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8/13/2019 Tc8-Overview SRM
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Page 1
2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Teamcenter 8
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Supplier Relationship Management (SRM)
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Supplier RelationshipManagement
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Page 4
2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Teamwork is Difficult in Todays
Purchasing Environment
Purchase Order
10 + Access Databases
Supplier Signs LOI
SupplierA
Rationale
NP
V Analytics
Awa
rd
Recomme
ndation
Virtual Part File
Are we
there yet?
Buyer Chases Approvals
SupplierA
Buyer Emails RFQ
Supplier
B
SupplierC
Information
Buyer createsLetter of intent
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Page 5
2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated PLM/SRMFrictionless flow of information between Engineering,
Procurement and Suppliers
Improves Profitability
Provides Access to Information
Delivers a Competitive Advantage
According to the Aberdeen AdvancedSourcing Benchmark report respondentsbelieve product lifecycle sourcing drivesinnovation although only 35% reportSourcing involved in the product designphase
Source: McKinsey: Inventing the 21stCentury Purchasing Organization
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Teamcenter for SRM
Synchronization withProduct Development
Integrated Sourcing Process
Integrated Supplier
Management
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Synchronization with Product DevelopmentEngineering and purchasing data is fragmented & disconnected
BOMs
Programs
Buy to Specs
RFQs
SupplierCapabilities
SupplierScorecards
AwardDecisions
SpendData
QualityData
DeliveryData
Purchase OrderInformation
Component
Libraries
AnalysisDesigns
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Synchronization with Product DevelopmentSRM synchronizes engineering and purchasing data
Buy toSpecs
AwardDecisions
Spend Data(R2P systems)
Delivery andQuality Data
P.O. Data(for ERPsystems)
Engineering
Purchasing
Executives want theirsourcing teams to create
value through their
relationships with key
suppliers. Unfortunately the
same study found that
sourcing teams spend 70% oftheir time on tactical activities
with little value added to
those strategic relationships
A. T. Kearney, Assessment of
Excellence in Procurement
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Eliminates Buyers Chasing Data
Consistent Information
Synchronization with Product DevelopmentBenefits
Automates The Change Process
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Synchronization with Product DevelopmentEliminates Buyers Chasing Data
Spend Management consolidates data into a common reportingstructure for accurate, rapid and repeatable analysis
Demo
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Synchronization with Product DevelopmentConsistent information
Addresses complexity of datamanagement
Improves co-ordination amongbuyers, engineers and suppliers
Closes loop for bill of materialcost management
Demo
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Teamcenter for SRM
Synchronization with Product
Development
Integrated Sourcing
Process
Integrated Supplier
Management
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Best In Class
Purchasing Involvement
Traditional PurchasingInvolvement
Time
Abilityto
controlcosts
Product Development Timeline
Supports early involvement that drives cost savings
Source: McKinsey
Integrated Sourcing Process
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Sourcing ProcessThe Value
Reduce Cost of Goods Sold Increase accuracy of communication with
suppliers
Introduce low cost suppliers Re-use suppliers & materials to increase
volume leverage
Reduce Inventory and Spares Cost Reduce inventory costs through reduced
material costs
Reduce inventory requirement through re-use.Improve Purchasing Productivity Reduce manual effort to gather critical data
to make sourcing decisions
Reduce administration costs of suppliers &
materials
ResultsTC
SRMCurrent
Incom e Statement
Balance Sheet
Key Rat ios
s Revenue $1,000 $1,000
s Cost of Goods Sold $600 ($30) $570
s Gross Profit $400 $430
s Cash $91 $12 $103
s Inventory $140 ($12) $128
s Gross Profit Margin (BT) 40% 43%
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Supports Multiple Business Models
Cost Breakdown Capability
Integrated Sourcing ProcessBenefits
Automated RFx Creation
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Page 17 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Sourcing ProcessSupports centralized or decentralized business model
Package and assign by location
Reduces language and culturalchallenges
Delivers consistent, repeatableprocesses in a clear manner
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Page 18 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Sourcing ProcessAutomated RFx Creation
Automated transfer ofvisualization and specificationfiles
Automated RFx template
selection based upon items
Insures common data source
Organizational Cost Management Maturity
ValuetoOrganization
Standalone/Ad-hocFunctional
Teamobjective
Competitivemarket & customer
driven with NPDIprocess
Integrated withPLM & SRM forDesign-to-Cost
Demo
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Page 19 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Sourcing ProcessCost breakdown capability
Rapid analysis of suppliersproposals
Award decision automaticallypopulated in Teamcenter
costed BOM
Total cost transparency
Demo
RFx process that supportscommodity management arewoefully inadequate.the best
hope for leadership comes fromPLM vendors..
