S U P P L I E R R E L AT I O N S H I P M A N A G E M E N T
JDA Software: Aligning Design and Supply for
Increased Profitability and Performance
Manufacturers are realizing top- and bottom-line
results through enhanced supplier relations,
parts management and design-for-supply.
S U P P L I E R R E L AT I O N S H I P M A N A G E M E N T
Why do companies worldwide rely on JDA Software to deliver value in supplier relationship
management?
Real Results. Fast.
JDA Software helps the world’s leading discrete manufacturing companies achieve tangible benefits through
enhanced supplier relationships. Here are some of the real results that our customers have achieved with JDA’s Supplier Relationship Management (SRM) solution*:
• Engaged enterprise coordination of shared and preferred parts to drive reuse across multiple business groups • Coordinated design-sourcing cost improvement business process based on stage-gate model
• Minimized cost of goods sold (COGS) and differentiated supply base with optimum global sourcing and commodity management
• Gained the ability to handle 7,000 to 8,000 RFQs per site • Added speed, efficiency and reliability to purchasing activities • Enabled purchasers to collaborate with product designers
• Reduced time-to-market through logical-to-physical design synchronization • Achieved programmatic new part introduction (NPI)
• Attained Restriction of Hazardous Substances (RoHS) regulatory compliance
• Gained visibility into cross-functional part specification and component availability data for low- to high-end product groups
* Represents actual results realized by JDA customers
Challenge: Increased Regulations and Customer Expectations
Faced with an increasingly regulatory environment and expanding customer expectations regarding product quality and price performance, manufacturers today are challenged to achieve across a broad range of competencies and requirements. These organizations must effectively define and source required parts and materials that meet product revenue and margin goals, support procurement objectives and ensure adequate online supply for successful product launches. They must also plan for and react to obsolescence considerations while sustaining consistent production and support over the entire product lifecycle. In addition, with growing environmental sustainability concerns driving increased industry regulation, manufacturers must ensure compliance with stipulations outlined in RoHs, Waste, Electrical and Electronic Equipment (WEEE), REACH and other environmental regulations.
The increasing rate of product introductions and shortening component availability lifecycles, plus the changing shape and stability of both the supply market and individual suppliers, create an urgent need for improved risk management. New product innovations and evolving in-sourcing and outsourcing strategies are impacting supply networks and even creating entire new supply chains. Many businesses are finding that they must employ a more cohesive, integrated approach to manage both the technical and the relational aspects of inbound supply management.
Today’s enterprise profile involves a constant cycle of change, including multiple product lines, business units and combinations of part-numbering schemes and/or suppliers resulting from mergers and acquisitions. As a result, organizations must leverage a data management approach that connects the dots and provides the capabilities and user experience required by various functional teams, along with the configurability to allow cost-effective implementation and flexibility for future growth.
Solution: Streamlined Supplier Relations, Parts Management and Design-for-Supply
JDA Software’s integrated SRM approach provides a bridge between design and procurement functions and their respective data and strategy requirements. With JDA’s solutions, you can ensure that approved or preferred part and
S U P P L I E R R E L AT I O N S H I P M A N A G E M E N T
supplier guidelines are embedded into the engineering parts selection process during design, and that they can be monitored over the development cycle, mid-lifecycle rationalization and improvement activities.
JDA’s Supplier Relationship Management solution employs a common master data approach with modular applications targeted at design, sourcing, procurement, and component and material management functional engineering teams. Core solution functions provide visibility into which items your organization buys from which suppliers, including information such as the identity, functional specification and interchangeability of items, supplier identity and profile, as well as the qualification and approval rules that determine applicability across different divisions, programs or specific product lines.
Elevating the Design Function
JDA Supplier Relationship Management facilitates the design function by driving effective reuse and preferred parts management capabilities with inheritance-based technical classification and advanced cross-referencing to map manufacturer or vendor part numbers against multiple internal schemes. Color-coded preference ranking based on supplier standing or technical rules guide your engineering teams with an intuitive zero-training, Web-based application interface. Configurable workflow support based on Service Oriented Architecture (SOA) provides new part or supplier introduction management between your engineering and procurement functions for material rationalization and lower carrying costs. These workflows also provide the coordination capabilities necessary to address concerns such as change or buy decisions triggered by obsolescence or RoHS compliance issues, in addition to managing synchronization of master data with enterprise resource planning (ERP) or product lifecycle management implementations.
