Value Chain Management
In environments where the majority of manufacturing and assembly processes are outsourced, companies that proactively manage key parts of their extended supply network have a competitive advantage.
Our work with large product companies has highlighted the significant value that can be realized by taking a more active role to better manage activities throughout the extended supply network. 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. There has not been a solution that supports these strategies by providing OEM’s with a programmatic approach, collaborative framework and the tools necessary to actively manage critical decision and activities that directly affect the cost and delivery of critical outsourced production; until now.
Network Resource Management™ (NRM) provides the ability for companies to programmatically reconnect their finished goods demand to the parts, materials, capacities and operations that represent significant risks and cost driver. With the ability to systematically gather information and model these relationships, companies can now track and manage activities to unlock the value otherwise trapped throughout the extended supply chain.
Built for purpose.
Network Resource Management (NRM) is built on Newview’s Supply Network (SN) platform, providing a secure means of multi-enterprise collaboration between stakeholders. Network participants are able to login to the NRM and are provided with a relevant view to their common business portfolio to access, analyze, request information, or respond to inquiries based upon the participant’s organization and role.
NRM captures and assembles the relationships between the parts, materials, transformation and assembly processes across the supply network; “extending” the view and reach well beyond traditional enterprise boundaries.
Network Visibility Illustration
Conventional business processes and applications extend only to those directly involved in direct financial transactions – customers and first tier suppliers. Network Resource Management allows companies to extend their reach beyond direct suppliers into the sub-tier.
Extending a company’s reach comes with its own set of challenges, and that this type of effort requires a high-level of corporate “dexterity” led by experience. Extending an organization’s Bill of Materials to an all-encompassing ‘Bill of Resources’ creates some daunting math. For instance, an automobile has about 15,000 discrete parts, but when these parts are extended to input parts and underlying materials, this number grows to over 80,000. Add to that the number of platforms auto manufacturers balance (up to 30), and the number of model/option variations per platform (up to 100), and you can see how the bill of resources can quickly become unwieldy.
Network Resource Management contains a number of features that allow this process to scale:
- The ability to categorize parts and materials, and to compare and analyze them based on an extensive set of attributes, as defined by the user (details below)
- The means to interact directly with suppliers to request information in a logical sequence
- The ability to integrate data through a wide variety of channels
- The ability to navigate, search and analyze, and to define a set of information to extract to a spreadsheet or other analytic application for further refinement
Key Features Descriptions
Network Navigation: Effectively managing the extensive amount of information available in the bill of resources requires getting your arms around an ability to navigate the volumes of data that is at the same time powerful and intuitive. NRM provides the capability to “navigate” through a complex analysis by decomposing it into a number of discrete steps.
Managing Parts and Material by Attributes: One of the challenges inherent in coordinating activities through the extended value chain is that oftentimes part numbers are different across suppliers for the same part.
Additionally, some part and material categories are defined not by part numbers, but by a set of attributes specific to the category. RM allows users to define and capture important attributes describing a particular part category, drawing from an extensive library of physical attributes. These attributes can be defined as required or optional, and can be used as the basis for processes, analysis, and reporting.
Custom Analysis and Views: Users can navigate through parts, materials, and suppliers, identify a group for further comparison, and then define analytic views that allow them to quickly analyze, compare,and monitor important factors such as pricing, purchasing volumes, and any other attributes available. These “views” can be saved, and shared with other users, and invoked against various groups of data. Analyses can be constructed across categories of information, with RM intelligently presenting the user with the attributes that are common across categories and therefore available for use.
Demand Planning: Instead of allowing the participants to “cascade” requirements through a series of serial demand calculations and communications tier-by-tier, OEM’s that model the extended supply chain can determine providing the demand signals across the tiers, “orchestrating” planning activities throughout the tiers, can eliminate the guesswork and delayed communication that currently occurs in the extended supply chain, resulting in supply chains that are more responsive while requiring less working capital.
NRM takes the finished goods schedule as input, and, using the Bill of Resource, calculates the requirements schedule (or demand plan) for the parts, materials, and processes that are specified by the Bill of Resource. The results can be parsed and communicated to suppliers throughout the tiers as a means of “broadcasting” requirements.