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Omron

Connecting People Through Data: How Omron Turns Tacit Knowledge Into a Shared Asset

Four hands fitting puzzle pieces together beside the Explorer graphic titled Supplier Onboarding, a process often overlooked but crucial to competitiveness

Supplier onboarding is an indispensable process in the manufacturing sector. A meticulously designed onboarding process ensures that suppliers are perfectly in sync with a company’s standards for compliance, quality, and operations right from the beginning.This alignment is crucial for accelerating product delivery to market, elevating product quality, and enhancing the company’s ability to swiftly adapt to changes in market demands. A case in point is a multinational corporation that transformed its supplier onboarding process, incorporating stringent compliance verifications and performance metrics. This overhaul not only expedited the incorporation of new suppliers but also boosted production efficiency by 30% and slashed compliance-related issues by 40%, underscoring the critical advantages of a well-structured supplier onboarding program.

Without an effective supplier onboarding strategy, manufacturers expose themselves to escalated risks and disruptions that can result in significant financial losses and erode their market position and competitiveness in the medium to long term.Neglecting thorough supplier onboarding can lead to a cascade of adverse effects, including diminished production efficiency and compromised product quality. Moreover, the time and effort invested in supplier development end up being wasted. Such oversights can culminate in costly delays, legal penalties, limited collaboration with suppliers, and low retention rate of suppliers. As a result, the performance of quality, cost, and delivery gradually deteriorates without realizing that.

Here are the specific steps to successfully execute supplier onboarding.<h3 class="">1. Setting Criteria and Metrics to Measure the Progress of Onboarding</h3>Integrating specific criteria and metrics like on-time delivery rate, acknowledgment rate, and responsiveness into supplier onboarding processes is crucial for aligning with business goals, assessing supplier performance, and fostering beneficial relationships.Utilizing supplier scorecards effectively tracks these metrics, aiding in vendor management, enhancing communication, and facilitating data-driven decisions to optimize the supplier onboarding process.<h3 class="">2. Clear Communication of Expectations and Requirements</h3>Successful onboarding starts with clear communication. Manufacturers need to articulate their expectations, quality standards, delivery schedules, and compliance requirements. This step often includes providing detailed documentation and guidelines to the suppliers.To ensure that initial communication from buyers to suppliers does not vary, the content and method of explanation should be standardized. Of course, what needs to be communicated will change depending on the item, so it would be wise to categorize items within some framework and then standardize the content of explanations by category.<h3 class="">3. Streamlined Documentation and Data Management</h3>Collecting and managing critical supplier documents, such as contracts, tax information, and certification of compliance, is essential. Utilizing digital solutions for document management can greatly enhance efficiency and reduce errors.<h3 class="">4. Integration into Procurement and Operational Systems</h3>Suppliers should be integrated into the manufacturer’s procurement and operational systems, including order management, inventory systems, and payment processes. This integration is crucial for seamless transactions and real-time tracking.<h3 class="">5. Compliance and Quality Assurance Checks</h3>Implementing rigorous compliance and quality checks during the onboarding process is critical. This might include site visits, sample product evaluations, and validation of compliance with relevant regulations and standards.<h3 class="">6. Training and Development</h3>Providing training to suppliers on the company’s processes, systems, and expectations is crucial for a smooth partnership. This might include training on using the company’s procurement platform, quality standards, and reporting requirements.<h3 class="">7. Continuous Performance Monitoring and Feedback</h3>Effective onboarding doesn’t end with the initial setup. Continuous monitoring of supplier performance and providing regular feedback are vital for maintaining high standards and fostering improvement.<a href="/en-us/resources/insights/supplier-evaluation/" rel="noopener noreferrer">Evaluating suppliers</a> through the production of sample items or a limited range of products is common and essential. However, it is questionable whether assessing suppliers based solely on the finished product is sufficient. They might have submitted a few of their best products after numerous failed attempts. Therefore, it is recommended not just to focus on the results but also to monitor alongside the production process.<h3 class="">Considerations Throughout the Entire Process</h3>One important point to note here is that new suppliers often do not know what they do not understand. Therefore, even if you ask suppliers if they have any questions, they might not ask anything because they don’t know what they should be asking. At this stage, the lack of questions could indicate not that the suppliers understand everything sufficiently, but rather that they might not understand much at all.Also, what is considered common knowledge on the buyer’s side may not necessarily be so for new suppliers. buyers should not assume that “they must naturally know this, so there’s no need to include it in explanations or training.” Skipping explanations could lead to problems later on. Even if it takes more time, the onboarding process should comprehensively cover basic assumptions and finer details.

The process of integrating new suppliers into an organization’s operations, despite technological advances, faces several challenges. Here’s how companies are navigating these issues to improve efficiency and supplier relationships.<h3>Data Quality and Standardization Issues</h3>Challenge: Companies often struggle with poor data quality and a lack of standardization across departments, complicating the onboarding process.Solution: Implementing supplier portals offers a centralized platform for data entry and access, which enhances data accuracy and consistency. This approach simplifies the integration of new suppliers, ensuring that data quality issues do not hinder the onboarding process. Sharing failure cases and lessons learned in supplier onboarding is also an effective approach.<h3>Compliance Management Across Global Supply Chains</h3>Challenge: Managing compliance across global supply chains is a daunting task, made more complex by varying international standards and regulations.Solution: Standardized procedures and checklists ensure compliance requirements are met consistently across all regions. This method reduces the risk of compliance-related issues and streamlines the onboarding process for suppliers from different parts of the world.<h3>Communication Barriers</h3>Challenge: Internal and external communication barriers can lead to delays and inefficiencies in the onboarding process.Solution: Technology solutions that facilitate real-time communication and collaboration are critical. For instance, cloud-based vendor management systems enable stakeholders to update and collaborate in real time, significantly reducing onboarding time and improving supplier performance metrics.

<a href="https://caddi.com/en-us/platform/caddi-explorer/" rel="noopener noreferrer" target="_blank">Explorer</a> is not a supplier management system, but it is one of the solutions for these challenges. It automatically links and aggregates design data, procurement data, and supplier information for each drawing, makes them searchable, and can also produce outputs tied to the drawings.<h3>Similarity search of part drawings</h3>The similarity search feature allows for the instant identification of items similar in type or shape to those being considered for reverse auctions from a vast collection of drawings. This feature allows for the tracking of performance and past issues of existing suppliers in the production of parts similar to those being ordered from new suppliers.<img src="https://cdn.builder.io/o/assets%2F209ee507cedf4c298e100edae4bba2df%2Fe494e46d22a14f31b9395656b347e6e1?alt=media&amp;token=c125ebe8-f6c9-4f6f-9a4f-66ebcbd1b4f4&amp;apiKey=209ee507cedf4c298e100edae4bba2df" alt="CADDi Drawer screenshot: a keyword search for &#x27;bearing&#x27; shows a selected part drawing with its basic info beside a panel of similar drawings listing material, customer, size, purchase order, quantity and price"><h3>Streamline activities in the procurement process</h3>The following features enable you to streamline the time-consuming tasks of data collection and organization in procurement operations. They serve as support for monitoring the progress of supplier onboarding.<ul><li>Price data and supplier information can be automatically linked to each drawing and can also be exported together.</li><li>By using keyword searches combined with similarity searches, the time spent searching for drawings and data in procurement tasks can be reduced.</li></ul><img src="https://cdn.builder.io/o/assets%2F209ee507cedf4c298e100edae4bba2df%2Fa82558f0b3d64649963a3904e7d2aa8e?alt=media&amp;token=c571c8a5-8480-43c3-9af7-f6921f1b0851&amp;apiKey=209ee507cedf4c298e100edae4bba2df" alt="CADDi Drawer screenshot: keyword search for &#x27;bearing&#x27; opens an engineering drawing of a flanged bearing part, with the Basic info panel listing drawing ID, serial number, drawing number, surface treatment, material, customer, and part name, plus Purchase Orders showing the purchase order company, sales price, quantity, and price.">

Procurement 101: Supplier Onboarding – A process often overlooked but crucial to competitiveness

Explorer cover graphic: an open hand holding a cluster of glowing upward arrows, with the Procurement 101 series label

<h3>Identifying Potential Suppliers</h3>The first step in building a robust supplier network is casting a wide net to identify potential partners. But where do you start? Trade shows and industry events provide excellent opportunities to meet suppliers face-to-face, showcase your company’s needs, and gauge their capabilities firsthand.<ul><li>Attend relevant conferences and exhibitions</li><li>Engage in networking sessions and supplier meetups</li><li>Showcase your company’s requirements and values</li></ul>In addition to traditional networking, the digital realm offers a <a href="https://us.caddi.com/resources/category/insights" rel="noopener noreferrer" target="_blank">wealth of resources</a> for supplier discovery. Online directories, marketplaces, and industry-specific platforms can help you connect with a diverse range of suppliers from around the globe.<ul><li>Utilize online supplier directories and databases</li><li>Explore B2B marketplaces and e-sourcing platforms</li><li>Leverage social media to identify and engage with potential suppliers</li></ul><h3>Evaluating Supplier Candidates</h3>Once you’ve identified a pool of potential suppliers, the next challenge is separating the wheat from the chaff. How do you determine which suppliers have the right mix of capabilities, quality standards, and business practices to meet your needs?A thorough evaluation process is key to making informed decisions and mitigating risk. Consider factors such as:<ul><li>Technical expertise and production capabilities</li><li>Quality control processes and certifications</li><li>Financial stability and growth potential</li><li>Alignment with your company’s values and culture</li></ul>By conducting a comprehensive assessment of each supplier candidate, you can build a shortlist of partners who have the potential to drive your business forward.&gt; Tip: Don’t underestimate the importance of cultural fit. A supplier who shares your company’s values and vision can be a valuable long-term partner.*

In the world of supplier development, technology is not just a <a href="https://us.caddi.com/resources/insights/procurement-analytics-tools-2024" rel="noopener noreferrer" target="_blank">helpful tool</a> – it’s a game-changer. Just as a conductor uses a baton to orchestrate a symphony, you can use digital solutions to harmonize your supplier relationships and keep your supply chain running smoothly.<h3>Centralized Supplier Database</h3>Imagine having all your supplier information at your fingertips, accessible with just a few clicks. A centralized supplier database is the foundation of effective supplier management in the digital age.<ul><li>Consolidate supplier profiles, contracts, and performance metrics</li><li>Ensure data accuracy and consistency across your organization</li><li>Enable seamless information sharing among internal stakeholders</li></ul>By maintaining a single source of truth for supplier data, you can streamline communication, reduce errors, and make informed decisions based on real-time insights.&gt; Fun Fact: Did you know that companies with a centralized supplier database can reduce their supplier search time by up to 75%?<h3>Digital Communication Channels</h3>Gone are the days of endless email chains and missed phone calls. Today’s digital communication tools allow you to collaborate with suppliers in real-time, no matter where they are in the world.<ul><li>Utilize video conferencing for face-to-face meetings and presentations</li><li>Leverage instant messaging and chat platforms for quick updates and problem-solving</li><li>Implement collaborative project management tools to keep everyone on the same page</li></ul>By embracing digital communication channels, you can foster stronger relationships with your suppliers, improve transparency, and respond to challenges more efficiently.&gt; Pro Tip: Establish clear communication protocols and guidelines to ensure that everyone is on the same page and using digital tools effectively.So, embrace the digital revolution and watch your supplier relationships thrive!

In the dance of supplier development, the buyer must take the lead. One of the most powerful ways to set the tone for a successful partnership is through a well-crafted supplier presentation.<h3>Showcasing Your Company’s Value Proposition</h3>Think of your supplier presentation as a golden opportunity to sell your company’s vision and values. Just as a master salesperson tailors their pitch to the customer, you must adapt your message to resonate with your suppliers.<ul><li>Highlight your company’s unique strengths and competitive advantages</li><li>Demonstrate how your business objectives align with the supplier’s goals</li><li>Emphasize the potential for long-term, mutually beneficial growth</li></ul>By articulating your value proposition clearly and compellingly, you can attract top-tier suppliers who share your passion for excellence.&gt; Fun Fact: Studies show that companies with a strong value proposition can increase supplier retention rates by up to 30%.<h3>Preparing Effective Presentation Materials</h3>A picture is worth a thousand words, and a well-designed presentation is worth its weight in gold. To create a lasting impact on your suppliers, your presentation materials must be engaging, informative, and visually appealing.<ul><li>Keep text concise and focus on key messages</li><li>Use high-quality images and graphics to illustrate your points</li><li>Incorporate interactive elements to keep your audience engaged</li></ul>Remember, your presentation is not just a collection of slides – it’s a reflection of your company’s brand and professionalism.&gt; Pro Tip: Practice your presentation delivery beforehand to ensure a smooth and confident performance.<h3>Delivering Impactful Presentations</h3>When the curtain rises, it’s showtime! Your supplier presentation is your chance to shine and leave a lasting impression on your audience.<ul><li>Begin with a strong opening that grabs attention and sets the tone</li><li>Use storytelling techniques to make your message more memorable</li><li>Encourage interaction and dialogue throughout the presentation</li></ul>By delivering a powerful and engaging presentation, you can build trust, establish credibility, and lay the foundation for a successful supplier partnership.&gt; Did You Know? According to a recent survey, 70% of suppliers say that a buyer’s presentation skills are a key factor in their decision to work with them.As you prepare to take the stage, remember that your supplier presentation is not just a formality – it’s a strategic tool for driving business success. By showcasing your company’s value, creating compelling materials, and delivering with impact, you can win the hearts and minds of your suppliers and set the stage for a bright future together.

In the ever-evolving world of manufacturing, success is not a destination – it’s a journey of continuous improvement. Just as a garden requires constant nurturing to thrive, your supplier relationships need ongoing attention and development.<h3 class="">Regular Performance Reviews</h3>Think of performance reviews as a health check-up for your supplier partnerships. By regularly assessing your suppliers’ performance against established metrics, you can identify areas of strength and opportunities for growth.<ul class=""><li class="">Set clear, measurable KPIs that align with your business objectives</li><li class="">Conduct periodic evaluations to track progress and identify trends</li><li class="">Provide constructive feedback and recognize outstanding performance</li></ul>By approaching performance reviews as a collaborative process, you can foster a culture of accountability, learning, and continuous improvement.&gt; Fun Fact: Companies that conduct regular <a href="/en-us/resources/insights/supplier-evaluation/" rel="noopener noreferrer">supplier performance reviews</a> can see up to a 20% increase in supplier performance.<h3 class="">Supplier Onboarding</h3>First impressions matter, and your <a href="https://caddi.com/en-us/resources/insights/supplier-onboarding/" rel="noopener noreferrer" target="_blank" class="">supplier onboarding</a> process sets the tone for the entire partnership. Just as a warm welcome makes a new employee feel valued, a well-designed onboarding program can help your suppliers hit the ground running.<ul class=""><li class="">Develop a comprehensive onboarding checklist and timeline</li><li class="">Assign dedicated onboarding teams to guide suppliers through the process</li><li class="">Provide clear documentation and training on your company’s policies, procedures, and expectations</li></ul>By investing in a smooth and efficient onboarding process, you can reduce ramp-up time, minimize errors, and build strong, long-lasting relationships with your suppliers.&gt; Pro Tip: Leverage digital onboarding tools and automation to streamline the process and ensure consistency across all supplier partnerships.<h3 class="">Collaborative Innovation</h3>In today’s fast-paced market, innovation is not a luxury – it’s a necessity. By collaborating with your suppliers to drive innovation, you can stay ahead of the curve and create a competitive advantage.<ul class=""><li class="">Engage suppliers in joint problem-solving and ideation sessions</li><li class="">Encourage suppliers to share their expertise and insights</li><li class="">Foster a culture of experimentation and calculated risk-taking</li></ul>By tapping into the collective knowledge and creativity of your supplier network, you can unlock new opportunities for growth and differentiation.&gt; Did You Know? According to a recent study, companies that engage in collaborative innovation with their suppliers can achieve up to a 15% reduction in time-to-market for new products.As you cultivate your supplier relationships, remember that the journey of continuous development never ends. By regularly assessing performance, investing in effective onboarding, and driving collaborative innovation, you can build a supply chain that is not just strong – but unstoppable.

In the dynamic world of manufacturing, supplier development is not just a strategy – it’s a mindset. By leveraging the power of technology, crafting compelling presentations, and fostering continuous improvement, you can build a supply chain that is resilient, agile, and poised for success.Remember, the journey of supplier development is not a sprint, but a marathon. With dedication, collaboration, and a relentless pursuit of excellence, you can unlock the full potential of your supplier partnerships and drive your business to new heights. So, embrace the challenges, seize the opportunities, and lead your supply chain into a brighter future.

Procurement 101: Supplier Development – Practical Guide to Leveraging Technology

Explorer cover graphic for the Supplier Selection guide, with robotic arms welding car bodies on an automotive assembly line

Supplier selection is a critical process that can make or break your supply chain. Just like choosing the right ingredients for a recipe, selecting the right suppliers is essential for ensuring the quality, reliability, and cost-effectiveness of your products or services. Here are the key steps and factors to consider when selecting suppliers:Basic Steps of Supplier Selection are:<ol><li>Define your requirements: Clearly outline what you need from a supplier, including product specifications, quantities, delivery timelines, and quality standards.</li><li>Identify potential suppliers: Research and create a list of suppliers that meet your basic criteria, such as industry expertise, location, and size.</li><li>Request for information (RFI): Reach out to potential suppliers with an RFI to gather more details about their capabilities, experience, and pricing.</li><li>Evaluate and shortlist suppliers: Assess the responses from suppliers based on your criteria and create a shortlist of the most promising candidates.</li><li><a href="https://caddi.com/en-us/resources/insights/request-for-quotation/" rel="noopener noreferrer" target="_blank">Request for quotation</a> (RFQ): Send a detailed RFQ to shortlisted suppliers to get specific proposals or bids for your project.</li><li>Negotiate and select suppliers: Evaluate the proposals, negotiate terms and conditions, and select the supplier(s) that best meet your needs.</li><li>Contract and onboard suppliers: Finalize contracts with selected suppliers and onboard them into your supply chain processes.</li></ol>

1. Clear and comprehensive requirements: The foundation of successful supplier selection is a clear understanding of what you need. Be specific and detailed in your requirements to avoid misunderstandings or misaligned expectations. Ensure that the supplier’s quotation reflects all the requested conditions, especially if the purchasing conditions were difficult to formulate.2. Rigorous evaluation criteria: Establish a set of objective criteria to <a href="/en-us/resources/insights/supplier-evaluation/" rel="noopener noreferrer">evaluate suppliers</a>, such as quality, cost, delivery, innovation, and sustainability. Use a weighted scoring system to prioritize the factors that matter most to your business. Confirm the supplier’s ability to meet these criteria and their compatibility with the quotation conditions.3. QCD balance: Supplier selection should be based on the balance of QCD (Quality, Cost, and Delivery). While cost is an important factor, it is closely tied to quality and delivery time. If a significantly low (or high) quotation is submitted, investigate the reasons behind the price difference and assess the compatibility with the ordering conditions.4. Due diligence and continuous negotiation: Conduct thorough due diligence, including financial checks, references, site visits, and sample testing, to verify suppliers’ claims and capabilities. If multiple suppliers offer the same price, continue price negotiations to secure more favorable prices. However, ensure that the selected supplier is the most compatible with the provided conditions.5. Alignment with business strategy: Select suppliers that align with your overall business strategy and values. Consider factors such as innovation, sustainability, and social responsibility, which can impact your brand reputation and long-term success.6. Relationship building: Supplier selection is not just a one-time transaction, but the beginning of a long-term relationship. Choose suppliers that are willing to collaborate, communicate openly, and continuously improve. Leverage the timing of supplier selection to extract the most concessions from suppliers.7. Risk management and root cause investigation: Assess and mitigate potential risks associated with each supplier, such as financial stability, intellectual property, and supply chain disruptions. Have contingency plans in place to manage any issues that may arise. If an attractively low quotation is submitted, investigate the reasons behind it and assess the risks. In some cases, it may be necessary to select a higher-priced supplier based on the overall balance.8. Accountability for selection rationale: The procurement and purchasing department must comprehensively evaluate the feasibility of the provided purchase specifications and determine the supplier to place the order with. Supplier selection is the most important decision made by the buyer. A competent buyer should be able to clearly explain the reasons for selecting a particular supplier, demonstrating the chosen supplier’s compliance with the conditions provided by internal related departments, including Quality and Delivery compatibility.By considering these key factors and following a thorough supplier selection process, manufacturers can build strong, resilient supply chains that contribute to their long-term success. Remember, the cheapest option is not always the best, and a comprehensive evaluation of QCD balance, compatibility with requirements, and risk management is crucial in making the right supplier choice.

Supplier selection often faces common pitfalls, including:<ul><li>Over-emphasizing cost savings while neglecting quality and reliability</li><li>Lack of comprehensive vendor data for informed decision-making</li><li>Insufficient collaboration among stakeholders, leading to misaligned priorities</li><li>Inadequate risk assessment and monitoring of supplier performance</li><li>Time-consuming manual processes prone to human error</li></ul>To address these challenges, digitizing the supplier selection process has become essential. Digital platforms enable the collection and analysis of extensive vendor data, facilitating data-driven decisions based on multiple criteria.They foster collaboration and transparency among stakeholders, ensuring alignment on supplier requirements. Real-time risk monitoring and performance tracking help proactively mitigate potential issues. Furthermore, digital tools automate manual tasks, reducing time and errors.

