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Smart negotiation can potentially reduce costs, leverage buying power, and add value to transactions. But to conduct effective supplier negotiations, companies need reliable and up-to-date information on a range of pricing and non-pricing variables. An effective decision-support system is necessary to prepare and conduct negotiations, as well as to ensure that successful agreements are recorded and enforced through contract compliance management.
The i2 Solution: i2 Sourcing Execution
i2 Sourcing Execution is designed to provide negotiation tools to support the entire intent-to-contract process. The i2 approach recognizes that sourcing is driven by cost, supplier differentiation, and category pressures. i2 Sourcing Execution is designed to support the evaluation of both critical cost and non-cost factors, including readiness for vendor-managed inventory, logistics cost factors, and the qualitative value-adding contributions of suppliers.
The i2 solution can incorporate automated processes for assembling contract re-pricing requests for quotations and for structuring bill-of-material (BOM) negotiations. i2 Sourcing Execution can also provide total cost model capture, tiered pricing, and award scenario assessment tools. Companies can deploy this solution to conduct multiple bidding rounds, identify the plan that optimizes cost reductions and other business goals, and then forward those terms to the appropriate procurement execution system.
i2 Sourcing Execution capabilities can include:
- Supplier selection through a supplier catalog
- Template-driven request-for-quote assembly
- Site, time period, and price quote splits with tiered and total cost driver specification
- Browser-based supplier portal with alerts and email notification
- Weighted award comparison and scenario assessment
- Automated contract re-pricing and contract creation
Benefits of i2 Sourcing Execution can include:
- More frequent and effective negotiations through repeatable bidding
- Increased savings through complete cost visibility
- Timely accurate contracts through template-driven contract creation
- Sourcing improvement and consistency
i2 Sourcing Execution is part of the i2 New-Generation Supplier Relationship Management (SRM) solution suite. Comprised of design, sourcing, and procurement solutions, i2 SRM can enable companies and their suppliers to collaborate to create and manufacture cost-effective products faster. i2 SRM solutions help discrete manufacturers reduce time to market, improve quality, cut costs, and better manage product life cycles. i2 SRM solutions are built on the i2 Agile Business Process Platform, which provides a development suite based on a state-of-the-art service-oriented architecture, enabling companies to make system changes at the rate of business innovation and as business processes evolve.
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