tc8-overview srm

8/13/2019 Tc8-Overview SRM

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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved

Siemens PLM Software

Teamcenter 8


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Supplier Relationship Management (SRM)


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Supplier RelationshipManagement


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Teamwork is Difficult in Todays

Purchasing Environment

Purchase Order

10 + Access Databases

Supplier Signs LOI

SupplierA

Rationale

NP

V Analytics

Awa

rd

Recomme

ndation

Virtual Part File

Are we

there yet?

Buyer Chases Approvals

SupplierA

Buyer Emails RFQ

Supplier

B

SupplierC

Information

Buyer createsLetter of intent


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Integrated PLM/SRMFrictionless flow of information between Engineering,

Procurement and Suppliers

Improves Profitability

Provides Access to Information

Delivers a Competitive Advantage

According to the Aberdeen AdvancedSourcing Benchmark report respondentsbelieve product lifecycle sourcing drivesinnovation although only 35% reportSourcing involved in the product designphase

Source: McKinsey: Inventing the 21stCentury Purchasing Organization


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Teamcenter for SRM

Synchronization withProduct Development

Integrated Sourcing Process

Integrated Supplier

Management


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Synchronization with Product DevelopmentEngineering and purchasing data is fragmented & disconnected

BOMs

Programs

Buy to Specs

RFQs

SupplierCapabilities

SupplierScorecards

AwardDecisions

SpendData

QualityData

DeliveryData

Purchase OrderInformation

Component

Libraries

AnalysisDesigns


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Synchronization with Product DevelopmentSRM synchronizes engineering and purchasing data

Buy toSpecs

AwardDecisions

Spend Data(R2P systems)

Delivery andQuality Data

P.O. Data(for ERPsystems)

Engineering

Purchasing

Executives want theirsourcing teams to create

value through their

relationships with key

suppliers. Unfortunately the

same study found that

sourcing teams spend 70% oftheir time on tactical activities

with little value added to

those strategic relationships

A. T. Kearney, Assessment of

Excellence in Procurement


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Eliminates Buyers Chasing Data

Consistent Information

Synchronization with Product DevelopmentBenefits

Automates The Change Process


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Synchronization with Product DevelopmentEliminates Buyers Chasing Data

Spend Management consolidates data into a common reportingstructure for accurate, rapid and repeatable analysis

Demo


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Synchronization with Product DevelopmentConsistent information

Addresses complexity of datamanagement

Improves co-ordination amongbuyers, engineers and suppliers

Closes loop for bill of materialcost management

Demo


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Teamcenter for SRM

Synchronization with Product

Development

Integrated Sourcing

Process

Integrated Supplier

Management


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Best In Class

Purchasing Involvement

Traditional PurchasingInvolvement

Time

Abilityto

controlcosts

Product Development Timeline

Supports early involvement that drives cost savings

Source: McKinsey



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Integrated Sourcing ProcessThe Value

Reduce Cost of Goods Sold Increase accuracy of communication with

suppliers

Introduce low cost suppliers Re-use suppliers & materials to increase

volume leverage

Reduce Inventory and Spares Cost Reduce inventory costs through reduced

material costs

Reduce inventory requirement through re-use.Improve Purchasing Productivity Reduce manual effort to gather critical data

to make sourcing decisions

Reduce administration costs of suppliers &

materials

ResultsTC

SRMCurrent

Incom e Statement

Balance Sheet

Key Rat ios

s Revenue $1,000 $1,000

s Cost of Goods Sold $600 ($30) $570

s Gross Profit $400 $430

s Cash $91 $12 $103

s Inventory $140 ($12) $128

s Gross Profit Margin (BT) 40% 43%


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Supports Multiple Business Models

Cost Breakdown Capability

Integrated Sourcing ProcessBenefits

Automated RFx Creation


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Page 17 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved


Integrated Sourcing ProcessSupports centralized or decentralized business model

Package and assign by location

Reduces language and culturalchallenges

Delivers consistent, repeatableprocesses in a clear manner


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Integrated Sourcing ProcessAutomated RFx Creation

Automated transfer ofvisualization and specificationfiles

Automated RFx template

selection based upon items

Insures common data source

Organizational Cost Management Maturity

ValuetoOrganization

Standalone/Ad-hocFunctional

Teamobjective

Competitivemarket & customer

driven with NPDIprocess

Integrated withPLM & SRM forDesign-to-Cost

Demo


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Integrated Sourcing ProcessCost breakdown capability

Rapid analysis of suppliersproposals

Award decision automaticallypopulated in Teamcenter

costed BOM

Total cost transparency

Demo

RFx process that supportscommodity management arewoefully inadequate.the best

hope for leadership comes fromPLM vendors..

IDC

"Companies are going to have toachieve at least a 10 to 15 percent

productivity improvement over thenext two to three years just to stayin the game.

AlixPartners


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Teamcenter for SRM

Synchronization with Product

Development


Integrated SupplierManagement


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Integrated Supplier ManagementThe Need for Supplier Management

How critical is effectivesupplier management toyour organization?

AMR estimates up to 75% of avehicles parts come from thirdparty suppliers


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Supplier Registration and Content Management

Analyze Supplier Performance

Integrated Supplier ManagementBenefits

Categorize Suppliers and Their Capabilities Secure


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Integrated Supplier ManagementAchieving Value: The Supplier Integration Effect

50%

40%

30%

20%

10%

0%

-10%

-20%

-30%

Cost

Savings

Quality

Improvement

Time

Savings

Percentag

eofChange

20%

-15%

30%

50%

-25%

-12%

Most Successful Supplier Integration Efforts

Least Successful Supplier Integration Efforts

Source: Michigan State Global Procurement and Supply Chain Benchmarking Consortium

Successful supp l ier integrat ion

into new-produc t and new-

proc ess development act ivi t iescan result in cos t saving s,

increased qual i ty and time

savings.

Teamwo rk affects

more than c ost .


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Integrated Supplier ManagementSupplier registration and content management

Managing supplier records canbe a huge resource drain Leaving less time to understand

supplier capability

And even less time to mange

supplier performance

Example:

120,000 X 0.50 = 60,000 suppliers

60,000 X 0.20 = 12,000 suppliers

12,000 X 1 hours = 12,000 hours

12,000 hrs 2,000 hrs/yr =

6 work years


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Integrated Supplier ManagementCategorize suppliers and their capabilities

Identify

Qualify

Invite to Design

..category can't be managed to

cost savings aloneit needs anew approach that we refer to asPerformance Based Procurement

Bob Parker, Manufacturing InsightsDemo


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Integrated Supplier ManagementAnalyze supplier performance

Optimizes supplier performanceacross a full set of characteristics Satisfaction of design objectives

Quality

Availability

Traceability Cost

evaluating performance

measures is not a strength of

either the procurement specialistsor the ERP vendors. ..Look to your

PLM software provider first..

Bob Parker, Manufacturing

Insights


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Before Teamwork

Purchase Order

10 + Access Databases

Supplier Signs LOI

SupplierA

Rationale

NPV Analytics

Aw

ard

Recomm

endation

Virtual Part File

Are we

there yet?

Buyer Chases Approvals

SupplierA

Buyer Emails RFQ

Supplie

rB

SupplierC

Buyer createsLetter of intent

Information


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SRM

The Teamcenter Enabled Process

Supplie

rB

SupplierA

Su

pplierC

PLM

Issue Purchase Order

ERP


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Summary

Integrated Supplier Management - essential for capability &performance based selection

Integrated Sourcing Process - essential for strategic sourcing

Synchronization with Product Development - essential for productcost management


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Thank You

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