# AI-Guided Part Procurement Savings

Realize Significant Product Part Savings by Combining Artificial Intelligence and 3D Similarity Technologies

NETVIBES Product Part Sourcing & Standardization Intelligence

NETVIBES Product Part Sourcing & Standardization Intelligence

 ![NETVIBES Product Part Sourcing & Standardization Intelligence](https://www.3ds.com/assets/invest/2024-12/sourcing-standardization-video-thumbnail.jpg)

netvibes_product_part_sourcing_&_standardization_intelligence

1 minute 34

Inline video

The Growing Product Parts Catalog

Reorganizations, mergers, global projects, personalization and innovation are all opportunities to add product parts to the catalog, thus increasing costs to design, test, source, manufacture, and store the parts. In addition, data silos and lack of communication between Engineering and Procurement functions can lead to poor management of expenditures. Furthermore, due to global disruptions, manufacturers report that suppliers are less reliable/predictable while costs are rising, transportation and deliveries are delayed, and factory capacity is reduced. Supply chain problems can drain revenue, but enhancing collaboration between Engineering and Procurement can help companies [anticipate and mitigate these risks](https://www.3ds.com/products/netvibes/supply-chain-risk-management-intelligence).

## Better Manage Procurement Expenditures

According to [Deloitte’s 2023 Global Chief Procurement Officer Survey](https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consulting/us-2023-global-chief-procurement-officer-survey.pdf "Deloitte 2023 Chief Procurement Officer Survey"), driving operational efficiency is at the top of enterprise priorities. Leading strategies to **deliver the most value** include: increasing supplier collaboration; enhancing data management; and renegotiating with existing suppliers. **3D**EXPERIENCE solutions help you do just that.

Data science optimizes a company’s procurement strategy and identifies **major potential savings**. Thanks to unique **artificial intelligence-driven** and 3D CAD Similarity technologies, industry leaders are cross-linking Engineering and Procurement data (ERP, PLM, Quality Management systems and other data sources) to quickly reveal similar or identical parts purchased with different reference numbers, suppliers and prices. Information is accessible through a seamless user interface for efficient sourcing and purchasing of the right parts from the right supplier at the right price and time.

From the design phase to sourcing and standardization management to AI-guided component search all the way through supplier negotiations, **3D**EXPERIENCE solutions decrease complexities and costs, minimizing compromises between program margin and time-to-market while ensuring quality. Turn your sourcing process into a strategic advantage with **data-driven collaborative sourcing** for dramatic savings.

3DEXPERIENCE Product Part Procurement Key Benefits

Lower Procurement Costs by 5-15%

 ![](https://www.3ds.com/assets/invest/2024-04/icon-074-reduce-cost.png)

Increase Operational Efficiency by 10-30%

 ![](https://www.3ds.com/assets/invest/2024-01/icon-002-improve.png)

Reduce Design Cycle Times by 30-70%

 ![](https://www.3ds.com/assets/invest/2023-05/icon-078c-reduce-time.png)

Decrease Variants by 20-50%

 ![](https://www.3ds.com/assets/invest/2022-11/icon-007-reduce-time-design.png)

(NETVIBES AI-Guided Part Procurement Savings Highlight) Generate Savings & Protect Margin

Meet Louise, a component manager. Equipped with NETVIBES data science solutions, she’s able to **generate part procurement savings and protect her company margin**.

- Anticipate raw material price volatility impacts on vehicle cost
- Optimize procurement strategies with real-time insights
- Identify cost-saving alternative parts

[Source to Contract 1](/media/21354)

(NETVIBES AI-Guided Part Procurement Savings Highlight) Key Capabilities of Product Part Procurement

Watch as engineers, suppliers and Procurement professionals collaborate around the virtual twin to decrease the complexity and cost of compromises between program margin and time-to-market. You’ll see how they’re able to identify negotiation opportunities and ultimately find the best parts that **minimize risks and carbon footprint while realizing continuous sourcing improvement**.

[Source to Contract](/media/16732)

## Customer Case Studies

Learn how leading companies are using **3D**EXPERIENCE data science solutions to better manage the sourcing and standardization of their product parts.

## (NETVIBES Optimize Product Part Procurement - Marketing asset WOC)Start Your Journey

The world of Product Part Procurement is changing. Discover how to stay a step ahead with **3D**EXPERIENCE.

(NETVIBES) Product Part Procurement FAQs

What is the value of increasing collaboration between Engineering and Procurement?

One missing or wrong part can delay a product launch, increasing costs and potentially impacting quality. With growing global disruptions, companies need reliable suppliers of the right parts. Collaborating on the **3D**EXPERIENCE platform, Engineering and Procurement professionals have the information they require to source the right parts from a vendor nearby, economically and efficiently.

How can streamlined procurement improve operational efficiency?

