Coordinated Network Procurement « Newview

By: Newview  09-12-2011
Keywords: supply chain, Financial Management, Procurement

Coordinated Network Procurement « Newview

Multi-Enterprise / Multi-Tier Transaction Execution.

Provides capabilities for companies to consolidate spend, and leverage purchasing authority across the extended value chain.

Product Overview

Companies that outsource manufacturing processes can lose the leverage of purchasing downstream parts and materials, as contract manufacturers assume the responsibilities for sourcing these parts and materials. Newview Technologies supports complex procurement models that enable companies to purchase materials on behalf of suppliers, and then sell those materials back to suppliers.

Industry Programs Supported:

  • Automotive/Industrial Re-Sale or Re-Bill Programs
  • Electronics and discrete parts oriented Buy/Sell Programs
  • Provides secure, role and company based user roles, and pre-configured inter-company workflow to manage complex procurement programs.
  • Supports highly collaborative interaction, while ensuring security with respect to key pieces of information, in particular masking prices from relevant parties
  • Pre-configured material templates that allow the Bill of Resources to extend to the raw material (highly attributed) level Automated financial management of AP/AR, Credit/Debit and Set-off feeds.
  • Support for 3rd party administration in conjunction with BPO partners Can be delivered in a variety of hosting models including on-site, as part of a managed services or hosted by Newview
  • Highly secure.

Example of a Multi-Tier / Multi-Enterprise Procurement Program: Sourcing Model, ‘Buy-Sell’ (also referred to as ‘Resale’)

Benefits Summary:

  • Reduce Purchased Part and Material Costs through leverage and price masking.
  • Companies that have implemented this program see a part/material cost savings of four to 14%.
  • Reduce contract manufacturing, assembly, processing charges based on getting better clarity on input part and material costs.
  • Enable suppliers to focus on true VA/VE activities rather than managing raw material input costs.
  • Reduce administrative overhead and allow your most important resource, your people, focus on strategic initiatives that strengthen your competitive advantage.

Managing credit risk and insulating the supply chain from credit challenges

In today’s environment, extended supply chains are challenged by the financial health of participants.OEM’s that are financially healthy themselves may face the risk of production shutdowns, as part suppliers stop shipping to contract manufacturers with poor credit. In fact, our analysis of the credit profile of the participants in value chains in a number of industries indicate that the mid-tiers, and not the primary part supplier or the OEM’s, who are in the worst credit position.

Keywords: Financial Management, Procurement, Raw Material, supply chain

Other products and services from Newview


Specification Management « Newview

Specification Management provides the framework and capabilities for modeling the ‘Bill of Resource’ to develop a sufficient understanding of parts, materials, sources and capacities, supporting cost reduction initiatives through reducing material complexity and inventory held throughout the extended value chain.


Products « Newview

Our Network Business Process Architecture™ and Multi-Enterprise Framework were built specifically to address the limitations of existing business architectures and organizational structures that were neither designed nor equipped to operate across enterprises and through n-tiers of supply.


Supply Network Platform « Newview

SN is a technical platform that delivers a highly configurable, secure, and scale-able multi-enterprise infrastructure and business process framework allowing internal and external stakeholders to collaborate and transact effectively across the boundaries of enterprises.


Consolidation of Spend « Newview

Newview’s Spend Consolidation Solution provides the framework and capabilities that allow manufacturing companies to re-capture and model the part-to-material-to-finished good relationships and build consolidated views of aggregate spend for key categories. Understanding aggregate spend for critical part and material inputs is essential to managing supply risk and controlling the cost of finished goods.


Solutions « Newview

Benefits include the ability to understand total value chain material needs, capabilities to broadcast coordinating schedules for sub-tier suppliers, and providing the tools and techniques allowing clients to influence and control material / part source decisions, and manage cost exposure to part and material price volatility.


Network Resource Management « Newview

While at the same time, making the commitment to this strategy becomes exponentially more difficult as OEM’s-Brand Owners further increase the volumes of outsourced production processes, widening the gaps of information and visibility to critical activities throughout their value chain.