Imagine you’re the procurement manager at ABC Manufacturing, a company that produces high-precision components for the automotive industry. You’ve been tasked with digitalizing and streamlining the supplier selection process to improve efficiency, reduce costs, and mitigate risks. Here’s a step-by-step guide to help you achieve this goal:<h3>1: Define Your Requirements and Criteria</h3><ul><li>Clearly outline your sourcing requirements, including product specifications, quality standards, delivery timelines, and target costs</li><li>Establish a set of objective criteria for evaluating suppliers, such as financial stability, production capacity, technical capabilities, and sustainability practices</li><li>Assign weights to each criterion based on their importance to your business objectives</li></ul><h3>2: Implement a Supplier Relationship Management (SRM) System</h3><ul><li>Invest in a cloud-based SRM system, such as SAP Ariba, Oracle Supplier Management, or Coupa, to centralize supplier data and automate key processes</li><li>Migrate your existing supplier data into the SRM system, ensuring data accuracy and completeness</li><li>Configure the system to align with your defined requirements and criteria, including custom fields and workflows</li></ul><h3>3: Digitalize the RFQ Processes</h3><ul><li>Create digital RFQ templates within your SRM system, incorporating your predefined requirements and criteria</li><li>Utilize the system’s collaboration features to involve cross-functional stakeholders in the RFQ development process</li><li>Launch the RFQ through the SRM system, leveraging its supplier portal and communication tools to streamline the process</li></ul><h3>4: Conduct Digital Supplier Audits and Assessments</h3><ul><li>Utilize your SRM system’s survey and assessment features to conduct digital supplier audits and performance evaluations</li><li>Develop a set of standardized questions and criteria to assess supplier capabilities, quality management systems, and continuous improvement initiatives</li><li>Conduct online audit meetings with suppliers and online factory tours to assess supplier capability, facilities and production processes remotely through video conferencing tools</li><li>Analyze supplier responses and performance data within the SRM system, using built-in analytics and reporting tools</li></ul><h3>5: Make Data-Driven Supplier Decisions</h3><ul><li>Utilize your SRM system’s decision support tools, such as weighted scoring and scenario analysis, to objectively evaluate suppliers based on your predefined criteria</li><li>Collaborate with cross-functional stakeholders through the system’s workflow and approval features to ensure alignment and buy-in</li><li>Communicate supplier decisions and feedback through the SRM system’s supplier portal, fostering transparency and trust</li></ul>By following these steps and leveraging the right digital tools, ABC Manufacturing can transform its supplier selection process from a manual, time-consuming endeavor to a streamlined, data-driven, and risk-aware process. The key is to embrace digitalization not as a one-time project but as a continuous journey of improvement and innovation, ultimately leading to stronger supplier relationships and a more resilient supply chain.

As you digitalize your supplier selection process, consider leveraging <a href="https://caddi.com/en-us/platform/caddi-explorer/" rel="noopener noreferrer" target="_blank">Explorer</a> to make data-driven decisions. Here’s how it can help:<h3>Uncover Hidden Opportunities</h3><ul><li>Utilize similarity search to identify part categories for consolidation</li><li>Automatically link price and supplier data to drawings</li></ul><img src="https://cdn.builder.io/o/assets%2F209ee507cedf4c298e100edae4bba2df%2F5f985be6596c4eb3bb62214b37e12010?alt=media&amp;token=8402e27d-99d5-4754-8115-8049a13b222a&amp;apiKey=209ee507cedf4c298e100edae4bba2df" alt="Screenshot of the CADDi Drawer interface after a keyword search for &quot;bearing&quot;, showing a selected bearing drawing with its basic info beside similar drawings listing material, customer, part name, purchase orders, quantity, and price."><h3>Streamline Procurement Tasks</h3><ul><li>Reduce time spent searching for drawings and data</li><li>Export price and supplier information with ease</li></ul><img src="https://cdn.builder.io/o/assets%2F209ee507cedf4c298e100edae4bba2df%2F3479cebea0474c02bb27ffb59c591c60?alt=media&amp;token=e2272fa4-9b8c-4ea1-8678-b68c38d4974a&amp;apiKey=209ee507cedf4c298e100edae4bba2df" alt="CADDi Drawer screenshot of a keyword search for bearing showing a technical drawing with dimensions and a side panel of drawing details, material, customer and purchase order data"><h3>Learn from Industry Leaders</h3><ul><li><a href="https://caddi.com/en-us/drawer/case-studies/kawasaki-railcar-manufacturing" rel="noopener noreferrer" target="_blank">Kawasaki Railcar Manufacturing: Achieved unexpected cost reductions</a></li><li><a href="https://caddi.com/en-us/drawer/case-studies/ebara/" rel="noopener noreferrer" target="_blank">Ebara Corporation: Leveraged buried data for optimal procurement</a></li></ul>Explorer acts as a digital magnifying glass, revealing insights within your drawings and purchasing data. It’s like having a smart assistant and librarian combined, helping you uncover patterns and locate information quickly.Don’t just take our word for it – industry leaders are already harnessing the power of Explorer to drive their strategic sourcing initiatives.

Procurement 101: Supplier Selection – Practical Guide to Leveraging Digitalization

A hand stopping a row of falling wooden dominoes, tinted blue

Supplier management is imperative for procurement departments to ensure the stable supply of quality products. The practice involves evaluating suppliers based on their ability to meet the buyer company’s requirements, including product specifications and quality standards. This process is critical as it helps distinguish and manage suppliers effectively, ensuring they can continually meet these demands.We’d like to emphasize the need for a structured approach to supplier management, which involves assessing suppliers based on predefined criteria, supporting their ability to deliver as required, and maintaining a mechanism that ensures consistent output despite environmental changes.However, purchasing conditions, such as product specifications and quality standards, vary from company to company. Consequently, the specifics of managing suppliers differ in practice too. In supplier management, it’s essential to aseess suppliers based on your company’s unique criteria.

Accurate information gathering is the foundation of effective supplier management. This entails collecting basic information from suppliers, including:<ul><li>Company websites</li><li>Product brochures</li><li>Registration documents</li><li>Financial statements</li><li>Certifications</li></ul>Buyer companies must gather more detailed information from suppliers through designated supplier questionnaire forms for suppliers to understand:<ul><li>Manufacturing capabilitiesProportion of products manufactured and industries servedProduction breakdown by material and component typeLimits on quantity, size, and thickness that can be accommodated, etc.</li><li>Equipment</li><li>Production capacity</li><li>Staffing structure and organization charts</li></ul>Obtaining data on supplier performance, such as defect rates and on-time delivery rates, is essential for ongoing management and improvement efforts. Additionally, it is also essential to identify key personnel within the supplier who have influence over decision-making through daily interactions.

Once information is gathered, it must be used to assess suppliers against consistent criteria. This assessment helps in making informed decisions about supplier selection and management.The criteria for assessment include quality performance, cost performance, and on-time delivery performance, alongside the supplier’s management capabilities to maintain these standards. Transparent and objective assessment criteria are must-haves to avoid biased assessments and ensure that evaluations are grounded in factual and comparable data.The <a href="/en-us/resources/insights/supplier-evaluation/" rel="noopener noreferrer">evaluation criteria</a> should be revisited and adjusted based on strategic business needs and external factors, such as market changes or shifts in management focus, to align supplier management practices with overall business objectives.

Procurement departments leverage outcomes from supplier assessment as foundational data for shaping purchasing policies. By quantifying these evaluations, companies can discern supplier tendencies and characteristics, aiding in the formulation of purchasing strategies that exploit suppliers’ strengths.This method involves categorizing suppliers into similar groups for comparison, often visualized through radar charts to facilitate decision-making.It is also often observed in the industry that the assessment of suppliers is thoroughly conducted only at the time of initial registration, and subsequent evaluations tend to be neglected.However, conducting regular assessments at the same level as the initial one is essential to fully grasp both positive and negative changes, such as the expansion of the supplier’s capabilities or the departure of key personnel. It ensures that decisions regarding orders or strategic directions are based on up-to-date assessments, underscoring the importance of integrating evaluation results into the broader purchasing framework.

Upon assessing suppliers, they should be categorized based on the nature of purchased goods, enabling procurement departments to tailor their approach for each category.Indispensable Suppliers for Current Business Operations: These are suppliers who account for a significant portion of total purchases. They are not just suppliers; they are integral partners in our journey, ensuring the wheels of our operations keep turning smoothly.Suppliers Essential for Future Business Operations: Not judged merely on current purchasing volume, these suppliers are vital for their potential in collaborative development and prototype orders leveraging technologies needed for the future. They stand out not only for the products they supply but also for the technological support they provide, making them key players in our journey towards innovation and growth.Suppliers Without Alternative Sources: These are suppliers for whom, at the time of evaluation, no alternative purchasing sources exist within the buying company. A halt in their supply could pose existential threats to the buyer’s business. At the same time, these suppliers are challenging to influence due to their unique position, making them critical yet delicate links in our supply chain.Suppliers meeting any of these criteria are deemed crucial and are managed with a focus on fostering long-term, strategic partnerships. This nuanced categorization allows for more focused and effective supplier relationships, ensuring that procurement efforts align closely with the company’s strategic needs and risk management practices.

The management of suppliers varies significantly across different categories.For indispensable suppliers, the approach is collaborative, sharing both short-term and long-term outlooks to secure prioritized treatment. It is essential to clearly communicate to them their status as key suppliers and to tighten the communication between the top executives of both the procurement and purchasing departments and the suppliers’ sales departments to ensure the exchange of intentions. Information provision from the procurement side should be conducted in a manner and with content that distinguishes it from that of general suppliers, aiming to build a strategic relationship. Organizing exclusive supplier meetings could also be an effective strategy.It’s common practice to rank suppliers primarily based on the magnitude of past purchases as described above. However, a supplier who was important in the past may not necessarily remain ‘important’ in the future. Instead, continuous management efforts are required on the procurement side to ensure this importance persists. It’s essential to consider actual performance and future needs, provide feedback to suppliers, and foster a sense of urgency. This approach is crucial for maintaining a dynamic and resilient supply chain that adapts to changing business landscapes.In contrast, general suppliers, not distinguished as critical, receive standard communication about procurement needs without the strategic engagement reserved for key suppliers. However, even among general suppliers, vigilance is necessary to identify potential future key suppliers, highlighting the dynamic nature of supplier relationships and the importance of adaptability in procurement strategies.

Effective supplier management requires a deep understanding of the supplier’s capabilities in relation to the buyer’s needs. This involves identifying gaps between what the supplier can offer and what the buyer requires, and deciding whether to improve the existing supplier’s performance or to seek alternatives.The core areas for management include quality, cost, delivery, development capabilities, and loyalty. Regular audits are conducted to ensure that suppliers maintain their capabilities over time.When deficiencies are identified, procurement departments must communicate these issues clearly, setting out specific expectations for improvement, and considering whether to provide guidance for improvement or to look for alternative suppliers.

When evaluations indicate that a supplier’s improvement is unlikely, the search for new suppliers begins. This process involves a thorough analysis of why the current supplier relationship failed to meet expectations, focusing on identifying and rectifying the root causes of mismatches.The search for a new supplier involves a comprehensive reassessment of potential suppliers’ capabilities to ensure they can meet the buyer’s requirements without repeating past mistakes. This approach underscores the importance of agility and proactive risk management in procurement strategies, emphasizing the need for a clear understanding of both the buyer’s requirements and the supplier’s ability to meet those needs.

The foundation for building and sustaining good relationships with suppliers is based on mutual understanding and agreement between buyer companies and suppliers. The key to maintaining these relationships lies in small, consistent acts of trust. This includes ensuring that agreements, beyond contractual obligations, are upheld and openly communicating any challenges that might prevent fulfilling these promises.A good relationship is not just about stable interactions but also about improving quality, delivery times, and costs. It requires a continuous effort to monitor and manage the relationship dynamically, ensuring that both parties strive towards maximizing mutual benefits.

The evolution of supplier meetings from a mere formality to a strategic necessity underscores the changing dynamics in procurement. The focus has shifted towards making these meetings meaningful by sharing future business prospects, technological roadmaps, and strategic insights that can aid suppliers in aligning their plans with those of the buyer company.The role of procurement in these meetings is to facilitate discussions, ensuring that communication goes beyond the routine demands for cost reductions and quality improvements to include valuable information that can foster long-term collaborations.

The articles highlight the strategic importance of developing new suppliers when current ones cannot meet the evolving needs of the business and how to gracefully disengage from relationships that no longer serve mutual interests. This involves a careful analysis of supplier capabilities, identifying areas for improvement, and exploring new market opportunities to meet procurement needs. The process is delicate and requires a balanced approach to ensure that transitions are smooth and do not adversely affect the supply chain.