You’ll be able to conduct extensive design-for-supply improvement enabled by an integrated bill of materials (BOM) assessment desktop tool for evaluating overall BOM health and lifecycle profile, sourcing preference alignment and design-to-cost analysis. The desktop provides graphical feedback and highlights issues across multi-level BOMs, plus leverages an integrated “resolution” tool that identifies candidate part substitutions permitted under approved vendor list rules, highlights the critical information and then circulates the redlined BOM back to all of the key individuals so that they can collaboratively find the most prudent solution.
Success through Effective Sourcing
JDA Supplier Relationship Management addresses your sourcing needs with an enterprise aggregation and visibility capability for cross-site, item-level spend, demand and receipt information to drive the strategic sourcing process. The solutions identify spend leverage opportunities based on purchase price variance, inconsistent procurement policy execution and material consolidation possibilities. This highly scalable and configurable function also integrates with the ERP and procurement execution systems typically present across the distributed enterprise for maximum data leverage and utility.
JDA’s Supplier Relationship Management solution also includes integrated supplier performance management
capabilities to support risk and reward tradeoffs to drive consistency into your supplier relationships. Since performance measurement ideally should reflect both quantitative and qualitative metrics, a configurable survey tool enables structured evaluation of subjective criteria both for calibrating your company’s internal experience with a vendor, as well as for obtaining feedback and insights from the vendor via supplier self-assessment.
Airbus SAS Finmeccanica SpA Galileo Avionica SpA GES International Limited Honeywell International Inc.
Lockheed Martin Integrated Systems & Solutions Northrop Grumman Information Systems Rafael Advanced Defense Systems Ltd. Rockwell Collins, Inc.
Samsung SDS Co., Ltd. Sandia National Laboratories Schneider Electric SA
The Tokyo Electric Power Company, Inc. Toshiba Semiconductor Company
“JDA solutions are optimizing Toshiba’s
business processes by enabling us to conduct
purchasing activities more efficiently, with
greater speed due to the Web and with more
reliable suppliers. Our implementation also is
enabling us to handle a large volume of RFQs
– between 7,000 and 8,000 per site at six of
our major factories in Japan.”
Seijiro Suzuki Chief Information Officer, Toshiba Semiconductor Company
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This function can be integrated with a rich contract management capability to track and model agreed-pricing relationships with site-specific, volume, discounting and rebate functions. Thus, opportunity assessment can be extended to provide broad compliance management to control leakage, project and analyze baseline cost savings and monitor not only contract deadlines but overall contract performance – from the internal or the supplier perspective. JDA’s sourcing solution also offers template-based RFQ generation and negotiation management to fulfill the execution phases of the overall sourcing process.
Since the solution provides your team with accurate parts and material data, the approach ensures a consistent, efficient process that supports negotiation for multi-site, multi-item quotations with provisions for volume breaks and offline bid development by vendors. Additionally, integrated bid analytics enable cost- or value-based award decision making, vendor notification and automated contract master updates. This flow can also be reversed to automatically populate RFQs based on current contract data to drive efficient re-pricing evaluations with your current or potential suppliers.
Requirements JDA Capabilities Benefits Parts &
Preference Management
• Provides broad part-number and cross-referencing flexibility
• Includes inheritance-based hierarchic classification schema
• Offers static and rule-based preference assignment • Provides multi-level, multi-project approved vendor list
and approved material list support
• Consolidates complete and accurate source-path identification
• Reinforces sourcing and leverage objectives • Eliminates legacy part-numbering rework • Integrates enterprise, divisional or
product-specific usage rules
Reuse & Part Selection
• Includes fast, user-friendly Web-based “find” function • Provides index-based progressive search refinement • Delivers zero-training, intuitive user experience
• Facilities high user-adoption levels
• Supports both casual, infrequent and expert users
• Minimizes deployment costs
NPI & Material Rationalization
• Manages using configurable new part and supplier introduction workflows
• Offers category-specific routing, “claim” and task assignment, as well as tracking and audit trails
• Includes similar and equivalent part or material analysis
• Eliminates redundant part introduction and inventory carrying costs
• Reduces active part population
• Increases spend leverage for COGS reduction
Obsolescence & RoHS Management
• Contains multi-level BOM analytics for assessing BOM health, lifecycle stage and RoHS and REACH regulation compliance
• Provides iterative replacement or substitute determination with redlining for BOM improvement collaboration • Offers issue management for part change notices and
last-time buy responses
• Ensures effective product introduction and launch revenue capture
• Drives down lifecycle costs and minimizes surprises
• Supports buy-versus-change tradeoff decisions and improves inventory consumption
• Ensures regulatory compliance and product sustainability
Design-for-Cost & Supply
• Provides target cost and BOM cost rollup assessment • Includes approved vendor list and preferred supplier
compliance reporting
• Provides program/project or division-based compliance and qualification modeling
• Enables effective target cost attainment to meet margin goals
• Identifies cost or supply risks to drive early resolution
• Meets product-line or customer-driven content requirements
• Improves agility to meet product demand variation
Commodity Management
• Enables multi-site, item-level spend, demand and receipt rollup
• Provides commodity manager and buyer portfolio desktops
• Offers complete sourcing line-of-sight tracking for material and spend with through-tier visibility • Provides allocation modeling capabilities
• Reduces COGS with optimal enterprise spend leverage
• Coordinates enterprise practices for suppliers and outsourcing partners
• Supports supply-base configuration alignment with strategic objectives
Supplier Performance Management
• Offers configurable technology, quality, responsiveness, delivery, cost and environment (TQRDCE) scorecard support
• Includes interactive survey and subjective performance assessment
• Provides supplier differentiation and ranking assessment and coordination
• Drives overall performance improvement • Supports supplier differentiation strategies • Integrates quantitative and qualitative
evaluations
• Ensures consistent vendor treatment with controlled transparency
Cost & Contract Compliance
• Offers purchase price variance and baseline cost savings analysis
• Delivers advanced price modeling with ship-to/from, volume, discounting and rebate support
• Provides contract compliance analytics and alerts
• Finds and eliminates spend leakage and procurement execution compliance issues for COGS containment
• Provides enterprise agreed-price master function
• Empowers opportunity identification and contract leverage for optimal cost advantage
Requirements JDA Capabilities Benefits Source & Price
Negotiation
• Includes template-based new or re-pricing RFQ creation • Contains compliance and award approval workflows • Offers Web-based RFQ with offline response and bidder
channel support
• Provides award analytics and integrated contract updates
• Ensures vendor interaction consistency and procurement policy compliance
• Improves operating costs and cost-to-source • Reduces preparation efforts to allow more
frequent negotiation and re-pricing cycles
Coexistence & Configurability
• Includes SOA-based enterprise process and data flow configuration
• Delivers flexible data modeling with automatic view generation and user permissibility
• Provides appropriate security, Lightweight Directory Access Protocol (LDAP) and IT standards support
• Coexists with with key enterprise and legacy systems
• Manages master data coordination and synchronization
• Reduces implementation and ongoing ownership costs
• Adapts to proprietary and evolving business requirements
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M A N A G E M E N T
Align Design and Supply for Increased
Profitability and Performance
To address a growing regulatory environment and increased customer expectations, companies must streamline their supplier relations, parts management and design-for-supply processes. With JDA’s Supplier Relationship Management solutions, companies can ensure that guidelines for preferred parts, material reuse and suppliers are incorporated into the product design process.
Transform your business by using JDA solutions to: • Bridge the procurement and product design
functions for lean supply management • Increase speed, efficiency and reliability of
purchasing activities
• Gain visibility into cross-functional part and component availability
• Reduce cost of goods sold and improve inventory consumption
Now you can be among the JDA Supplier Relationship Management customers reporting outstanding results with the following components:
• Product Sourcing • Contract Management
• Component Supplier Management • Strategic Sourcing
• Negotiate • Part Navigator
JDA® Software Group, Inc., The Supply Chain Company®, offers the broadest portfolio of supply chain, retail merchandising, store operations and all-channel commerce solutions to help companies manage the flow of goods from raw materials to finished products and into the hands of consumers. JDA’s deep industry expertise and innovative cloud platform help companies optimize inventory, labor and customer service levels. As a result, JDA solutions have become the standard for the world’s leading retailers, manufacturers and distributors.
About JDA Software Group, Inc.
Protect your JDA software investment and increase business agility by having JDA experts manage, monitor and maintain your JDA solutions. JDA Cloud Services reduces your implementation time and risk while enabling you to quickly and easily deploy new functionality to keep pace with your changing business needs. With your software running in the cloud and upgrades included in your service, you will benefit from solutions that are optimized for your specific business requirements to help ensure that you achieve and sustain a long-term return on your investment.
Deploy JDA Supplier Relationship Management
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