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Detailed Challenges
The business process for collaborating internally and with
suppliers prior to implementing VendorServer® needed
improvement. A seamless process to work with engineering,
buyers and suppliers to shrink the lengthy and cumbersome
supply chain cycle was imperative. The need to communicate
with design, engineering, sales and suppliers to quickly
turn opportunities into proposals, and proposals into orders
and executable plans, was critical. The opportunity for
miscommunication throughout the entire supply chain was
significant with countless departments and external
suppliers involved in the process and extremely complex
purchasing activities.
The lengthy and involved designing, buying and building
process is further complicated by time based milestones and
the proper timing of materials that can extend beyond a
year. The previous business process had many manual and
disconnected automated purchasing systems limiting the
ability to effectively manage the supply chain process.
There were no provisions for supplier interaction beyond
telephone and fax methods.
Without adopting a more strategic approach, the client was
faced with higher costs, less accuracy, long lead times,
higher carrying costs and lower customer satisfaction. The
client created a 360-degree view of requirements for taking
its supply chain and supplier collaboration to a new level
to enhance business operations in an area with substantial
payback.
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Solution Details
The client implemented Visibility VendorServer, which
provides complete buy side supply chain management in a
real-time Web environment. Quotation requests, RFQs,
purchase order entry and management, supplier quote
assessment, comprehensive workflow, and document management
are some of the business enhancements offered.
Managing the Requisition to RFQ Process - Using the
browser interface, users verified as secure can create and
process requisitions based on MRP demand, BOM, MRO or new
part quotations. Users can attach documents such as
specifications, drawings, supplier lists and comments for
collaboration with the buyer and/or supplier. Business rule
based workflow facilitates approval, routing and assignment
of purchasing activities. Buyers can construct RFQs on-line
from user requisitions, new part numbers and previous POs or
RFQ line items and attach additional documentation so that
suppliers clearly understand RFQ requirements and are able
to respond quickly and with more accuracy.
Supplier Communications, Analysis and Selection with Event
Driven Workflow - Buyers choose from existing candidate
suppliers or new potential suppliers and electronically
transmit detailed RFQs and supporting documents. Suppliers
can receive RFQs via event driven workflow providing
single-click access to secure an RFQ reply form while
allowing direct entry of supplier RFQ responses.
VendorServer notifies the buyer of all RFQ responses and can
aggregate, rank and compare competing supplier quotations
and provide the buyer with direct online access to existing
supplier pricing agreements, past quotes and POs for
comparison. By providing for the organized solicitation,
analysis, ranking, selection and directed conversion of
supplier replies to competitive bids, VendorServer
streamlines and significantly reduces time and expense with
greater contract pricing compliance and increased number of
qualified quotes.
PO Creation and Management - Once a supplier has been
selected, the buyer builds POs in real-time directly from
supplier quotes, requisitions, parts listings or prior POs.
VendorServer facilitates managing blanket POs and rapidly
and directly communicates PO amendments. Transaction history
and an audit trail are captured for future use.
RFQ and Order Status Inquiry - Subject to secure
access, authenticated users such as buyers, planners,
materials managers and selected suppliers are able to access
information related to material requirements, purchase
requisitions, RFQs, POs, quote activity and history, and
material demand and shortages. Workflow events automatically
deliver order status and requests for action to the
appropriate personnel assuring more efficient and timely
response. This improves the quality and flow of information
and significantly reduces the time spent checking on the
order status.
Collaboration – Workflow and Document Management -
Built-in messaging based workflow capability facilitates
direct communication by allowing buyers, planners and
suppliers to be notified of events that require their
attention which improves material management efficiency and
eases decision-making. Integrated document management
facilitates central focus, provides access to all documents
associated with purchased items and an audit trail. Managed
documents may include virtually all Windows® application
file types.
Supplier Product Part Number Cross-Reference - The
client can utilize extended document management capabilities
to enhance part number cross-reference by supplier with both
internal documents defining part numbers, as well as
supplier provided product documentation. Documents may
include pictures, drawings and other multimedia information
that cannot normally be stored for retrieval within the ERP
application.
By taking advantage of the dramatic strategic and tactical
business advantages that VendorServer offers, significant
costs have been reduced and immense improvements have been
achieved through improved supplier collaboration.
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