IDC
"Companies are going to have toachieve at least a 10 to 15 percent
productivity improvement over thenext two to three years just to stayin the game.
AlixPartners
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Page 20 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Teamcenter for SRM
Synchronization with Product
Development
Integrated Sourcing Process
Integrated SupplierManagement
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Page 21 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Supplier ManagementThe Need for Supplier Management
How critical is effectivesupplier management toyour organization?
AMR estimates up to 75% of avehicles parts come from thirdparty suppliers
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Page 22 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Supplier Registration and Content Management
Analyze Supplier Performance
Integrated Supplier ManagementBenefits
Categorize Suppliers and Their Capabilities Secure
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Page 23 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Supplier ManagementAchieving Value: The Supplier Integration Effect
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
Cost
Savings
Quality
Improvement
Time
Savings
Percentag
eofChange
20%
-15%
30%
50%
-25%
-12%
Most Successful Supplier Integration Efforts
Least Successful Supplier Integration Efforts
Source: Michigan State Global Procurement and Supply Chain Benchmarking Consortium
Successful supp l ier integrat ion
into new-produc t and new-
proc ess development act ivi t iescan result in cos t saving s,
increased qual i ty and time
savings.
Teamwo rk affects
more than c ost .
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Page 24 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Supplier ManagementSupplier registration and content management
Managing supplier records canbe a huge resource drain Leaving less time to understand
supplier capability
And even less time to mange
supplier performance
Example:
120,000 X 0.50 = 60,000 suppliers
60,000 X 0.20 = 12,000 suppliers
12,000 X 1 hours = 12,000 hours
12,000 hrs 2,000 hrs/yr =
6 work years
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Page 25 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Supplier ManagementCategorize suppliers and their capabilities
Identify
Qualify
Invite to Design
..category can't be managed to
cost savings aloneit needs anew approach that we refer to asPerformance Based Procurement
Bob Parker, Manufacturing InsightsDemo
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Page 26 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Integrated Supplier ManagementAnalyze supplier performance
Optimizes supplier performanceacross a full set of characteristics Satisfaction of design objectives
Quality
Availability
Traceability Cost
evaluating performance
measures is not a strength of
either the procurement specialistsor the ERP vendors. ..Look to your
PLM software provider first..
Bob Parker, Manufacturing
Insights
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Page 27 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Before Teamwork
Purchase Order
10 + Access Databases
Supplier Signs LOI
SupplierA
Rationale
NPV Analytics
Aw
ard
Recomm
endation
Virtual Part File
Are we
there yet?
Buyer Chases Approvals
SupplierA
Buyer Emails RFQ
Supplie
rB
SupplierC
Buyer createsLetter of intent
Information
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Page 28 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
SRM
The Teamcenter Enabled Process
Supplie
rB
SupplierA
Su
pplierC
PLM
Issue Purchase Order
ERP
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Page 29 2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
Siemens PLM Software
Summary
Integrated Supplier Management - essential for capability &performance based selection
Integrated Sourcing Process - essential for strategic sourcing
Synchronization with Product Development - essential for productcost management
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2009. Siemens Product Lifecycle Management Software Inc. All rights reserved
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