections between Product Development, Procurement and Suppliers to Manage Product Cost
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In today’s environment of increasing global competition, your company is being driven to synchronize its global operations in order to position itself for profitable growth. However, you’re challenged by poor information visibility, inefficient sourcing processes, maverick buying and minimal coordination between engineering and procurement teams.
If you overcome these challenges, the benefits of synchronization are clear. Incorporating spend analysis earlier in the product development process can help your company achieve significant product cost savings. Involving procurement and suppliers at design inception and development can result in cost reductions of nearly 18 percent compared to companies delaying such collaboration. According to research, innovators who integrate the product development and sourcing processes achieve a greater than 30 percent reduction in finished goods inventory and a 25 percent improvement in on-time delivery. When your company synchronizes product development and sourcing processes, you can realize up to 73 percent higher profit margins than your competitors who don’t.
How can you tell if you need product design and sourcing process synchronization? If your sourcing teams are spending time on tactical activities such as request for quotation (RFQ) preparation and processing, with little value added to strategic sourcing, you have a tremendous opportunity to synchronize operations and improve business performance.
Teamcenter Integrates Product Development, Procurement and Suppliers
Teamcenter’s supplier relationship management (SRM) solution can help your company optimize your supply chain management to control product costs. Teamcenter provides you with a sustained, disciplined, and systematic spend management process for reducing the total costs of externally purchased materials, goods and services while maintaining/improving levels of quality, service and technology.
Through supplier integration, Teamcenter provides you with a collaborative environment to achieve better cost management and more effective product development and manufacture. You can leverage the expertise, market knowledge and resources of customers, suppliers and strategic partners to drive the development of more innovative products. You can connect procurement and suppliers more closely with engineering and design teams – earlier – to make better product decisions and help manage the change process.
Teamcenter synchronizes your product development and strategic sourcing processes so you can leverage your suppliers’ innovation potential as a strategic weapon in the battle for profitable growth.
Key Capabilities and Benefits
Supplier Relationship Management Solution Capabilities
- Collaborative request for information, proposal or quotation (RFx) management with detail cost breakdown
- Internet negotiation (reverse and Dutch auction) management
- Supply chain management and scorecards
- Spend analysis and management
- Supplier data exchange
- Supplier integration with Engineering for collaborative product development
- Reporting and analytics tools aggregate data from multiple sources
- Task, issue and quality management
- Cost-effective, flexible deployment and support
Supplier Relationship Management Solution Benefits
- Streamline procurement and sourcing processes
- Reduce product and process costs
- Speed sourcing cycle time for faster time-to-market
- Improve Procurement and Engineering productivity
- Manage quality and the change process
- Increase innovation in new product development
- Reduce Sourcing administrative overhead
