01 November 2001 | Robin Parker
Strategic sourcing of direct materials forms a key part of Agile Software's latest product chain management strategy.
Product Sourcing is one of three modules devised by Agile to strengthen supply chains in IT, automotive and electronics.
It allows users to determine costs, designs and suppliers for new products. It also provides current and future market trends data.
The concept replaces the group's Agile Anywhere products. It manages processes by linking manufacturing, purchasers, suppliers, engineers and service organisations. Other modules aid product collaboration, service improvement and product development.
Greg Scott, Agile's senior vice-president for marketing, said the trend for outsourcing places heavy demands on buyers and that a focus on product management can reduce direct material spend by up to 5 per cent and sourcing time by 90 per cent.
"It has turned into a process of assembling rather than manufacturing," he said. "Changes need to be made in real time across different firms and costs need to be driven down."