Reduce Supplier Spend

Strategic Supply Chain Alignment Reduces Supplier Spend

Challenges

The unmanaged proliferation of parts, materials and suppliers across product lines and business units is a common and serious issue. Sourcing duplicate parts at different prices from the same or different supplier occurs more often than it should. Engineering specifies parts without fully understanding critical supply chain information such as lead time, cost and preferred suppliers. This lack of strategic supply chain alignment during the product planning and development process undermines your efforts to reduce complexity, cost and risk across the enterprise.


Impact

Growing complexity in your product and supply chain leads to sub-optimal supplier spend, high inventory levels, obsolete components and low sourcing and supplier management productivity.


What's Possible

You can reduce supply chain complexity and cost by rationalizing parts, materials and suppliers and by implementing a common, shared part library between engineering and sourcing. With this approach, you’ll be able to communicate preferred suppliers and critical part information to be used during the part selection process, optimize part volume and supplier spend, prevent proliferation of duplicate or similar parts, and increase inventory turns.

Process Improvement Opportunities

The most successful companies reduce supplier spend by transforming one or more of these key processes:

Management

 

  • Program and Portfolio Management: Drive innovation, optimize collective value, manage risk and make trade-off decisions across a set of programs while ensuring alignment with strategic objectives.
  • Change and Configuration Management: Evolve products in an orderly fashion, from concept through retirement.
  • Regulatory Compliance: Determine product regulatory obligations, collect and assess evidence of compliance, communicate results to internal stakeholders and report evidence of compliance to customers and regulators.

Hardware and Software Engineering

 

  • Variant Design and Generation: Define and manage multiple product configurations to satisfy customer-, region- and market-specific needs and accommodate design alternatives and improvements.

Supply Chain and Manufacturing

 

  • Component and Supplier Management: Enable effective selection, creation and incorporation of preferred parts and suppliers during the product development process, including the management of associated relevant characteristics.
  • Design and Manufacturing Outsourcing: Engage with a third party to deliver a hardware/software system, sub-system, component design or design services.
  • Product Cost Management: Enable early and ongoing visibility into detailed cost drivers and evolving estimates to ensure products meet landed cost targets.












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PTC Solutions

PTC offers a comprehensive portfolio of solutions to help manufacturers reduce supplier spend. To learn more, select any of the solutions below: