Supplier Collaboration

What is Supplier Collaboration

Supplier Collaboration reduces supply chain variability by sharing demand and supply forecast with customers and suppliers across multiple tiers.

GT Nexus Supplier Collaboration allows buyers to share production plans, forecasts, commitments, and orders, allowing suppliers to be more responsive when meeting demand requirements from thousands of miles away. With a high level of communication in the cloud, companies can improve on-time delivery rates to customers and adapt to rapidly changing demand without adding to inventory costs. Supplier Collaboration aligns supply and demand across tiers.

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Components

  • Supply planning collaboration

    Real-time collaboration on capacity plans, forecasts, and supply schedules. Ensure capacity and resources will meet forecasted demand and identify potential problems. Alert trading partners to demand changes.
  • Order collaboration

    A single view of order data between companies and their suppliers. Confirm or negotiate order items across multiple orders and items simultaneously. React to issues faster and earlier. Reduce cycle times.
  • Tier 2 collaboration

    Tier 2 supplier collaboration on forecasts, plans, and commitments. Track actual orders against commitments and receive alerts in the event of potential pre-orders, over-consumption, under-utilization, or excess.

Communicate supply plans and forecasts earlier to remove potential friction. 

Key Features

  • Ability to share forecasts and confirm capacity with suppliers and customers
  • Complex, multi-tier collaboration
  • Electronic management of tier 2 commitments and reservations
  • Automated tracking of production, actual usage, and on-hand inventory versus commitment or reservation quantities
  • Ability to identify and manage material excess
  • Planning accuracy measurement by comparing orders to forecasts
  • Alerts when supply cannot meet forecasted expectations, under-utilization, or excess of tier 2 materials

Key Benefits

  • Improves margins through postponed finished goods decisions
  • Improves on-time delivery rates and in-stocks as suppliers are better positioned to meet demand
  • Allows faster reaction to demand and capacity changes
  • Lowers cost of goods sold through collaborative issuance of capacity projections and commitments
  • Improves forecast planning accuracy
  • Improves use of excess inventory

The real challenge is managing exceptions and being able to accelerate the flow of information to deal with changes to the plan. I think that is the opportunity where some of these newer platforms have an advantage… communicating data and information between trading partners much more quickly than EDI systems.

Adrian Gonzalez, Talking Logistics
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