cnp

Multi-Enterprise / Multi-Tier Transaction Execution.

Provides capabilities for companies to consolidate spend, and leverage purchasing authority across the extended value chain.

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Product Overview

Companies that outsource manufacturing processes can lose the leverage of purchasing downstream parts and materials, as contract manufacturers assume the responsibilities for sourcing these parts and materials. Newview Technologies supports complex procurement models that enable companies to purchase materials on behalf of suppliers, and then sell those materials back to suppliers.

Industry Programs Supported:

  • Automotive/Industrial Re-Sale or Re-Bill Programs
  • Electronics and discrete parts oriented Buy/Sell Programs
  • Provides secure, role and company based user roles, and pre-configured inter-company workflow to manage complex procurement programs.
  • Supports highly collaborative interaction, while ensuring security with respect to key pieces of information, in particular masking prices from relevant parties
  • Pre-configured material templates that allow the Bill of Resources to extend to the raw material (highly attributed) level Automated financial management of AP/AR, Credit/Debit and Set-off feeds.
  • Support for 3rd party administration in conjunction with BPO partners Can be delivered in a variety of hosting models including on-site, as part of a managed services or hosted by Newview
  • Highly secure.

Example of a Multi-Tier / Multi-Enterprise Procurement Program: Sourcing Model, ‘Buy-Sell’ (also referred to as ‘Resale’)

Benefits Summary:

  • Reduce Purchased Part and Material Costs through leverage and price masking.
  • Companies that have implemented this program see a part/material cost savings of four to 14%.
  • Reduce contract manufacturing, assembly, processing charges based on getting better clarity on input part and material costs.
  • Enable suppliers to focus on true VA/VE activities rather than managing raw material input costs.
  • Reduce administrative overhead and allow your most important resource, your people, focus on strategic initiatives that strengthen your competitive advantage.

Managing credit risk and insulating the supply chain from credit challenges

In today’s environment, extended supply chains are challenged by the financial health of participants.OEM’s that are financially healthy themselves may face the risk of production shutdowns, as part suppliers stop shipping to contract manufacturers with poor credit. In fact, our analysis of the credit profile of the participants in value chains in a number of industries indicate that the mid-tiers, and not the primary part supplier or the OEM’s, who are in the worst credit position.

To view a sample supply chain credit profile of the Automotive Industry in July of 2009, click here. An added benefit of re-sale programs in the current environment is that they cushion the value chain from times of dramatic price changes and also provide a means of ensuring supply for partners that fall into financial difficulties, without impacting the credit exposure of the OEM.

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