Outsourcing is a key strategy for today’s industry-leading companies—helping to drive down costs, reduce capital assets, and get products to market more efficiently than the competition. At the same time, outsourcing also means increased complexity and less visibility and control over the manufacturing process, as the key planning and execution data in a multi-tier supply chain resides outside the four walls of the enterprise. Multi-Tier Management is a suite of products specifically designed to enable you to capitalize on the many benefits of outsourcing, while reducing supply chain complexity and mitigating risk.
To leverage the cost savings and efficiencies available through outsourcing, companies need to be able to maintain control over remote operations—both to monitor purchasing costs and to mitigate potential supply chain disruptions. E2open simplifies the equation by enabling end-to-end visibility and control across multiple tiers, as well as real-time collaboration and data exchange with 100 percent of trading partners, regardless of technical sophistication. E2open’s out-of-the-box solution is based on industry best practices, and supports the following key multi-tier supply chain processes:
In traditional outsourced manufacturing processes, tier 1 suppliers and contract manufacturers typically buy directly from their tier-2 component suppliers, often negotiating lower-than-reported component prices and taking advantage of volume rebates. For the OEM, this can mean both lost revenues and mistrustful supplier relations. Multi-Tier Management solves this challenge by enabling an automated, efficient buy-sell process. Specifically, OEMs are able to buy strategic components directly from component suppliers (at lower prices), and then sell them to contract manufacturers—keeping any profits for themselves. This not only helps to control procurement costs, but also enables OEMs to manage allocations of critical components to tier 1 suppliers and contract manufacturers in case of supply constraints. On average, E2open customers leveraging E2open’s buy-sell process experienced a 3 to 7 percent reduction in purchasing costs.
Today’s manufacturing environment demands much more than standard connectivity to major tier 1 suppliers. It is more crucial than ever to connect and to collaborate with 100 percent of your trading partners across all tiers of the supply chain—particularly if cutting costs while improving service levels is the end goal. Multi-Tier Management provides you the tools and functionality you need to get there—delivered in the cloud via a pay-as-you-go model.
Bottom-line benefits include: