A portfolio of configurable strategic sourcing solutions that enablessourcing professionals to become an integral part of all productlifecycle stages.

Teamcenter for supplierrelationship management:strategic sourcing

www.siemens.com/plmSiemens PLM Software

In today’s economy, yourcompany is faced withintense pressure to increasetop-line revenue growth,while reducing overallproduct costs.

To meet these businesschallenges many companieshave shifted more of theirproduct development,component assembly andinventory requirements totheir supply chain, increasingsupplier dependency torespond quickly and costeffectively to product changesand customer requests.

This increased reliance onsuppliers has placed sourcingand procurement teams inthe critical path of productdevelopment and time-to-market.The need for design,engineering, procurementand suppliers to collaborateeffectively has never beenmore important.A rapidlychanging competitivelandscape, globalization andlow cost country sourcing areall factors that can challengeyour organization’s efforts todeliver products to themarket faster while stillmeeting cost targets.

Sourcing departments canno longer rely on yesterday’stools – emails, spreadsheetsand disparate corporatedatabases to execute theircritical tasks. In response,companies are racing to shiftaway from chaotic tacticalsourcing activities and movetoward a more strategicapproach to sourcing whichmaximizes productivity andaccuracy, while engagingsuppliers earlier to design thecost out of products. Recentstudies indicate involvingprocurement and suppliersat design inception anddevelopment can resultin cost reductions ofnearly 18 percent comparedto companies delayingsuch collaboration. Earlyinvolvement of procurementin new product developmentcan also yield up to 20percent improvements intime-to-market cycles.Procurement and suppliercollaboration in later productlifecycle stages make itpossible to continue to reduceproduction costs, facilitatepart re-use, maintaincompetitive advantage andextend the economicproduct lifecycle.

To address these issuesSiemens PLM Softwareoffers Teamcenter®

software for SRM – aportfolio of configurablestrategic sourcing solutionsthat leverages the impact ofTeamcenter, the world’smost comprehensive set ofproduct lifecycle management(PLM) capabilities. Siemens’impressive experience crossesa client base of 47,000customers including highlyrespected companies in theaerospace, defense, consumerpackage goods, automotive,health care, high tech andelectronics industries.

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Introducing Teamcenter for SRM

TheTeamcenter for SRM advantage

Teamcenter for SRM combines:

Robust e-sourcing productivity tools

Product data management integration

Real-time collaboration to provide aone-window portal to product and sourcingdata throughout the supply chain

Configurable reporting and visual analytictools that examine sourcing information todiscern trends and measure performance

Integrationto PDM

Robuste-sourcingtools

• Request for quote• Online negotiations• Spend analysis• Executive dashboards• Supplier registration portal• Sourcing analytics

•Teamcenter product data integration• Product change process integration with RFx

Enterprisecollaboration

One-window access toproduct and sourcing

data to all stakeholdersin the supply chain

•

Teamcenter for SRM is a fully-integrated web-based solution thattransforms the strategic sourcing process to enable completesharing of data internally and across the extended enterprise.This suite of leading-edge sourcing technologies shortens thedesign process allowing companies to release new productsquickly and cost-effectively.

Is this your strategic product sourcing vision?Teamcenter for SRM accelerates your company’s ability to adoptand deploy an efficient design to source process.

Teamcenter for SRM provides modular and highly scalable solutionsthat enable enterprises to address their highest business prioritiesfirst. Organizations can deployTeamcenter for SRM one step at atime, a phased approach to ensure a rapid return on investment.

Teamcenter for SRM is part of Teamcenter’s larger portfolio ofdigital lifecycle management solutions. Enterprises that own productresponsibility from concept to end-of-life disposition can leverageTeamcenter to manage their entire product lifecycle.

Teamcenter for SRM:Provides a direct and efficient connection between productdevelopment, procurement and suppliers

Merges the best of e-sourcing, supplier analytics and PLM capabilityin an integrated suite

Involves procurement in the post-launch engineering change processto ensure hard earned savings don’t vanish

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Teamcenter for SRM’s business value

Strategic sourcing for competitive advantageProduct sourcing is not a downstream, transaction-basedprocurement function. It’s a strategic activity that builds productdifferentiation by integrally linking sourcing to the productlifecycle process.

Making this transition requires a robust enterprise-caliber system.Yet many commercial stand-alone e-sourcing solutions operate inrelative isolation from other enterprise applications. Sourcingapplications from large ERP vendors focus on integration – butonly to downstream ERP and financial data.They largely ignorethe importance of product data.

Teamcenter for SRM unites teams in a single collaborativeenvironment. Product and sourcing data can be readily accessed,and product development change processes can be linked toaccelerate the sourcing process.

Delivering tangible valueTeamcenter for SRM transforms sourcing activities into a strategicsourcing machine that results in reduced direct and indirect costsultimately improving the top and bottom line performance.

Teamcenter for SRM helps:

• Increase sourcing productivity by allowing more time forstrategic pursuits and reducing the time spent on tacticalactivities

• Improve response time and accuracy by integrating productBOM and sourcing data while accelerating your ability toevaluate supplier responses and proposals

• Enable early procurement and supplier interaction through real-time collaboration and workflow both in new product design aswell as product changes, to help design cost out of productswhile increasing innovation

• Capture repeatable and measurable best practices for re-use

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Increased Innovation – incorporate supply chain knowledge toenhance new product development

Faster time-to-market – reduce new product development andintroduction (NPDI) time

Reduced product costs – collaborate with suppliers to design thecost out of products

Reduced sourcing administration – simplify the complexity ofmanaging an extended supply chain

Improved negotiating leverage – price transparency leads to lowermaterial and service prices

Reduced sourcing cycles – bid template library, robust analytics and bidoptimization tool accelerate the supplier response and evaluation process

Fewer sourcing-related engineering change notices (ECNs) – integrationwith PDM and early involvement in new product development andintroduction reduces the number of ECNs

Solution

Early involvementof procurement

and suppliers

RFxcycle reduction

Improvednegotiating

leverage

Standardizedsourcing

processes

Suppliercollaboration

Reducedsourcing cycles

SoftwareRFxInternet negotiationsSpend mangementSourcing communitySupplier managementSourcing analytics

ProgramManagementEarly design, engineering,procurement andsupplier collaborationSupplier self- registrationand contentTemplate library ofbest practices

Innovation,lower price products

Faster TTM• Customer satisfaction

• Longer market life

Reduced bidsand prices

Reduced scrapand rework

Reduced ECNcost/labor

Less maverickspending

Lessnoncompliance

Profitsfrom

increasedrevenues

Reduceddirect

(external)costs

Reducedtime-to-market

Access toproduct data

Processadvantage

Improved criticalsuccess factor

Businessvalue

$ and competitiveadvantage

The integration of Teamcenter with our robust sourcing suite increases collaboration with suppliers, improves negotiating leverage and reducestime-to-market. The results are simultaneous improvement to the top and bottom line while achieving a competitive advantage.

Teamcenter for SRM benefits:

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Designed for complex manufactured productsTeamcenter for SRM is aimed directly at organizations faced withescalating volume and complexity of sourcing activity typical in mostmanufacturing companies.

Each module of theTeamcenter for SRM suite addresses a needin the strategic sourcing process.

A “community workbench” directly addresses the need for arepository to capture sourcing information, provide documentworkflow and manage sourcing project teams that may begeographically dispersed.These web-based tools provide for thecapture and re-use of all the knowledge and information gainedduring a sourcing effort.The workbench tools enable users toconfigure their individual desktop to deliver data in a way thatallows them to see and analyze data like never before. In additionthe community workbench provides an enterprise-widecommunication tool used to inform and educate youremployees on supplier agreements.

Rapid sourcingTheTeamcenter for SRM RFx and Sourcing Survey applicationreplaces the traditionally repetitive, paper-based processes with aweb-based solution that streamlines and standardizes the datacollection and analysis process.Whether used to issue an RFI, RFP,RFQ or market survey,Teamcenter for SRM delivers the capabilityto obtain critical sourcing information, proposals and quotes frommultiple vendors. Teamcenter for SRM RFx can be used to captureand analyze supplier and pricing data required to enable productdevelopment and sourcing team collaboration.

Integrated with otherTeamcenter solutions,Teamcenter forSRM allows a bill of material (BOM) to populate the RFP, increasingsourcing accuracy while improving time-to-market cycles.Whencoupled with the optimization tool, RFx provides scenario modelingfor addressing advanced sourcing problems. Decision analysis canbe built around multiple supply constraints and supplier models.Procurement professionals and sourcing teams are freed fromadministrative details, giving them more time to focus onnegotiations and important strategic issues.

Negotiate onlineTheTeamcenter for SRM Internet Negotiations application enablesboth downward and upward auction events that let sourcing teamsbring the entire negotiation process online for virtually any good orservice.Online auctions can be a valuable component in the overallsourcing strategy by providing price transparency and analysiscapability that can easily be scaled to extend to global suppliers.The result: dramatically reduced sourcing cycle times, increasedsavings and more informed, equitable buying decisions.

Spend Management makes it easy to understand and optimize your direct productspend to reduce cost.

Robust e-sourcing: improving sourcing productivity

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Accurately track and control spendingTheTeamcenter for SRM Spend Management application enablesprocurement professionals to understand how their companytruly purchases by consolidating data from an enterprise’s existingsystems into common spend categories and appropriate corporatehierarchies.The solution provides highly reliable organization-widespend data which is a critical first step in effective analysis andsourcing.The result: improved spend tracking to identify sourcingopportunities, rapid execution of sourcing projects, increasednegotiating leverage and realization of negotiated savings.

Manage and evaluate suppliersTeamcenter for SRM Supplier Management enables identifying,engaging and evaluating your suppliers including supplier self-registration. Sourcing teams have access to supplier informationthat is critical in the decision making process. Suppliers provideinformation sourcing teams need during self-registration and recordmaintenance.The information ranges from contact and generalfinancial information to specific capacity/capability information.Supplier data may be searched along dimensions including a client-specific sourcing tree.The solution provides for supplier assessment,status setting and monitoring.

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Most sourcing solutions focus only on the administrative side ofprocurement.They are stuck in the traditional sourcing sandboxthat is designed to address the supplier’s margins but not go afterthe big win: reducing product cost.

Attack cost earlyThe most productive method of attacking product cost is todesign it out in the first place – through effective earlycollaboration between design and manufacturing disciplines.

However in a globally competitive environment product insightmay lie on the other side of the firewall – in supplier companiesstretched all around the world. Supplier collaboration with designand procurement is not an option with traditional sourcing solutions.

Engaging sourcing as part of the product teamTeamcenter for SRM helps break down the barriers betweendesign, engineer, procurement and suppliers.This allows sourcingprofessionals to play a critical role in understanding the trade-offssuch as supply stability, logistics, supplier performance, qualityperformance and component obsolescence.

One-window accessTeamcenter for SRM unites sourcing, engineering and procurementteams with a unified, one-window access to product and sourcinginformation. It captures all of the knowledge and informationgained during a sourcing effort to reduce negotiation time andimplement supplier contracts.

Based on the Microsoft platform and Microsoft SharePointservices,Teamcenter for SRM’s collaboration environment is easilyextended to every user desktop. Every entitled user in your supplychain can access and use a single source of product lifecycleknowledge from their desktop without engaging in special training.

Teamcenter for SRM’s real-time collaboration capabilities enableyour supply chain to quickly join and fully collaborate with yourdevelopment team in a real-time PLM community.

As a result your company reduces lost time and cost associatedwith incomplete communications and inaccessible information.

Teamcenter for SRM unites sourcing teams with engineering and the supply chainenabling early procurement involvement to design the cost out of products.

Real-time collaboration: enabling early supplier involvement

Supplier A

Supplier B

Real-time collaboration• Easy product information sharing• Real-time design review• Early supplier involvement

Engineersand designers

Manufacturing

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Real-time collaboration toolsTeamcenter for SRM Sourcing Community delivers unequaledaccess to collaboration tools including virtual conferencing, 3Dvisualization, CAD-based collaboration, document workflow,application sharing, personalized dashboards, scorecards and otherinteractive capabilities that allow engineering, procurement andsuppliers to confer, brainstorm, exchange information and testinnovative ideas all in real-time.

Dashboards and scorecards keep executives up-to-dateTeamcenter executive dashboards can be configured toallow sourcing managers and procurement executives tomonitor project status, sourcing event status, spend, contractcompliance and savings reports.Teamcenter for SRM providesconfigurable scorecards to enable leadership to discern trendsand evaluate sourcing program performance. From eliminatingmaverick spending to leveraging purchasing power, datafrom multiple sources can be transformed into actionableinformation. Teamcenter delivers the capability to integratesupplier performance and sourcing information, providing acomprehensive analysis of your supply chain. By leveragingwizard-like tools, users can quickly define and generate reportsin tabular and graphical formats. Reports can be predefinedand ad hoc.

Like all of the Teamcenter for SRM components, dashboards andscorecards can be deployed through a web browser to minimizestartup time and accelerate return on investment.

Integrated product and sourcing data:reduces the sourcing cycle and increases accuracy

Changes: a fact of lifeIf you’re dealing with direct material sourcing in an integratedmanufacturing industry, managing change and your ability torespond is a the center of your professional activity.Teamcenter-driven PLM solutions manage much of the intellectual capital thatdefines today’s highly complex new product development andproduct change process.Teamcenter is uniquely positioned tolink existing product and engineering data in today’s globalsourcing process.

In many companies, dealing with sourcing-related changes cantake up to 80 percent or more of a sourcing professional’s time.The number of changes is measured in tens of thousands.The costof preparing and delivering bid packages and technicaldata is staggering.The cost of suppliers receiving data late andbuilding products with incomplete or inaccurate information orspecifications is even greater.

From months to daysIn these environments Teamcenter for SRM can compress thecycle time to execute sourcing-related product change noticesfrom months to weeks – or even days. Because it also attackschanges at the source,Teamcenter for SRM can also enableorganizations to reduce the number of changes as well.

Deep knowledge of product dataThe issue of attacking product change notices requires access toproduct data. Most e-sourcing solutions can’t deliver you to theheart of the sourcing challenge – product data stored in yourPDM system.

Product data – materials, geometry, manufacturing process, tooling,tolerances, quality – and its structure are too complex for mostsourcing applications to store much less manage.

Reconfiguring product and engineering data into a procurement-centric format requires deep domain knowledge of product data –available only from an e-sourcing vendor that specializes indelivering product data to the enterprise.

Teamcenter for SRM emphasizes delivering product data to threecritical elements of the change process: change impact analysis,RFQ preparation and RFQ response.

Understand the impact of changesWhen changes do happen, their effect ripples – rapidly. It impactsinventory, new products under development, products that use theparts to be changed and parts that mate with the affected part.

Evaluating the effectivity and impact of a change consumes asignificant chunk of the change cycle.

With easy access to detailed product data in the PDM system. thesourcing team gains a clear understanding of where a part is usedand the aggregate effects of a change – before deciding how andwhether to implement a change.

RFQ preparationTeamcenter for SRM helps break down the silo barriers betweenengineering and sourcing by tying the engineering changemanagement process to the sourcing process.

Through this integration, product information is directly deliveredto sourcing teams as part of the bill of material, for utilization inbid package preparation.

Sourcing professionals prepare bid packages using commoditytemplates, which are populated with product data that can beaccessed directly from the PDM system.

Teamcenter for SRM provides one-window access to sourcing and productinformation to increase RFx response time and accuracy.

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Teamcenter for SRM provides procurement professionalsrapid access to product data, incorporating BOMs, mathmodels and relevant specs to accelerate new productdevelopment or capture additional value duringnegotiating activity.

RFQ responseApproved bid packages are posted in a secure environmentfor vendor access. By providing the data in a consistent format,evaluation time is reduced. Bid packages and responses arearchived to capture best practices and for future re-use.

Sourcing professionals can monitor bid activity throughoutthe sourcing process. If suppliers have questions, sourcingprofessionals can easily post answers, updates and correctionswithout delaying the process.

A comprehensive solutionTeamcenter for SRM helps you fulfill this strategic vision by enabling yourproduct sourcing team to:

Track spending across programs and regions to target sourcing opportunities,analyze spending and leverage purchasing power

Plan sourcing strategies based on access to sourcing history andsupplier performance

Assess the impact of changes and sourcing requests on existing parts

Develop and manage complete information packages and request forquote, bid, proposal using commodity-based templates

Route product sourcing documents for timely evaluation, feedbackand electronic approval

Exchange detailed product data, BOMs,RFxs and responses with suppliers

Post clarifications to questions and provide a consistent format for replyingto sourcing requests

Evaluate status of sourcing events and intervene as necessary

Analyze and compare supplier responses including a bid optimization enginefor complex constraint analysis

Negotiate online to increase price transparency and reduce sourcing cycles

Collaborate between engineering, sourcing and suppliers to evaluate newdesigns and avoid cost and manufacturing-driven changes

Inform management of critical program status via executive dashboards

Monitor contract compliance and off-contract “maverick” spending

Register new suppliers to evaluate capability and include in future designand sourcing events

• Cost parameters• Specifications• CAD parts and drawings• Requirements

RFx

Supplier A

Supplier C

Engineering

Executives

Sourcing

Supplier B

Supplier A

Supplier C

Bid package

© 2007. Siemens Product Lifecycle Management Software Inc. All rights reserved. Siemens and the Siemens logo are registered trademarks of Siemens AG. Teamcenter, NX, Solid Edge,Tecnomatix,Parasolid, Femap, I-deas, JT, UGSVelocity Series, Geolus and the Signs of Innovation trade dress are trademarks or registered trademarks of Siemens Product Lifecycle Management Software Inc.or its subsidiaries in the United States and in other countries.All other logos, trademarks, registered trademarks or service marks used herein are the property of their respective holders.

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About Siemens PLM SoftwareSiemens PLM Software, a division ofSiemens Automation and Drives (A&D),is a leading global provider of productlifecycle management (PLM) softwareand services with 4.3 million licensedseats and 47,000 customers worldwide.Headquartered in Plano,Texas, SiemensPLM Software’s open enterprise solutionsenable a world where organizations andtheir partners collaborate through GlobalInnovation Networks to deliver world-classproducts and services. For more informationon Siemens PLM Software products andservices, visit www.siemens.com/plm.

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