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AGGREGATE DEMAND
& CONSOLIDATE SPEND

Solution Overview

Understanding aggregate production spend for critical part and material inputs is essential to controlling the cost of finished goods and managing supply chain risk. Supply Dynamics Demand Aggregation Solution provides the framework and capabilities that allow manufacturing companies to recapture and model the part-to-material-to-finished good relationships and build consolidated views and reports of aggregate ‘network spend’ for key categories (See Figure 1.0 below). We define ‘network spend‘ as the combination of production material volumes that are sourced (a) directly for internal consumption (by division, business unit and in total), and (b) indirectly by external sub-tier part suppliers on your behalf. Analysis of aggregate demand by commodity category, grade, specification, form and/or dimension provides the decision support tools for evaluating sourcing policies decisions and implementing alternative sourcing models and centralized buying programs to reduce cost, supply risk, and improve overall supply chain efficiency.

Highlights & Capabilities

Aggregate Network Demand & Consolidate Spend OEM’s can generate multi-dimensional analysis of aggregate production material demand (Network Demand) and consolidate-manage their total spend. This includes purchasing activity for materials that flow into internal part production that may be distributed throughout their enterprise. SDX™ 8.0′s powerful parametric search predefined and ad-hoc reporting empowers the user to create unique analysis of any relevant set of attributes, and share it with selected trading partners and supply network stakeholders.

  • By Commodity Category; By Grade; By Specification; By Form and/or Dimension; By Elemental input; By Material Source By Geography: By Manufacturing / Part Transformation Process; By Economic Value/Spend,  etc.

Supports Rapid assembly of work packages for creating of intelligent RFQ’s.

Business Value & Benefits

  • Leverage aggregate volume in negotiations to gain commercial benefit with material source.
  • Supports rapid development of intelligent RFQ’s
  • Share aggregate material requirements with material source to ensure load, capacity and supply continuity.
  • Ensures supply across multiple tiers of the supply chain, enabling a demand-driven supply network.
  • Supports adjacent SDX™ 8.0 Solution Value & Benefits
Figure 1: Example of SDX 8.0 Aggregate Demand Views Charting