COORDINATED NETWORK PROCUREMENT
In
the automotive and industrial sector, evolving business
strategies have challenged the architecture of the traditional
supply chain and the buying strategies that determine
whether a company wins or loses on cost. Three mega
trends have emerged in recent years:
- Promotion of large Tier
One suppliers to a Full Service Supplier role
- The increased use of outsourced
manufacturing
- Extreme globalization of markets
and sources of supply
These trends affect a company’s
ability to execute – to compete on both innovation
and cost.
In the new, distributed business
model:
- Process responsibility
is shared across organizations, enterprises, and tiers.
- Supplier relationships are multi-tier
– not just point-to-point
- And it is easier to get caught
up in disparate behaviors that cost time and money
Challenge
Get the most value out of materials (the stuff that
goes into the things that make your end product).
- Manage price agreements
across multiple tiers of relationships
- Optimize the price-to-performance
ratio of materials
- Focus part suppliers on transforming
materials in parts – not buying materials
- Ensure continuity of supply,
including buffering manufacturing operations from
volatile material prices
- Execute with process efficiency,
including resolving disputes in a timely manner
- Provide the basis for innovation
– new material ideas that differentiate the
end product.
TOP
Solution
Newview’s Coordinated
Network Procurement application is focused on materials
that exist at the “Bottom of the Bill of Materials”.
These may include raw materials, fabricated parts (with
high raw material content), and standard components
(other things that get lost in the details).
With better management of this segment of materials,
a company can:
- Reduce direct material costs
by 5-10%
- Reduce administrative costs through
process automation and the timely resolution of disputes
- Improve working capital efficiency
by accelerating the invoice-to-pay cycle and reducing
inventory expenses
Newview’s CNP is the only solution
designed with a full set of processes to manage the
complex environment of raw materials, fabricated parts
and other components that exist at the “Bottom
of the BOM”.
|
COORDINATED
NETWORK PROCUREMENT |
| Multi-Enterprise
Procurement |
Supports
a variety of sophisticated buying strategies including
resale, rebate and directed buy |
| Price
Management |
Supports
the complexities of multi-tier pricing; manages
price changes through effectivity logic |
| Sourcing |
Manages
the relationship between materials and their sources,
including highlighting the “preferred”
company sources for a material |
| Transact
Purchase Activity |
Manages
the flow of purchases, shipments, and receipts to
the appropriate parties per the buying strategy |
| Self-Service
Claims Processing |
Provides
a process for material and parts suppliers involved
in sophisticated procurement programs to resolve
claims issues of a physical or financial nature |
| Settlement |
Gives
the financial user the control to initiate billing
activities at the touch of a button. Where appropriate,
automates the process of netting a supplier’s
raw material obligations from their outstanding
receivables. |
| Built
on Newview's Network
Business Process Architecture™ |
For quick reconfiguration of roles and processes
with integration to existing systems |
TOP |
