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i2 Total Supply Management’s comprehensive set of industry-leading software and services delivers a closed-loop process designed for excellence in four key areas of supply management.
Driving Target Cost Sourcing through Product Life-Cycle Cost Management
For companies to remain competitive and grow, the focus needs to be on profit margins—the sales price is driven by the market, and margin targets are set by management. But the one thing that can be controlled is cost, and direct material costs typically account for as much as 80% of the cost of goods sold. Outsourcing and off-shoring can be leveraged to reduce costs, but at the expense of lead time, total cost, and complexity. Organizations want to find the most effective ways to work internally and with partners to successfully meet target costs for every stage of the product life cycle.
i2 Total Supply Management provides solutions to manage the product costs through the overall product life cycle, with the capability to define target costs and compare them with actual costs. The solution enables costs to be loaded in for components and sub-assemblies from various internal or supplier-provided inputs and can perform multi-tier cost roll-up to the product level. The cost elements not only incorporate sourcing or supplier prices but additional transformation and uplift costs like assembly, manufacturing, and transportation costs. This gives users the ability to view the total product costs with their elements and drive actual costs to meet targets over the product realization cycle. Through these processes and the ability to examine and compare prices from multiple suppliers, users can align costs with margin targets, retaining market share and overall profitability.
Design and Reuse Excellence
Achieving revenue targets depends on proactive design compliance and the successful management of sourcing options to ensure supply continuity. i2 Total Supply Management provides a complete component sourcing and tiered bill of material improvement solution for today’s complex product manufacturing enterprise. It integrates design- and sourcing-team collaboration and interoperates with enterprise product life-cycle management and ERP systems.
Internal and key supplier participants are connected in a managed process for design content identification, review, and evaluation. This enables product teams to successfully minimize and forecast product cost, ensure market and regulatory compliance, leverage preferred supplier relationships, and coordinate supply throughout the product life cycle.
Sourcing Strategy and Execution Excellence
Designed with the knowledge that sourcing is driven by cost, supplier differentiation, and category pressures, i2 Total Supply Management provides an integrated closed-loop process that incorporates:
- Visibility (spend and key performance indicator analysis)
- Strategy (commodity management and allocation)
- Execution (negotiation, contract management)
- Compliance and performance management
To address global sourcing and distributed enterprise operation, capabilities are provided for total, repeatable visibility across sites. Companies achieve insight into category-to-part number, time, material, and direct and outsourced vendor spend, as well as related supply key performance indicators, such as delivery/quality. This visibility enables the evaluation of critical breakdown and landed-cost elements, as well as non-cost factors, including readiness for vendor-managed inventory and the qualitative value-added contributions of suppliers.
Supply Collaboration and Continuity Excellence
With increasing globalization, outsourcing, and low-cost country sourcing, there has never been a greater need for collaboration among all partners in the supply network. i2 Total Supply Management provides buyers and suppliers with a closed-loop, consolidated environment for collaboration on various types of material and capacity information. This collaboration can take place across multiple divisions and facilities and along a continuous time horizon of increasing granularity. Trading partners can collaborate on forecasts, promotions, orders, shipments, goods receipts, and invoice.
i2 Total Supply Management delivers multiple replenishment strategies such as customer scheduled shipments, vendor-managed inventory, Kanban, and other just-in-time programs. Intuitive performance measures and dashboards enable buyers and suppliers to monitor the health of the supply network. Configurable, guided problem-resolution workflows enable buyers, supply coordinators, and suppliers to collaboratively resolve supply issues to ensure reduced procurement costs, higher planner productivity, maximum demand fulfillment, and revenue potential.
Managing supply risk and reducing costs while maintaining revenue focus
Each of these areas of excellence individually and collectively help to manage the supply risk inherent in today’s global supply chains. i2 Total Supply Management drives toward perfect parts availability, thus ensuring maximum facility throughput. The resulting benefits can be measured in reduced direct material spend, increased compliance, reduced inbound supply chain and logistics costs, improved user productivity, decreased inventory, increased revenue potential, and shorter cash-to-cash cycles.
Want to learn more? Contact Us, call +1-800-800-3288, or contact your nearest i2 sales office.
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