LevaData, the company that delivers applied AI to transform strategic sourcing and procurement, today announced the launch of LevaData NPI (New Product Introduction), a solution extension of the LevaData Cognitive Sourcing Platform. Designed and built for enterprise manufacturing companies, LevaData NPI offers industry-first supply chain insights and actionable guidance to product planning, launch and introduction teams. LevaData NPI applies artificial intelligence (AI) to direct procurement data and integrates analyst findings and benchmarks, as well as enterprise buyer and seller activity on the LevaData procurement network, in order to identify opportunities for NPI teams to achieve target cost goals and greater agility while decreasing manufacturing risk and increasing profit margins.
An estimated 60-80% of product cost is “locked in” during the design stage, and, given strict supplier onboarding and production deadlines, NPI teams at enterprise manufacturing companies frequently lack the time and insights needed to optimize parts, suppliers and target costs for a given Bill of Materials (BOM). This is because design BOMs are often completed late in the product launch process due to the time and effort required to collaborate across departments and typically suffer from missing information and inaccurate data. This results in a lack of visibility into a product’s true lifecycle cost.
However, AI-driven insights from NPI and the LevaData platform enable enterprise manufacturing companies to fill these gaps in knowledge, empowering their NPI teams to develop a comprehensive BOM analysis early in the launch process. With LevaData NPI, teams can significantly improve gross margins over a product’s complete lifecycle by identifying current and future cost savings opportunities. The LevaData NPI solution also alerts users to potential “risk drivers,” such as identifying the use of end-of-life (EOL) parts, items sourced from a single supplier, and any supplier that may have future production issues based on factors such as financial health, quality ratings and location-based risks.
In addition to mitigating part-level risks, LevaData NPI helps teams manage program-level risk by notifying users about upcoming deadlines, including outstanding items and tasks, as well as advising LevaData NPI users on the status of program Key Performance Indicators (KPIs) and phase gate review milestones. NPI identifies these issues and recommends remedial action before production decisions are made, ultimately saving time, money and frustration during the new product introduction process.
LevaData NPI also integrates with other software tools used by teams outside of the NPI process, including popular product design and product lifecycle management (PLM) solutions. The NPI solution enables cross-functional collaboration across product operations, supply chain, finance, and procurement to serve as a “single source of truth” for rolled-up cost, design changes and project status across the enterprise. In addition to enhanced communication, the NPI module helps automate manual processes, facilitates scalable BOM ingestion and onboarding of new suppliers, and reduces analysis time by generating thorough reports on the part, product or commodity level.
“We understand that launch teams work under tight time and cost deadlines and that they’re constantly pressured to scale productivity and improve collaboration across functions,” said Rajesh Kalidindi, CEO of LevaData. “We’re excited about our new NPI solution because it represents an industry-first approach to address critical margin and risk considerations prior to release to manufacturing. NPI delivers a powerful competitive advantage to manufacturers because it offers real supply chain insights during the product design and development stage – not after the fact. The results include greater savings and efficiency throughout the entire product lifecycle.”
NPI to Debut at Gartner’s 2019 Supply Chain Executive (SCE) Conference
NPI will make its industry debut at the Gartner Supply Chain Executive Conference 2019, being held in Phoenix May 13-16, 2019. LevaData will demonstrate the capabilities of the NPI module at Booth #100 at SCE, which is one of the supply chain sector’s largest and most significant events. SCE will focus on the convergence of the physical and digital supply chains and feature a track dedicated to sourcing and procurement. LevaData is a Silver event sponsor, and LevaData executives and solution specialists will be on hand to share knowledge with industry peers.