Real-time supply chain visibility and automation increase supply stability

Sourcing & Procurement

Changing customer expectations have increased the pace at which supply chains need to respond to demand, making procurement harder than ever. Siloed systems and the high number of transactions make manual tracking and reconciliation ineffective, yet most companies still rely on exchanging spreadsheets with partners, such as suppliers, sub-contractors, co-packers and logistics providers. Limited visibility to supply has made expediting and firefighting part of the daily routine, impacting productivity and eroding margins. Lack of timely information exchange between trading partners undermines confidence, creates uncertainty and leads to unnecessary inventory investments.  As firms add new supply tiers or outsource manufacturing, the additional network complexity compounds the problem. 

Sourcing & Procurement

In this increasingly challenging environment, how can sourcing and procurement become more strategic – and drive additional growth and margin?  It starts by enabling a connected supply chain. E2open’s Sourcing & Procurement solutions provide supply chain visibility, control, and collaborative capabilities across all buy-side processes, allowing companies to respond to shifting market requirements and align operations across global supply networks. Internal systems get seamlessly connected to all tiers of supply through the E2open Network for collaboration based on a single version of truth for all parties. Key supply chain processes are streamlined and automated to eliminate spreadsheets and proactively generate alerts for transactions that require attention.

Personnel can focus limited resources on resolving important issues that impact sales and have more time to work on more value-added activities. Most importantly, end-to-end supply chain visibility and the timely exchange of information develop trust and confidence between parties, creating a more stable and efficient supply network with fewer disruptions.

"Challenge" Label
Challenges
"Solution" Label
Benefits
Challenge
High expedite costs from lack of visibility to changing demand
Solution
Stable supply chain with fewer expedites and disruptions
Challenge
Lost sales opportunities from slow identification and resolution of issues
Solution
Increased customer service with fewer stock-outs and improved deliveries (on-time, in-full)
Challenge
Excess inventory from poor visibility and lack of timely information
Solution
Lower inventory through real-time visibility and confidence in supplier response
By partnering with E2open to improve our supplier collaboration and network visibility via the cloud, we’ve taken our demand fulfillment approach to the next level thanks to the availability of high quality, real-time information.
Vice President
Global Beauty Products Company

Streamline sourcing and procurement processes to make them less manual, error-prone and resource intensive. E2open’s Procure to Pay solution enables digital supplier collaboration, providing visibility and timely exchange of information across all tiers of supply. Purchase order are automatically correlated and reconciled with shipments, receipts and invoices, without having to switch between systems or portals. Exceptions to business rules are proactively flagged, with buyers and suppliers alerted in real-time to collaborate on a resolution. Shared visibility and confidence in the data allows buyers to make better decisions throughout the procure-to-pay cycle; and for suppliers to support them more effectively.

Reduce procurement lead times and materials exceptions by aligning supply in advance of real demand. E2open’s Forecast Collaboration solution facilitates the material forecast and commit process between the buyer and all suppliers, allowing them to collaborate on predicted quantities and upsides until an agreement is reached. This speeds up responses when suppliers and contract manufacturers receive actual orders and makes it more likely orders are filled in full without expediting. The result is shorter lead times, higher fill rates and fewer premium freight charges. E2open's Demand Sensing and Supply Planning & Response solutions maximize the value received from Forecast Collaboration by creating agile supply chains that automatically sense changes in demand, immediately plan a supply response, and confirm the feasibility of executing on that plan with suppliers and contract manufacturers.

Increase supply chain agility for build-to-order and configure-to-order businesses and better respond to demand fluctuations. E2open’s Capacity Collaboration solution enables collaboration of production capacity forecasts and commitments. Contract manufacturers and suppliers can promptly respond to customer demand, even when specific configurations may be difficult to forecast.

This solution complements capable-to-promise planning enabled by E2open's Supply Planning & Response and Order Promising & Allocation solutions to create effective postponement strategies that meet customer demands while minimizing investments in inventory.

Gain the benefits of volume discounts for goods manufactured at independent subsidiaries, sub-contractors and co-packers. E2open’s Buy-Sell Order Management solution enables three-way flows between suppliers, the central procurement organization and production entities to control and aggregate material spend. This lets companies realize volume discounts on raw material for all their products regardless of which organization performs the actual manufacturing, lowering cost of goods sold and increasing margins.

Reduce overpayment for outsourced manufacturing services by eliminating manual reconciliation and invoice processing errors. E2open’s Contract Compliance solution offers digital validation and reconciliation for services performed by contract manufacturers, comparing charges for services with the formula specifications or price schedules defined in service contracts. This solution leverages detailed shop floor data from E2open's Manufacturing Visibility solution to automatically generate invoices, typically saving companies weeks of manual effort, and the cost of overpayment.

Enable the end-to-end supplier collaboration process in a single integrated platform. E2open’s eInvoicing solution enables a completely paperless workflow that fulfills tax and legal auditing requirements. Electronic invoices are fully validated, electronically signed and archived, and compliant in over 50 countries based on country-specific legal and financial standards. This solution works with E2open's Procure to Pay solution so that buyers and suppliers conveniently perform all activities on a single platform.

Drive down procurement costs by collaborating with suppliers and contract manufacturers on costs of raw materials and sub-assemblies. E2open’s BOM & Cost Management solution provides visibility to the outsourced parts of the BOM, and all the different cost drivers. The solution enables comparison of different versions of the BOM (e.g., as-designed vs. as-built), as well as comparison of different cost scenarios (e.g. rebates from alternate suppliers resulting from two different volume-split ratios). The outcome is savings of direct materials procurement costs.

E2open’s Sourcing & Procurement solutions streamline and automate supply chain collaboration. Leveraging E2net and Harmony, these solutions help reduce bullwhip effect when used with E2open’s demand sensing and fulfillment offerings, and enable closed-loop decision-making across all planning horizons, including execution, tactical and strategic, when used with E2open’s demand planning and supply planning solutions.