MasterBOM Cloudware

Lexi has developed MasterBOM, a best practice cloudware solution, to support you with BOM scrubbing and Should Cost analytics

MasterBOM is the only solution that enables you to strategize, drive cost down, improve quality and increase delivery performance for your entire supplier base. Read or download our MasterBOM brochure! 

MASTERBOM CREATES TRANSPARENCY

MasterBOM is the number one solution for managing quality, delivery and cost for your outsourced production. It helps create transparency within your company, across divisions and throughout your supplier base. Providing you with thorough spend management analytics, MasterBOM also facilitates supplier collaboration and follow-up through its global dashboards and in-depth reporting capabilities. Moreover, MasterBOM offers the following benefits: significant time reduction in day-to-day tasks, improved quality, increased delivery performance and 5-25% cost reduction in 3-12 months. With other words, we provide customer value.

The challenge with outsourcing

Manufacturers (OEMs) commonly outsource production of products or parts to subcontractors but still want to keep control and have transparency as if they were doing their own manufacturing. However, it is a challenging task to have control over the manufacturing and ensure products are delivered at the right time with the right quality to the right price. Lack of system support and fuzzy data from subcontractors and suppliers make the control of the supply chain performance a daunting task. Without visibility into the supply chain, you need to trust that your subcontractors deliver high quality products on time to the lowest cost.

Taking Control of outsourcing

Information is key to taking control of outsourcing. Information, or data, need to be collected for the operations and elements that need to be measured. In practice, this means 1) collect data from your subcontractor and supplier base and 2) "scrub" the data to ensure consistency and accuracy. With the right information, your sourcing organization can consolidate your spend across regions and divisions which create visibility. To regain control, you need to:

  • Determine the Should Cost for each product
  • Identify cost-savings
  • Monitor and follow-up your subcontractor and supplier base to the 3rd or 4th level up-stream in the Supply Chain.

Easily implemented and no upfront investment

The Cloudware technology is very well-suited where external collaboration takes place, for example with subcontractors or suppliers. Easily implemented, MasterBOM means no upfront investment in expensive license or hardware and is managed by the Lexi BOM team. Our BOM team takes care of data collection, data processing and data uploading. It is also tailored to address your sourcing challenges covering:

  • BOM Scrubbing - Our dedicated team supervises and collects information, which we process to provide one set of numbers with a required level of details. MasterBOM consolidates information per category, supplier, commodity etc. to report material costs.
  • Should Cost analytics - MasterBOM supports "Should Costing" that is a process of analyzing the cost of a part or product, based on the material costs along with the value-added manufacturing labor and overhead costs.
  • Supply Chain visibility - MasterBOM offers visibility into your supplier and subcontractor base where you can find out their spend, commodity, production and engineering data. It also supports dashboards visualizing past savings and future Should Cost potentials.

Best practice Cloudware solution

MasterBOM is a best practice Cloudware solution developed by Lexi that allows you to take control without investing time. It supports you with Spend Analytics, internal and external collaboration and performance measurements. It ensures an effective and fact-based negotiation process between you, as a product-owner, and your subcontractor. Supporting you with data collection and ensuring data quality, Lexi provides training through our workshop-oriented training approach. We support you all the way and deliver a key-ready solution that will drive your cost-down activities from identification to implementation.