As mentioned above, the utilization of data is indispensable in supplier management. Therefore, not only is the collection of data crucial, but it is also important that this data is in a manageable state. This has become a challenging issue for many companies in the manufacturing industry.The most understandable and critical case is when various pieces of information contained in drawings, such as material specifications and footnotes, are not structured data, and even when they are data, the information is scattered across different items or not easily searchable.To solve this challenge, various tools have been developed, one of which is <a href="https://caddi.com/en-us/platform/caddi-explorer/" rel="noopener noreferrer" target="_blank">Explorer</a>. Explorer:<ul><li>Extracts and structures information contained within a vast number of drawings held company-wide.</li><li>It can then link these data with procurement data, supplier data, and specifications stored in systems like ERP or spreadsheets, each associated with the respective drawings.</li><li>With this data foundation established, it enables keyword searches, searches by tags attached to drawings, or searches for drawings of similar parts based on the similarity of part shapes.</li></ul><img src="https://cdn.builder.io/o/assets%2F209ee507cedf4c298e100edae4bba2df%2Fce85efef4c124a1aa70a82f613db566a?alt=media&amp;token=5d2142b8-905a-4f75-8271-8e1ec460cb66&amp;apiKey=209ee507cedf4c298e100edae4bba2df" alt="CADDi Drawer sample engineering drawing of a shaft with dimensioned side and end views, a small 3D preview, and a title block listing drawing number, part name, material, and delivery date">In supplier management, by linking past purchase price information with supplier performance and the results of supplier assessments, the process can be streamlined. This allows the procurement department to allocate more time to more essential activities, such as building strategic relationships with suppliers and gaining a deeper understanding of supplier capabilities.<img src="https://cdn.builder.io/o/assets%2F209ee507cedf4c298e100edae4bba2df%2F11b01a7948de4323a92d57e7549a5903?alt=media&amp;token=65557e4b-36d4-422a-a4ec-48e2799f1fa8&amp;apiKey=209ee507cedf4c298e100edae4bba2df" alt="Diagram positioning Explorer as a System of Insights that utilizes data and generates value, alongside a System of Records made up of PLM, PMD, Revision Management, CAD, BOM, and ERP">

Procurement 101: Supplier Management – What it is & how to execute it

<a href="/en-us/resources/insights/supplier-evaluation/" rel="noopener noreferrer">Supplier evaluation</a> is the systematic assessment of a supplier's performance and capabilities to ensure they meet a company's needs and expectations. Robust evaluation minimizes hazards like compromised quality, missed deliveries, and higher prices, while also uncovering opportunities for improving supplier relationships and leveraging their capabilities for competitive advantage. This process is crucial at various stages, including initial selection, routine monitoring, contract renewal, and when sourcing new products or services.<h3 class="">Essential Categories for a Comprehensive Supplier Scorecard</h3>A well-designed supplier scorecard typically includes key performance indicators (KPIs) across several vital categories:<ul class=""><li class="">Quality: This category assesses a supplier's ability to consistently meet specifications. Key metrics include defect rates, instances of customer rejects, and results from supplier quality audits. Maintaining consistent product quality across a diverse supplier base is a persistent challenge, as variability directly impacts the final product and brand reputation.</li><li class="">Cost: Beyond just unit price, a comprehensive scorecard considers the total cost analysis, including logistics and quality, and tracks the supplier's cost reduction performance. Evaluating a supplier's cost competitiveness is challenging without a clear baseline, as a seemingly cheap supplier might be overcharging for specific parts.</li><li class="">Delivery: This measures a supplier's reliability in meeting timelines. Important KPIs are on-time delivery percentages, lead time (time from order to delivery), and their ability to mitigate supply chain disruptions. Delays can significantly impact production schedules.</li><li class="">Responsiveness and Collaboration: This focuses on the ease and effectiveness of communication and partnership. Metrics include quote turnaround time, overall communication effectiveness, and the supplier's customization ability. Poor communication can lead to misunderstandings, delays, and strained relationships. Building strong, collaborative relationships is paramount for long-term success.</li><li class="">Financial Stability: Assessing a supplier's financial health ensures their ability to sustain and invest in the business relationship.</li><li class="">Capabilities and Innovation: This evaluates the supplier's technical expertise, their capacity for ongoing innovation, and the resources they dedicate to your business.</li><li class="">Compliance: This includes adherence to regulatory standards (e.g., ISO certifications), contractual terms and conditions, and alignment with ethical practices. Failure to verify compliance can expose organizations to significant legal and financial liabilities.</li><li class="">Location and component sourcing: As tariffs cause price discrepancies from suppliers from different countries, understanding where your supplier is located, and where they source component materials from, is necessary to anticipate price shifts. </li></ul>Organizations typically use methods like scorecards, site visits, and surveys to evaluate suppliers. Prioritizing criteria using a weighted scoring system can help quantify and objectively compare suppliers based on your specific needs and goals.<h3 class="">Implementing and Managing Performance</h3>Effective supplier scorecard implementation involves forming a cross-functional review team to gather data from various sources. It's crucial to provide structured feedback to suppliers, highlighting both strengths and areas for improvement, and to set clear corrective actions or improvement plans where needed. Offering incentives and recognition to top-performing suppliers can further motivate them to excel. This proactive management strengthens relationships and ensures both parties are aligned on priorities and continuous improvement.<h3 class="">Challenges in Traditional Supplier Scorecarding</h3>Despite the clear benefits, traditional methods of building and leveraging supplier scorecards face significant challenges:<ul class=""><li class="">Data Silos and Inconsistency: Critical data needed for a comprehensive scorecard—such as past purchase orders, quality reports, and design specifications—is often isolated within different departments or systems (e.g., ERP, PLM, spreadsheets), leading to inconsistencies and hindering a unified view.</li><li class="">Lack of Standardization: The absence of standardized data formats and documentation can complicate information sharing and make objective comparisons difficult.</li><li class="">Subjectivity and Tribal Knowledge: Evaluating a supplier's true "cost competitiveness" is difficult without a clear baseline, often relying on subjective assessments or the undocumented "tribal knowledge" of experienced personnel. This knowledge is vulnerable to loss when experienced employees retire.</li><li class="">Time-Consuming Manual Processes: Manually searching, collecting, and cross-referencing data from disparate sources is incredibly time-consuming, pulling procurement professionals away from more strategic initiatives.</li></ul>

