digital technology


DesignSource™: Product Data Analytics Solution

Improving digital product development through data analytics

Direct materials procurement and management are highly complex. And without effective product data analytics, opportunities to reduce costs and capture hidden value in your digital supply chain may be overlooked. A data analytics solution can help you classify, enrich, and analyze product data to realize opportunities during product lifecycle management (PLM).

DesignSource™: Deloitte’s part data analytics solution

Why you need better data

For many organizations, reducing product complexity comes down to better data and analytics. But many companies lack the time, skills, and resources to get the most out of their direct materials data.

There are other reasons as well:

  • Global product development data often isn’t centralized and is instead stored in separate product lifecycle management (PLM) or enterprise resource planning (ERP) systems.
  • Rationalizing discrepancies across these systems is difficult due to poor and incomplete data and frequently requires manual modification.
  • Different product data management systems can limit component consolidation, making bills of materials (BOM) comparisons more complex and cross-product family analyses more onerous.
  • Part reuse may not be institutionalized.

What’s more, global product and supply chain data often aren’t shared across organizational silos. In fact, different sourcing teams across the enterprise may be negotiating independently with suppliers for direct materials procurement.

The result: The same supplier may be providing similar components with similar specs to multiple buyers in the same organization—often at different prices—without the knowledge of product and sourcing leadership.

DesignSource™ can help.

The DesignSource™ advantage

DesignSource, one of Deloitte’s SupplyPRISM suite of products and solutions, automatically analyzes your data across traditional functional silos to give your teams the data-driven insights they need to make a measurable impact on your organization’s cost of goods (COGS) direct material spend.

Digital product development: From complex to streamlined

Deloitte’s DesignSource is a rigorous analytical tool that delivers product insights to address organizations’ product and sourcing challenges by:

  • Collecting product, design, and operations data from a variety of sources
  • Performing a thorough cleansing and data enrichment analysis
  • Merging BOM data with other enterprise, supplier, digital supply chain, and third-party benchmark data to create a clear picture of cost and complexity reduction opportunities

The DesignSource product data analytics system:

  • Enriches part attribute data from manufacturing part numbers and unstructured sources such as drawings and data sheets
  • Classifies BOMs for reuse and consolidation in a highly secure environment
  • Identifies groups of similarly functioning parts for consolidation and low-cost sourcing
  • Deploys pre-built should-cost modules across thousands of parts, associated categories, and benchmarks
  • Determines cost and benefit of part resourcing or requalification
  • Provides recommendation on design standards and identified preferred parts for reuse

Deloitte named a global leader in Product Development Operations Consulting by ALM

"Deloitte targets its consulting approach at helping clients manage the complexity in their product development operations to increase efficiency, reduce time to market, and improve commercial outcomes."

–ALM Intelligence, Buyer Ratings Guide, March 2018

Improve efficiency while lowering costs

When enabled by robotic process automation (RPA), DesignSource also provides ongoing engineering and design support. This system can select and recommend components that already exist within your company’s portfolio, improving the efficiency of the product development organization, increasing part reuse, and lowering product costs.

Bottom-line benefits from a product lifecycle management solution

DesignSource in action

Clients have realized cost reductions of between 4 percent and 12 percent from consolidation of spend.

An industrial products company identified 6 percent cost savings on $303M in spend based on:

  • Reducing redundancy in the part portfolio by 37 percent
  • Driving out $4M in immediate direct material costs from negotiations
  • Developing a medium to long-term roadmap for product changes and alternate sourcing to achieve another $14M in direct material savings

A life sciences company identified 5 percent or $11.2M in direct material savings achieved through short term price harmonization, consolidated purchasing and improved design standards.

Deloitte’s next-gen solution Product Data X-Ray (DPDx) brings together digital technologies with Deloitte’s unparalleled industry knowledge to help organizations better understand their data, define data migration strategy, and accelerate unstructured data digitization.

How we can help

Our DesignSource solution offers a variety of different models to meet your product development and sourcing needs. We offer one-time portfolio complexity reduction support, merger or divestiture synergy capture, or ongoing subscription models. We have even leveraged DesignSource to fund large-scale ERP and PLM transformation programs that touch the same product and supply chain data.

For more information about our product data analytics system, please contact us.

Get in touch

Vijay Natarajan
Managing Director
Deloitte Consulting LLP
+1 248 894 3558
Branden Bradley
Deloitte Consulting LLP
+1 239 898 4083

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