Industry Overview

Hardware-Fasteners markets are perhaps the least understood and most opportunity rich areas for supply chain optimization. Hardware may range from low-dollar, high volume standard items (i.e. rivets) to high-dollar, low volume items that are utilized in critical load bearing parts of a product or assembly (i.e. self-locking nuts). The sheer number and diversity of part numbers for this Commodity creates unique challenges that demand rigor and discipline in planning, production, and inventory management processes associated with them. Moreover, due to their position deep within the bill-of-material hierarchy and commonality across multiple upper-level parts and assemblies, accurate forecasting and staging of inventory can be a challenge without a robust multi-enterprise solution to connect the dots..

Factors that demand attention:

  • Large growth in supported industries
  • In large extended enterprises Hardware and Fasteners are often categorized as ”C-Class” items, subordinate to higher dollar “Class A and B” parts.  This masks the potential for an overpriced nut, bolt, insert or washer to cause significant up-stream challenges if it is not where it needs to be in sufficient quantity  to support production.
  • Long Lead-times often stretch to 12 or more months
  • Pricing is heavily dependent upon aggregate volume purchased and minimum lot sizes
  • Large variations in pricing for the same item
  • Items are often sole sourced
  • Duplication of Hardware & Fastener part numbers serving the same function
Supply Dynamics SDX™ 8.0 Platform Solution Capabilities

  • Extended Bill of Resource Management
  • Supplier Bill of Material Validation and Change Management
  • Consolidation of Hardware and Fastener Demand
  • Multi-Tier Forecasting, Planning & Broadcast
  • Multi-Tier Sourcing & Procurement
  • Part number standardizations by head type, thread count, etc.
  • Supplier Rationalization
  • Price & Supply Risk Management
  • Extended Supply Chain Visualization
  • Hardware and Fastener Attribute Standardization
  • Extended Supply Chain Visualization
Engaging Supply Dynamics: 

We play an integral role from initial client contact through ongoing solution support.  Supply Dynamics works directly with clients or in partnership with leading global service providers.  Our phased value approach and supporting processes deliver benefits at each stage of interaction.

Stages include:

Pre-Sales Activity

  1. Identifying initial strategy & value areas
  2. Develop scope for SDX Opportunity Assessment designed to identify & highlight cost savings and efficiency opportunities.
  3. Plan and conduct SDX Opportunity Assessment (on site).

Solution Configuration

  1. Assembling initial ‘Extended Bill of Resource’ Model.
  2. Part Attribute Characterization.
  3. Load production materials and product part numbers (alloy, grade, specification, form, size, hardware & fastener attributes, and volumes.)
  4. Load materials, product part numbers, parts and BOM hierarchies in SDX™ 8.0 Platform
  5. Link finished part forecast to production material and product part number requirements.
  6. Multi-Tier Sourcing Models (e.g. Directed Buy, Buy-Sell Resale, and others).

Solution Deployment

  1. Deploy ‘Cloud Based’ Instance of SDX™8.0
  2. Provide an interface for stakeholder interaction and validation of information

Ongoing Support & Services

  1. Provide help desk support.
  2. Provide ongoing platform support, maintenance, enhancements and new solution capabilities on product roadmap.
  3. Add new commodity categories and/or sourcing models to SDX 8.0 Platform
  4. Provide Supply Network analyses & reporting as a Service.
Value Drivers

  • Leverage aggregate volume to gain commercial benefit with producer.
  • Eliminate non-value add margin est. > 20 percent (over and above margin on value-added services).
  • Standardize production material forms, sizes and specifications.
  • Proactively expedite the timely purchase and supply of production materials across the extended supply network.
  • Provide forecast of elemental inputs to support financial risk management strategies.
  • Improved forecasting & planning.
  • Ensure continuous supply and capacity to avoid supply interruptions.
  • Recover scrap/revert value.
  • Reduce delivery variances through better coordination.