Those Who Depend On Direct Material Depend On Allocation.
To simply consider sourcing an act of consolidating spend and driving cost savings is nearsighted.
For many, the function is superseded by the relationship with a particular supplier, such as in joint design collaboration – and there is no question that there are many influencers to the process.
To optimize the part lifecycle for supply chain, the sourcing function has to be flexible, capable, and connected to the entire lifecycle.
Success is defined by how effectively one can execute on these, and the stakes are too high to make a mistake.
ASTRAS helps you govern the entire sourcing process, reduce processing error, and facilitate optimal decisions.
Unlike blanket NDAs with indirect suppliers, Tier-1 suppliers are privy to design concepts and projects early in the cycle. Each engagement may come with specific non-disclosure requirements, leading to a large number of NDAs, by supplier and by event, to manage.
ASTRAS helps our customers overcome the NDA challenges by:
Abraham Maslow suggested that “it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.”
An RFP for office supplies is VERY DIFFERENT than an RFQ accessing material cost specifications (e.g., material costs, product weight, scrap, sold scrap, packaging, freight, etc.) and manufacturing costs (process steps, machine hour rate, shifts, manufacturing time, max pieces, tooling costs, construction time, etc.). Yet, many try to ‘force fit’ direct procurement into solutions made for indirect procurement. Others too often buck the IT mandate and try to manage their most strategic spend through emails and spreadsheets – opening themselves up to errors and risk.
Use right tool for the job.
ASTRAS helps our customers overcome the eRFx challenges by:
Naturally, auction participants assume a commitment from the buyer if they win. But, are all participants comparable? What if, after the auction, the buyer has to adjust pricing to compensate for other factors?
Audit your suppliers, as needed, pre-auction/tender to ensure you are taking all considerations into account.
ASTRAS helps our customers ensure “apples-to-apples” comparison by:
Surveys show that leveraging a reverse auction service will yield 10% higher savings, on average, than traditional negotiation tactics. These savings are quantifiable and undeniable, yet some still find institutionalizing the use of auctions a struggle. Why?
In part/material auctions, it isn’t simply a final price. It’s game theory; It’s a blend of considerations and price levers; and, It’s about ensuring an optimal outcome for both your organization AND the supplier.
ASTRAS helps our customers overcome the daunting Auction challenge by: