Foster City, CA—Feb. 1, 2012—E2open, a provider of strategic, cloud-based solutions for global trading networks, has made available E2open Multi-Tier Cost Management (MTCM), a new solution for brand owners and their trading partners designed to enable cost management on a continuous basis across multiple tiers of a trading network for increased profitability.
Today, brand owners depend on complex networks of outsourced design and manufacturing partners for their expertise and the cost advantages they provide. Procurement professionals negotiate component, assembly, and system contracts based on volume breaks and other performance factors with multiple types and tiers of partners. Transportation costs, total volume price breaks, regional tax advantages, cost to serve, risk mitigation and aftermarket promotions are important factors. However, these factors can change at any time during the production process, even after an order has been placed, making it difficult to optimize costs.
“We see more companies investing in solutions to manage risk in supply networks, and part of that is understanding a multi-dimensional view to dynamic costs,” said Bryan Ball, vice president and principal analyst at Aberdeen Research.
“Multi-Tier Cost Management helps customers increase visibility and control in a world of accelerating supply chain complexity where demand is unpredictable and supply is not in your control,” said Mark Woodward, president and CEO at E2open.
E2open MTCM enables brand owners, suppliers, and contract manufacturers to collaborate in real-time during the production process on bills of material (BOMs) and related costs, cost forecasts, and rebates. It captures frequent product and cost changes in an “execution BOM,” which is then integrated into multi-tier business processes for cross-network visibility and timely cost management.
“Not only are costs not static, prices paid to vendors do not always reflect the ultimate cost to the enterprise, as schedules and item-level pricing are frequently updated in the procurement process. For example, rebate schedules and programs can impact true cost, over a contract period, rather than just on the individual invoice or payment approval level,” said Jason Busch, founder of procurement blog Spend Matters. “A multi-tier approach can be transformational in obtaining a true picture of the overall cost drivers across the supply chain. There is not a replacement for this visibility.”
Multi-tier Cost Management features include: Multi-tier cost management enablement, landed cost management, partner synchronization, repair bill of materials, cost forecasting, supply allocation management, and rebate management. For more information, visit http://www.e2open.com/mtcm.