Optimize Manufacturing Procurement in a Risky and Competitive World
COMPREHENSIVE PROCUREMENT SOLUTIONS TO MEET YOUR UNIQUE CHALLENGES
There are myriad risks to manufacturing’s critical supply chain: political and economic volatility, regulatory changes, and environmental factors are all potential disruptors. At the same time, competitive forces and consumer demands are straining prices and margins. Add to that the complexities of managing suppliers, contracts, spending and performance all together, and manufacturers have a huge challenge on their hands.
How does a manufacturer mitigate risk, create value and efficiency through sourcing, leverage collaborative supplier relationships, maximize their visibility into supplier performance data, and manage supplier contracts? Through selecting JAGGAER’s industry specific manufacturing spend solutions suite.
JAGGAER offers a powerful set of tools to meet the procurement needs of manufacturers of all sizes, in every industry. The multi-faceted suite helps companies smooth out the challenges related to transportation and logistics; direct and indirect materials; packaging and corporate services. Our suite is powerful enough to handle the most complex and variable events – while also being intuitive and easy to use. JAGGAER does all of that by combining analytics and data visualization.
JAGGAER’s proven, state-of-the-art solutions have been developed to meet the unique needs of manufacturers, and are trusted by the world’s leading companies.
A decentralized approach to its European transportation sourcing was causing inefficiencies and a less competitive environment for procurement group suppliers of a multi-billion-dollar conglomerate.
The decentralized approach seemed like a necessary evil, with highly complex spends involving a large volume of shipping between multiple locations. The situation was further complicated by the varying transport pricing models in each country.
The Company turned to the JAGGAER Advanced Sourcing Optimizer (ASO) to simplify its transportation sourcing. As a result, the Company realized 17% increased efficiency and a more competitive environment for suppliers. In addition, the Company now has the ability to receive bids that include supplier strengths and innovations, more easily manage supplier relationships (Total Supplier Manager) and monitor performance against contracts (Total Contract Manager), allowing them make more informed sourcing decisions. The Company also looks to JAGGAER’s Best Practices Center (BPC) to help them for strategic advice and consulting on all facets of the procurement process.
“We’ve had a deep, strategic relationship and we’ve realized approximately $1.5 billion in savings using JAGGAER.”
Procter and Gamble
“Normalized 75,000+ suppliers, and classified $3 billion of spend (>98%) within 12 weeks. Dramatically reduced time required to produce reports and analysis.”
Vulcan Materials Company
What Sets Us Apart
JAGGAER’s unique Manufacturing Suite was designed with the input of over 100 mid-size to global manufacturing companies. JAGGAER’s industry-specific Manufacturing Suite helps companies optimize their supply chain operations and delivers the tools for manufacturers to mitigate risk, increase efficiency and production, and navigate the challenges faced in an increasingly volatile and competitive market. When it comes to software selection, vertical matters.
JAGGAER’s Advanced Sourcing Optimizer (ASO) is the most advanced sourcing optimization tool in the world, period.
Using ASO, a manufacturer will be able to:
- Utilize Multi-stage optimization (MSO) to gain unparalleled visibility into the entire supply chain through the application of blockchain logic theorem;
- Engage carriers in a collaborative bidding process that will lead to an optimized network, secured capacity, and reduced costs;
- Navigate seasonal peaks and valleys in demand and ensure they are working with the best, most qualified suppliers available by taking into account the most relevant price and non-price factors while warding off risk; and
Manage costs in volatile and competitive markets; through Expressive Bidding, solicit and evaluate creative proposals that include factors like alternative materials as well as conditional and packaged offers, yielding even more savings.
Total Supplier Manager (TSM) simplifies supplier management by providing a single access point to manage vendor relationships with complete visibility into supplier performance and risk so that organizations can maintain an all-star roster of vendors.
With TSM, a manufacturer can:
- Ensure current and potential suppliers have the qualifications and resources to meet manufacturer expectations through Dynamic Qualification & risk compliance;
- Manage diverse vendor programs down to second-tier suppliers by allowing prime suppliers to self-report on their spending; and
- Gain increased visibility into vendor performance metrics, allowing them to manage supplier relationships strategically.
For manufacturers, avoiding disruptions are essential. With such high volumes of product being made every day, even a second of delay eats into profit margins that must be protected at all costs. Total Contract Manager (TCM) from JAGGAER assures that contracts are up to date, being fulfilled, and easily reviewable.
By using TCM, companies are able to:
- Streamline contract management with improved collaboration from authoring to approval; all contracts are stored in a single secure central repository to help with compliance and accessibility;
- Reduce authoring times thanks to dynamic contract generation and a wealth of templates for full contracts, clauses, and individual obligations; and
- Eliminate risk of errors and missed obligations with a single point reference for all contract terms and conditions—all updating in real-time.
Spend Radar provides data-driven insights into the entire procurement process. Easy access to valuable information allows manufacturers to make strategic decisions that save money and increase efficiency.
Spend Radar allows manufacturers to:
- Gather, integrate, and analyze data from any source fragmented across their organization for unmatched analytic depth;
- Gain visibility into spend; visualize its patterns in an intuitive report to see where it’s going and identify cost reduction opportunities; and
- Improve budget forecasting and purchasing efficiency through granular pricing and trends analysis.
The Solution Suite
JAGGAER’s Manufacturing Suite enabled the manufacturer to realize greater total cost savings, more efficiency, more spend against contract, more spend against the sourced suppliers, less risk and greater productivity. The results they saw will impact their bottom lines and make them more competitive.
- $1.4B reduction in total cost savings
- 12% reduction in overall costs from increased competition
- 90% suppliers vetted, on-boarded, and monitored for performance
- 15% reduction in unreliable suppliers
- 95% compliant contracts in place
- 17% improvement in procurement cycle times
- 220% gain in efficient processes
Hologic Creates Strategic Advantage with Procurement
Direct Materials & Commodity Sourcing Strategies - Improving Results with Advanced Sourcing
2018 Gartner Magic Quadrant for Strategic Sourcing Application Suites
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