OEM COMPANIES & THEIR PRODUCT COST MANAGEMENT

INTRODUCE ALL NECESSARY TOOLS  TO MANAGE YOUR PURCHASING ACTIVITY FROM R&D STAGE UP TO MASS-PRODUCTION

RFQ PROCESS: NOT AS SIMPLE AS IT SEEMS

Prepare RFQ forms for different amounts, different sources, by providing the technical specifications for custom parts. Send RFQs to different suppliers considering the distributors, your purchasing strategy, remind, collect offers.

Capitalize, share and reuse all this data to optimize the entire process.

THE COLLABORATION BETWEEN THE R&D AND PURCHASINGS DEPARTMENTS IS A STRATEGIC STAKE

80% of costs are fixed at the design stage of the product. For electronic products, 80% of the cost come from material: a major stake!

80% of costs are fixed when designing a product, and in electronics 80% of costs correspond to the materials share: a big deal! The optimization is based on sharing and centralizing information among the purchasing and R&D departments: Choosing components taking into account those already active in the ERP, additional technical criteria and prices. The R&D team makes the sourcing performs RFQs and must take into account the recommendations of the purchasing department; a considerable amount of information to handle at the intersection of CAD and ERP with only Excel as tool. Sharing all of this data between the R&D and Purchasing department helps reduce costs, avoids redundancies through the products development and reduces the “time to market”.

COSTING YOUR BILL OF MATERIALS

Throughout the development process, it is necessary to evaluate products’ manufacturing costs and in particular to enhance the BOM. This activity is performed manually with Excel being the ERP not the right tool at this stage (new items not created in the ERP and therefore no price, provisional BOM). Assessments are often necessary to validate the technical options and are made by seeking prices one by one on the internet.

The centralization of all purchasing data (price, MOQ, deadlines) collected by the R&D team, but also by buyers makes this an extremely tedious activity, moreover, developments in the design imposes frequent updates

SUSTAINED COST REDUCTION

Negotiating is a major lever for reducing costs, thus in order to have the best performance each step of its process must be well organized: Gathering purchasing forecasts, consolidating amounts by MPN, sending the RFQs, importing and analizing bids, negotiating and awarding.

The amount of data, updates and the need to reuse all the information impose a suitable tool to achieve successful negociation rounds with your providers.

Negotiating is a major leverage for cost reduction