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Impact

Systematically building a model that provides an accurate understanding of the parts, materials, special processes, capacities, and related dependencies that exist at critical points throughout your extended value chain is a powerful tool for managing risk and capturing value. Through collaboration, coordination, and control of the extended value chain, opportunities not easily seen beyond the first tier of supply are now accessible.  Proactively manage parts of your supply network, set trigger points for critical variables, monitor volatility and key constraint points, and proactively take actions mitigate potential issues.

Consider the consequences of being caught off guard, forced to fire-fight an unexpected production line shutdown or missing an important delivery commitment.  The result is likely to have a much greater impact on the bottom line—certainly more than what can be anticipated or covered in a supply agreement.  Operating in the current business environment where supply and demand variability, extreme market volatility, and widespread financial instability are an economic reality,  actively engaging in the coordination of critical variables throughout the extended value chain has never been more important.

How we deliver value

Capturing value trapped throughout the extended supply chain is achieved by:

  • Reconnecting finished part demand to the raw materials, parts, transformation processes, and capacities for the extended value chain — this data is assembled in the SDX™ 8.0 Multi-Enterprise Solution;
  • With this solution framework and data model in place, our clients have access to powerful, domain specific business intelligence and reporting capabilities that allow them to consolidate their aggregate ‘network’ sourcing requirements, communicate and leverage their demand, reduce part-material complexity, eliminate excess network inventory, hedge material volatility, and ensure supply continuity;
  • Drive new levels of compliance and rationalization of complex materials to yield quality improvements and lower total costs;
  • Monitor & verify ongoing supply network activities to ensure sourcing program compliance;
  • Identify and take action to resolve potential issues before they happen

Our clients realize sustainable cost savings ranging from 9 to 15 percent of their Costs of Goods Sold (COGS).