This is part 3 of 10 in our series on benefits of AX 2012 for ETO organizations. Previously we covered Product Management and Technical Sales features. Today we’ll explore several unique supply chain challenges, such as:
- > Multi-site supply chain
- > Material requirements pegged to project or project task (WBS)
- > Unique, one-of-a-kind materials for specific product or project
Multi-site manufacturing supply chain
Many ETO companies build at multiple manufacturing sites, across legal entities. Each site has their own supply chain staff working to handle the material requirements at their facility, even when there are common materials that could be planned and purchased for all facilities at a greater volume discount. Many ERP systems are not able to handle the multi-site supply chain with ease.
With AX 2012, you can view and manage the supply chain across the enterprise, consolidate purchases and gain the benefits of lower overall material costs. The multi-site company can automate many of the supply chain processes, create centralized supply depots where applicable and gain the cost savings of consolidated purchasing. AX 2012 helps you establish a centralized procurement desk capability across the organization to support procurement policies and processes.
Project-oriented planning tools
Another interesting aspect of the ETO or BTO builder is the need to link or peg materials directly to specific projects or tasks within the WBS of the project. Traditional ERP can’t handle project/task material requirements without obscuring material availability or diluting costs for common materials applied to a project. ERP for ETO must link materials to projects and specific tasks while providing bucketed supply chain overviews, planned orders, exception messaging, rescheduling and order qualifiers.
With AX 2012, the Project Managers and planners have the best of both worlds. Since requirements come directly from project tasks materials are delivered exactly when they are needed. Planners have project- oriented shortage reporting and visibility. They use a single bucketed supply screen to evaluate and execute the supply plan, including creating or firming purchase or production orders or Kanban supply.
Unique, one-of-a-kind materials
The ETO supply chain professional deals with unique, one-of-a-kind, materials. Their sourcing often involves an extensive search usually followed by a bid or Request for Quote process. In many cases the items may never be used again. Minimum order quantities and other supplier constraints put additional cost pressures on the ETO builder.
AX 2012 makes it possible to quickly process these unique requirements through an integrated RFQ process. From the RFQ they can be immediately converted to a purchase order that schedules and assigns the material directly to the project. The supply chain professional can save valuable time and reduce steps that add overhead and result in the potential cost impact of delayed materials. AX 2012 ETO for ERP provides a means to handle non-stock items so unique materials don’t have to live in your product master data forever.
For more details on the enhanced supply chain features of AX 2012 ERP for ETO or BTO companies please visit our Engineer to Order page.
