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i2 Sourcing and Supply Management

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  • 1. i2 SOLUTION SHEET Sourcing and Supply Management Success requires continuous collaboration among purchasing, engineering, supply operations, i2’s solutions for supply management and vendor personnel. Companies must reduce their supply chain complexity in order to maximize enable you to: • Evolve an appropriate, reliable margins and launch products with agility. Products must be designed to match supply capabilities supplier base and preferences. Sourcing processes need to be streamlined to optimize direct material costs, and • Build the right pricing and effective collaboration is critical to enable the supply base to support and respond to changing needs. capacity relationships • Share with suppliers the visibility Designed with these best practices in mind, i2 Supplier Relationship Management™ (SRM) and they need to perform i2 Collaborative Supply Execution™ (CSE) provide a comprehensive approach for sourcing and supply • Align design to supply to optimize product cost and availability management with capabilities to cut across time-horizon, functional, and geographical boundaries. • Achieve 360° visibility and consistently manage exceptions Business Processes These solutions provide a comprehensive set of industry-leading software and services that delivers a closed-loop process designed for excellence in four key areas: Reuse and Design-for-Supply Achieving revenue targets depends on proactive design compliance and the successful management of sourcing options to ensure supply continuity. i2 SRM 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 lifecycle management and enterprise resource planning (ERP) systems. Internal and key supplier participants connect through a managed process for design content identification, review, and evaluation. This enables product teams to successfully minimize and forecast product cost, understand technology obsolescence risks, ensure market and regulatory compliance, meet sustainability objectives, leverage preferred supplier relationships, and coordinate supply throughout the product lifecycle. Part selection and design-for-supply assessment Sourcing Strategy and Execution i2 SRM provides an integrated environment that incorporates master data, process control, and business analytics to provide a closed-loop process for sourcing and procurement teams—including commodity management and opportunity analysis,
  • 2. i 2 S O U R C I N G A N D S U P P LY M A N A G E M E N T Sourcing Visibility & Analysis supplier identification and negotiation, total cost assessment, contract and pricing compliance tracking, and overall supplier performance management. Capabilities are provided for total, repeatable visibility—of spend, contract, and performance—across multiple sites and ranging from the commodity to individual part level. Analytic tools help identify opportunities for material rationalization or consolidation, purchase price variance, and both direct and outsourced spend aggregation. Negotiation processes for complex pricing and bidding of production quantity, multi-site sourcing are supported, along with advanced contract price modeling capabilities, to drive and monitor contract performance analysis in the extended enterprise context. Configurable scorecarding tools, as well as survey tools, allow for both quantitative and qualitative supplier performance and risk assessment. 2
  • 3. i2 SOLUTION SHEET Supply Collaboration Supporting the demand-supply match process for today’s supply chain requires Forecast Collaboration & Management understanding and allocating supplier capacity and sharing forecast visibility to gain reliable commitments that will satisfy execution-time demand. i2 CSE allows companies to manage multiple replenishment modes, including lean supply strategies across their multi-tier supplier base. Programs such as vendor-managed inventory, pull-based (kanban) replenishment, and other just-in-time strategies can be consistently managed in a closed-loop, consolidated environment for collaboration on capacity, forecasts, orders, material shipments, goods receipts, and invoices. This collaboration can take place across multiple divisions and facilities and along a continuous time horizon of increasing granularity. Maintaining Availability Execution Continuity Extending the collaborative approach from planning to execution enables companies to monitor the health of the supply network and help them react more quickly to changes in demand and supply through rapid “what-if” analysis and “incremental planning.” Through ties to planning solutions, i2 CSE can automatically execute on recommended schedules, make expedite, de-expedite, cancel recommendations, and provide guided problem-resolution workflows, thereby removing the latency, errors, and grief in meeting plan needs and enabling collaborative resolution of supply issues. 3
  • 4. i 2 S O U R C I N G A N D S U P P LY M A N A G E M E N T Business Impact Manage Product Cost For companies to remain competitive and grow, the focus needs to be on profit margins. Direct material costs typically account for as much as 80 percent of the cost of goods sold, and while outsourcing and offshoring can be leveraged to reduce costs, those cost savings can occur at the expense of lead time, total cost, and complexity. Organizations must work internally and with partners to successfully target costs throughout the product lifecycle. i2 provides the supply management tools to manage and reduce product costs throughout the overall product lifecycle. Users can align actual costs with margin targets, retaining market share and overall profitability. Control Supply Risk i2 solutions for supply management drive toward perfect material availability, thus ensuring commitment attainment and customer satisfaction. The resulting benefits can be measured in reduced direct material spend, improved “say-do” performance and customer order fulfillment, reduced inbound supply chain and logistics costs, lower inventory levels, and shorter cash-to-cash cycles. For more information on i2 Sourcing and Supply Management and other i2 solutions, visit www.i2.com. 11701 Luna Road Dallas, Texas 75234, USA Phone 1.877.926.9286 Email info@i2.com Web www.i2.com i2, i2 Technologies and The Supply Chain Company are registered trademarks of i2 Technologies US, Inc. i2 Sourcing and Supply Management, i2 Supplier Relationship Managmenet and i2 Collaborative Supply Execution are trademarks of i2 Technologies US, Inc. All other company names are trademarks of their respective owners. ©Copyright 2009 i2 Technologies US, Inc. Printed in the United States of America. SNS-7491 (10/09)

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