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Q: What types of materials does Supply Dynamics aggregate?
A: Materials such as:
- sheet metal and bar products (nickel, cobalt, titanium, stainless, aluminum, carbon steels, etc.)
- braze products
- electronic components
- thermal sprays
- weld wires
- tubes (all alloys)
- small fabricated parts
Q: Does Supply Dynamics work with OEM sites or the sub-tier suppliers?
A: Both. The focus of our Material Demand Aggregation Solution is to reduce costs and improve service levels for virtually any material that goes into OEM and the sub-tier supplier manufactured parts.
Q: Does Supply Dynamics work exclusively with specific mills, manufacturers or distributors?
A: No. Ultimately the decision regarding where to source materials rests exclusively with the OEM and its sub-tier suppliers. Supply Dynamics simply provides the process and the multi-enterprise platform to enable Material Demand Aggregation involving any number of mills and/or distribution sources. However, as a wholly-owned subsidiary of O'Neal Steel, the world's largest family-owned metals service center, Supply Dynamics is uniquely equipped to advise you on a variety of leading domestic and international sources. These include the sourcing of materials from qualified, non-traditional, low-cost sources.
Q: Can I buy my non-OEM end use materials through the program?
A: Yes, all materials, irrespective of the end-use customer, can typically be procured through a material Demand Aggregation Program. Ultimately, however, this decision rests with the OEM.
Q: When will I be able to begin purchasing materials through the program?
A: Typically within 120 – 180 days of program initiation by a sponsoring OEM.
Q: How does Material Demand Aggregation address unique specification, order form preferences, and service variables among vendors?
A: Material Demand Aggregation offers JIT delivery for stocked items and a sophisticated “early warning” system for managing non-stocked items with greater accuracy than ever before possible. Individual service level customization is easily accommodated.
Q: Why is Supply Dynamics essential to the Material Aggregation Process?
A: Traditional OEM material consolidation programs, often referred to as “Right to Buy Contracts,” invariably lack the robust program controls and enterprise-wide visibility necessary for sustained success. Complications such as sub-tier defections and the absence of an effective monitoring and enforcement mechanism are common to such programs. These and other common failure modes are eliminated under a Material Demand Aggregation program. Moreover, unlike “Right to Buy Contracts,” Material Demand Aggregation delivers on the promise to make the material source more efficient rather than relying on leveraged demand alone to secure the best price and service levels.
Q:Why do OEM sponsored material consolidation programs or “Right to Buy” contracts invariably fail to deliver the desired results and how does Material Demand Aggregation address those failure modes?
Problem with traditional OEM material
consolidation programs (Right to Buy Contracts)
Material Demand Aggregation Solution
|Consolidated material volumes that prices were predicated upon never materialize.||Utilizing OASIS a robust, sophisticated, hosted IT application; Supply Dynamics monitors and enforces program compliance over time to eliminate program leakage.|
|A big driver of cost and inefficiency in the material supply chain is the high degree of demand speculation at the material source. This impacts material lead-time and often results in material shortages or surplus, excess or obsolete inventory.||The Leading Indicator Report© generated by OASIS provides the materials source real-time information about aggregate material demand by specification and size over time, yielding dramatic improvements in material source performance.|
|Sub-tier suppliers are often reluctant to supply an OEM with highly sensitive Bill of Material data.||Supply Dynamics is an objective, impartial third-party which allows sub-tier suppliers and OEMs to share certain information while protecting information that either party deems proprietary, including granular Bill of Material information.|
|OEM’s often lack the personnel or “bandwidth” to effectively administer a complex cross-enterprise materials aggregation program where deep and broad material expertise is essential.||Supply Dynamics is comprised of materials and sourcing methodology experts, covering the full range of materials from metallics to fastening systems and electronic components. With Material Demand Aggregation, you are not just investing in a proven methodology, or even a sophisticated software system; you are contracting with full Bill of Material and process experts—problem solvers that are committed to your success.|
|Bills of Material manually collected are almost instantly obsolete due to finished part configuration changes and Bill of Material changes at OEM sites and sub-tier suppliers.||The Supply Dynamics Material Demand Aggregation methodology and OASIS application ensure that Bills of Material are always up-to-date and accurate.|
Q: What is OASIS and why is it an essential tool for effectively aggregating materials?
A: When it comes to restoring granular Bill of Material visibility and establishing control over material input costs across a supply chain, even the most advanced MRP or ERP system won’t suffice. OASIS (the Online Aggregation Strategic Information System) is a sophisticated, web-enabled, hosted IT application developed by Supply Dynamics. Unlike so many off-the-shelf MRP systems that are engineered to manage finished parts, OASIS was specifically engineered to manage the material-inputs that go into finished parts. Fully accessible by OEM’s, OEM sub-tier suppliers and material sources, OASIS forecasts aggregate material requirements based on OEM finished part demand. It also allows users to track and monitor the timely purchase and supply of materials ensuring that material is never the reason why a finished part is late. There is no other IT solution like it.
OASIS combines sophistication, simplicity and ease of use in an application that can accommodate a variety of unique material input items and completely integrates with disparate (legacy) MRP/ERP feeds from virtually any source (Oracle, SAP, WebPlan, EDI, CSV formats, etc).