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Commerce One has extended its solution offering to bring the benefits of the Global Trading Web to the direct materials space. The Commerce One Direct Material Solution will not only automate the procurement process, but also enable sophisticated sourcing and planning between all supply chain members. By increasing visibility between trading partners, it will transform the current, manual, assumption-based planning techniques into automated, fact-based methods, providing buyers with increased responsiveness and suppliers with access to perishable demand. All participants will realize significant cost savings, not merely through automation of routine ordering tasks, but also through the improved responsiveness of their supply chain.
The business transaction capabilities of the Commerce One MarketSite platform will be extended to provide the information sharing and collaboration necessary to meet the needs of direct material procurement. Connectivity between enterprise design, MRP, ERP, and APS systems will enable companies to share real-time, fact-based data on component demand availability and lead-time.
Frequently asked questions regarding the Direct Material Solution are addressed in the FAQ section.
MarketSite Direct Material Services
The Commerce One Direct Material Solution will provide a new set of MarketSite Direct Material Services, which can be viewed in 2 dimensions.
These services will support sourcing, planning, and execution processes, providing increasing levels of portal capability. Initial services will allow transmission of information and transactions. Services will then be expanded to support real-time visibility. Ultimately, intelligent capabilities will be added to the MarketSite portal to enable rule-based processing of information and transaction requests.
The business processes supported by the Direct Materials Services are:
- Integrated Sourcing - Integrates strategic and tactical sourcing processes, providing decision support tools to optimize supplier and component selection.
- Collaborative Planning - Enables real-time exchange of planning data and integration to planning systems to expedite decision-making based on real-time availability and demand information.
- Auto-Execution - Automates communications between manufacturing systems to provide instantaneous communication of procurement and replenishment decisions.
Benefits of the Commerce One Direct Material Solution
The benefits of the Commerce One Direct Material Solution are significant:
- Reduced Costs - Streamlined administrative processes and improved supply-chain visibility will enable a company to achieve between 20 percent and 50 percent savings in total supply-chain cost-which can translate to between two and five percent of annual sales revenue.
- Improved Visibility throughout the Supply Chain - The Commerce One Direct Material Solution will provide instant, accurate visibility of supply and demand data between trading partners.
- Faster Execution - Automated execution of direct material purchases will eliminate manual processes, resulting in increased reliability and speed of communication. Procurement cycle times can be reduced by as much as 90 percent, drastically improving the responsiveness for both buyers and suppliers.
- Flexible Trading Platform - The Commerce One Direct Material Solution will support open, heterogeneous connectivity via Web browsers, the Direct Material Connector, fully integrated applications, and a variety of communication standards including EDI, XML, etc.
For more information about the Commerce One Direct Material Solution, please read the following:
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