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For manufacturing companies, spend takes place at the item or module level across individual purchase order lines and physical facilities. With production often spread across multiple organizations, including offshore or outsourced suppliers, companies need more than category-specific or occasional spending analysis.
The i2 Solution: i2 Sourcing Strategy and Performance Management
i2 Sourcing Strategy and Performance Management is designed to allow companies to automate spend analysis and compliance management, while evaluating and improving category sourcing, supplier differentiation, and supplier performance.
This i2 solution applies a closed-loop approach to create proactive spend strategies that can allow companies to diagnose and resolve contract and supply performance exceptions.
i2 Sourcing Strategy and Performance Management can allow companies to better understand cross-product spend by site, item, and category, to better manage sourcing portfolios, and to determine optimal spend allocations.
Companies can deploy this solution to strengthen incentive and renewal efficiencies, and to develop and share scorecard metrics designed to improve overall sourcing and relationship effectiveness.
i2 Sourcing Strategy and Performance Management capabilities can include:
- Scalable item-level spend for direct, maintenance, repair, and operations (MRO), and indirect categories
- Integrated qualitative and quantitative performance scorecards
- Spend visibility by supplier, site, or timeframe
- Historical and projected spend information for contract negotiations
- Alerts to buyers and commodity managers of discount and rebate thresholds
Benefits of i2 Sourcing Strategy and Performance Management can include:
- Strengthen purchasing leverage
- Increasingly strategic supplier relationships
- Reduced supplier maintenance costs through a rationalized supply base
i2 Sourcing Strategy and Performance Management 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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