Sourcing encompasses all the business processes required in the procurement of goods and services. These processes in the sourcing model
of the supply chain includes: selection of suppliers, design of supplier contracts, product design collaboration, and procurement of
materials and evaluation of supplier performance. Strategic sourcing, when implemented with the right tools, not only maximizes cost
savings but also improves supplier performance and minimizes risk. Pressure on firms to achieve lower costs and higher quality as a result
of demands from the end consumer, more and more companies are beginning to reduce their vertical integration and outsource more of their
manufacturing needs. As a result, Cost of Goods Sold represents a higher fraction of percent of sales for most major manufacturers.
The BYTE Sourcing Solution helps our clients to achieve greater economies of scale through our Production Order Tracking (POT) in which
orders can be aggregated and tracked through multiple contractors along with specified and separate milestones for each. Through the use
of the Web Milestone Update enhancement, vendors and contractors are effectively able to collaborate on design, work in process and
manufacturing productivity and efficiencies. This enhanced coordination capability improves forecasting and planning which in turn
lowers inventories and improves in matching supply with demand.
In addition, utilizing the BYTE Controlled Inspection Audit (CIA), quality checks can be coordinated at both in-line and finished goods
stages of production. Creating quality checks with vendors and contractors helps to manage performance checks for supplier scoring and
assessment as well as to analyze quality efficiency levels between different departments to improve overall productivity and efficiencies.
BYTE’s Purchase Finished Goods (PFG) and Sourcing Automation Management (SAM) modules track and communicate on finished goods from the point
the raw materials are pulled and consumed to when the finished goods are shipped and received. The BYTE Sourcing Solution for your supply
chain allows our clients to implement their sourcing strategy and monitor the factors that have the greatest impact on performance and cost
through coordination and collaboration with the vendor or contractor which provides greater significant value over increasing the efficiency
of procurement transactions.