BOM Compare (formerly known as New Product Introduction) has a feature in the program management view to send Requests for Information (RFIs) to vendors directly. This removes the need for manual communication or switching back and forth between modules within the LevaData Platform and allows users to get updated parts information (e.g. costs, terms, etc.) from vendors.
User permissions are required for access. Your company's tenant administrator can grant access to this feature by adding NPA RFX user permissions to any user who requires this ability.
Use Case: Commodity Scope
When a Program Manager or Global Commodity Manager (GCM) needs updated Parts information from any Supplier, they can select Customer Part Numbers (CPNs) and send RFIs.
After selecting the CPN(s), users can enter a unique RFI Name as shown below:
RFI Initiation and Confirmation
When the user clicks on the Send RFI button, the RFI is first initiated in the backend. Then a popup confirms the successful RFI communication.
RFI Details are then updated on the BOM
Note: If a CPN is part of an existing/open RFI, it will not be available for selection.
It is important to ensure that your vendor list is properly updated within LevaData Platform and reflects all of your active vendors. Not all users have access/permissions to manage vendors; however, if you do, you can navigate to the three-dot menu and select Manage Vendors:
Vendors can view and manage the RFI just as they manage Requests for Quote (RFQs). They have the option to fully respond or decline to bid on all or a portion of the RFI.
Once they have responded, one of two things will happen depending on the BOM Status:
- If the BOM is checked out, the View BOM screen will show a popup to confirm updating the BOM with the response.
- If the BOM is checked in, the responses are automatically updated by the system.
You can click on the RFI name and be brought directly into the RFI for further review if needed.
Product RFI vs. Commodity RFI
- Product RFI is sent to a CM/ODM or Joint Development Manufacturer (JDM). Negotiation takes place at a product level or within the sub-assemblies of products (see image below), but negotiation takes places with CM/ODM not Tier 2 Suppliers. Customer-side negotiation is led by product managers and operations.
- Commodity RFI is sent to Suppliers. Negotiation takes place at a component level, and it is led by commodity managers. Product negotiation is a higher level up in the manufacturing process than commodity negotiation.
- If the commodity manager needs capacitors for multiple products (for example), they will just negotiate for a lot of capacitors and array them as they see fit across the product family.
CM/ODM Response and Light vs. Heavy
- CM/ODMs can respond with product-level cost or part-level cost, based on user requirement.
- If you want to push CM/ODMs to respond at the part-level for better transparency, it can be configured accordingly through the backend.
With specific parts in the sourcing world, and depending on your organization's sourcing maturity model, you may either be light or heavy on CM/ODM:
Heavy: the majority of the BOM is being controlled by the CM/ODM. In a heavy model, CM/ODMs prefer to quote at the sub-assembly level. CM/ODMs do a lot of the initial part sourcing themselves and get their margins at the sub-assembly level.
Light: the majority of the BOM is being controlled by the customer themselves. As buyer organizations mature, they want transparency into this process, and they naturally migrate to the light model. They do not want CM/ODMs to quote at the sub-assembly level, but at the part level. This way they gain transparency into the Bill of Materials / initial manufacturing process.
How you orchestrate your requests will depend on your organization's unique requirements and sourcing maturity model. The LevaData platform assists you in easing into the light model by providing community data on to inform negotiation strategy at the part level.