|
Total Landed Cost Sourcing is designed to help automotive companies determine the supply chain conditions required to make profitable low-cost country (LCC) sourcing decisions.
Capabilities of the i2 solution for total landed cost sourcing can include:
- Gather and manage relevant data including parts demand volume; segmentation of demand; supplier capacity; supply chain structure; parts cost; transportation routes and rates; taxes; duties; various types of fixed, step and variable costs; as well as currency exchange rates
- Optimize design of procurement, manufacturing, distribution and transportation network
- Optimize location and size of inventory buffers across multiple-echelons of the supply chain
- Combine supply chain information and traditional supplier metrics to enable a robust global sourcing and supplier negotiation process
- Compare various sourcing alternatives by creating, analyzing and managing multiple “what-if” scenarios to evaluate relative trade-offs
- Select the “best” sourcing strategy to implement and archive both outputs and the inputs to enable a closed-loop sourcing process
- Configurable workflows and optimization components leveraging the i2 Agile Business Process Platform
Benefits of the i2 solution for total landed cost sourcing can include:
- Cost reduction
- Implement and monitor a profitable LCC sourcing strategy supported by an institutionalized quantitative analysis process
- Quantify and measure impact of supply chain risk on LCC sourcing strategy
- Facilitate collaboration among procurement, manufacturing, logistics, supply operations, finance, as well as sales and marketing to support a truly global sourcing process
|
