Demand Management On Company Development Strategies

Company development strategy /competitive advantage [technical innovation, customer experience, product quality, cost leadership]

New platform development, new product development

New investment plan

…

Demand Management As To Company Policies

Guideline documents related to company policies：

HSE MS(Health Safety and Enviromen Management System,

Sustainable development

Procurement compliance policies

…

Demand Management On Company Business Plan & Operation

Business plan

Purchasing budget

Purchasing KPIs

Production & Planning

Forecasting & Planing, MRP, TCO, TQM, TPM …

Project demand management, supply chain strategy …

…

Customers Demand Management

Technical specification

Value Engineering/Value Analysis

Quality control processes Development[APQP,FMEA,SPC,MSA,PPAP…]

…

Spend Cube Analysis: the window into Strategic Sourcing 

Spend analysis is the process of collecting spend data from all purchasing sources and systems, cleansing the data, categorizing the data and analyzing it for the purpose of understanding spending trends and identifying saving opportunities. 

Spend By Supplier

Spend By Category

Spend By Business Units

Benefits of Spend Analysis

Benchmark performance

Data driven sourcing

Full visibility on spend

Identify savings opportunities

Streamline operations

Manage risks

Improve supplier performance

…

Process for Spend Analysis

The first step is to define the objectives of the spend analysis exercise. 

It is important to define the objectives clearly because that will drive your data gathering and analysis efforts. 

…

The Ojectives of Spend Analysis

Understand spend at a granular level so that sourcing team can identify saving opportunities.

Understand key vendors so that procurement can define and execute a strategy for strategic vendors.

Provide visibility to senior management on key spend areas impacting EBITDA margins. For example COGS(Cost of goods sold) spend, SG&A (Sales, General and Administration) spend.

…

Demand Matrix Data Base for Customers on:

Company Strategies Level

Company Policies Level

Company Business Plan Level

Production & Planning Level

New Project Level

Technical Specification

Quality Requirements

Should Cost & Target Cost

Project Timeline

Quantity & Spend Planning

Supply Chain Planning

…

Provides the guideline for sourcing direction

Accelerated time to value

Increased spend visibility

Improved compliance and transparency

Improved user experience

Reduced operational costs

…