By carefully managing resources and inventory and working with Engineering to make better informed decisions about whether to reuse, purchase or make a part, Procurement contributes directly to the bottom line.

What is the best way to decrease part procurement costs?

Artificial intelligence spend analytics can help Procurement professionals find the right component at the right price from the right supplier in order to decrease part procurement costs significantly.

What is the difference between parts purchasing and procurement?

The main differences between parts purchasing and procurement are in their scope and strategic approach:

**Aspect****Purchasing****Procurement**ScopeTransactional aspect of acquiring goods or servicesBroader range of activities beyond purchasing, including strategic planning, sourcing, negotiation, supplier management, risk assessment, and contract managementStrategic approachMore tactical and reactive, focusing on immediate needs and best pricesStrategic approach, considering long-term goals, supplier relationships, and overall supply chain efficiency

What are the 3 types of procurement?

The three main types of procurement are Direct, Indirect and Services Procurement:

1. **Direct Procurement**: Involves the acquisition of goods, materials or services directly related to the production or operation processes of an organization. These items are typically essential for the organization's core activities and contribute directly to its output or service delivery.
2. **Indirect Procurement**: Covers the acquisition of goods, materials or services that are not directly used in the production or operation processes but are necessary to support the organization's overall functioning. This includes items such as office supplies, maintenance services, IT equipment and marketing services.
3. **Services Procurement**: Focuses specifically on the acquisition of services required by the organization to support its operations or achieve its objectives. This includes services such as consulting, outsourcing, legal services, maintenance and repair services.

Why is the procurement process important?

The procurement process is important in business for several reasons:

- **Cost Savings.** Effective procurement strategies can lead to cost savings by negotiating favorable terms with suppliers, leveraging economies of scale and optimizing purchasing processes. This helps businesses reduce expenses and improve their bottom line.
- **Supply Chain Efficiency.** Procurement plays a critical role in ensuring a smooth and efficient supply chain. By sourcing quality materials and services on time, businesses can minimize disruptions, improve production efficiency and meet customer demands more effectively.
- **Risk Management.** Procurement helps businesses manage supply chain risks by diversifying suppliers, assessing supplier performance, and implementing contingency plans. This reduces the likelihood of disruptions due to supplier failures, market fluctuations or other external factors.
- **Quality Assurance.** Procurement ensures that businesses obtain high-quality goods and services that meet their specifications and standards. By selecting reputable suppliers and conducting thorough inspections, businesses can maintain product quality and customer satisfaction.
- **Innovation & Competitive Advantage.** Strategic procurement can drive innovation and give businesses a competitive edge. By collaborating with suppliers to develop new products or processes, businesses can differentiate themselves in the market and stay ahead of competitors.
- **Compliance & Ethics.** Procurement helps businesses ensure compliance with regulations, standards and ethical practices. By vetting suppliers, monitoring their practices, and enforcing ethical sourcing policies, businesses can uphold their reputation and mitigate legal and reputational risks.

What are the 7 stages of procurement?

The seven stages of procurement typically include Identifying Needs, Supplier Identification, Vendor Evaluation & Selection, Negotiation, Purchase Order, Receipt & Inspection and Payment & Performance Evaluation:

1. **Identifying Needs**: Understanding and determining the goods, services or materials needed by the organization to fulfill its objectives.
2. **Supplier Identification**: Researching and identifying potential suppliers or vendors capable of supplying the required goods or services.
3. **Vendor Evaluation & Selection**: Evaluating potential suppliers based on criteria such as quality, price, reliability and past performance in order to select those most suitable.
4. **Negotiation**: Negotiating terms and conditions, including pricing, payment terms, delivery schedules and service levels, with selected suppliers to secure favorable agreements.
5. **Purchase Order**: Issuing a purchase order to the chosen supplier, detailing the agreed-upon terms and specifying the quantity, price and delivery details of the goods or services.
6. **Receipt & Inspection**: Receiving the goods or services from the supplier and inspecting them to ensure they meet the agreed-upon specifications and quality standards.
7. **Payment & Performance Evaluation**: Processing payment to the supplier for the delivered goods or services and evaluating supplier performance against pre-established metrics or KPIs.

What is procurement in supply chain management?

Procurement in the supply chain involves acquiring goods, materials, or services **from external suppliers to support an organization's operations**. It includes activities such as supplier identification, selection, negotiation, purchase order processing, receipt and inspection and supplier relationship management. **Effective procurement ensures**:

- availability of quality materials
- minimized costs
- reduced risks
- optimized supply chain performance

(NETVIBES Product Part Procurement) Also Discover

[Value Network](/products/netvibes/value-network)

[OnePart](/products/onepart)

[Optimize Product Design with the Right Parts Sourcing and Standardization](/insights/optimize-product-design)

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