<a href="https://caddi.com/en-us/platform/caddi-explorer/" rel="noopener noreferrer" target="_blank">Explorer</a> offers a cutting-edge solution to overcome these traditional challenges, enabling manufacturers to build more accurate, objective, and actionable supplier scorecards:<ul><li>Digitizes and Structures Unstructured Data: Explorer automatically scans and extracts data from PDF drawings, including handwritten notes and dimensions. This transforms unstructured data into searchable, structured assets, making decades of legacy information instantly accessible.</li><li>Connects Disparate Supply Chain Data: It seamlessly links drawings with relevant supply chain information such as quotations, cost breakdowns, supplier details, quality defect reports, spec sheets, and data from ERP, CAM, and CAD systems. This creates a "single source of truth" that breaks down departmental data silos, providing a holistic view of each part and its associated history.</li><li>Enables Intelligent Search and Comparison: CADDi's patented Similarity Search identifies parts based on their geometric shape, even from a hand-drawn sketch, allowing users to find similar parts across their entire archive, regardless of part numbers or text descriptions. This is complemented by keyword search (by material, size, part name, notes, etc.). This drastically reduces search time—from hours to seconds or minutes—freeing up procurement and engineering teams for higher-value tasks.</li><li>Provides Objective Cost and Quality Insights: For the "Cost" section of a scorecard, CADDi allows procurement managers to compare a supplier's quotes against the historical cost data for geometrically similar parts, providing an objective measure of their competitiveness. This helps in identifying price inconsistencies and negotiating effectively. For "Quality," if a defect is found in one part, CADDi can quickly identify all other parts purchased from that supplier with similar features or materials, enabling proactive quality checks and risk mitigation across the supplier's portfolio.</li><li>Fosters Cross-functional Collaboration: By centralizing and linking data, Explorer enhances collaboration between engineering, procurement, quality, and sales teams. Engineers can leverage past designs for new product development, reducing costs and accelerating time-to-market. Procurement can engage earlier and more effectively with engineering, leading to faster product development.</li></ul>In essence, Explorer transforms the supplier scorecard from a static reporting tool into a dynamic, data-driven instrument for strategic supplier relationship management. By providing deep, objective insights and streamlining data access, it empowers manufacturers to optimize their supplier base, improve quality, reduce costs, and build more resilient and efficient supply chains.<h3>Conclusion</h3>In today's competitive manufacturing environment, a robust supplier scorecard is more than a metric-tracking tool; it's a strategic imperative for building and maintaining strong, mutually beneficial supplier relationships. By moving beyond subjective assessments and leveraging advanced data management solutions like Explorer, manufacturers can gain unprecedented visibility into their supplier performance, drive continuous improvement, and ensure that their supply chain remains agile and resilient in the face of evolving market demands.Ready to see how CADDi can help you make supplying more strategic with data access? Explore our <a href="https://us.caddi.com/product-tour?utm_source=Website-Referral&amp;utm_medium=Website&amp;utm_content=Blog&amp;utm_campaign=&amp;utm_term=" rel="noopener noreferrer" target="_blank">interactive product tour</a> or <a href="https://us.caddi.com/demo-request?utm_source=Website-Referral&amp;utm_medium=Website&amp;utm_content=Demo&amp;utm_campaign=&amp;utm_term=blog" rel="noopener noreferrer" target="_blank">book a personalized demo</a>.

The Supplier Scorecard: A Practical Framework for Evaluating, Managing, and Collaborating with Your Manufacturing Partners

Sumitomo Riko

Improving development speed as global competition accelerates

Shibuya Hoppmann

Shibuya Hoppmann: Strengthening Aftermarket Value with CADDi

Amerequip

Amerequip: From Hunting for Drawings to a True “One-Search” Engineering and Quality Workflow

ProMat 2027

CADDi 2025 Year in Review title graphic over a photo of the CADDi trade show booth with its Connecting Past Parts to Future Profits banner.

2025 marked a milestone for CADDi. We continue to grow as part of a global organization with eight years of steady expansion and a respected track record in Japan, where CADDi is the trusted name in design engineering and manufacturing data excellence. CADDi earned this reputation by consistently delivering on our promise to help manufacturing teams work with more accuracy, speed, and control.&nbsp;Over the past three years, we brought this expertise to the United States and built strong momentum. CADDi is now emerging as a leading technology partner for U.S. manufacturers seeking to strengthen artificial intelligence adoption and data-driven decision-making. Many organizations still face scattered drawings, legacy data, and disconnected systems. CADDi gives them a clear path to improvement and a foundation for future growth.<img src="https://cdn.builder.io/api/v1/image/assets%2F209ee507cedf4c298e100edae4bba2df%2Ff6f50abfe49247e087f57d2944e0ce2c?format=webp" alt="Three smiling men posing at a tall black table in front of window blinds; two wear navy blazers with open-collar shirts and one wears a navy CADDi polo shirt">Leadership starts from the top. Meet CADDi CFO Ryota Haga, CEO Yushiro Kato, and CTO Aki Kobashi

This year we more than doubled our U.S. team size, investing in the right people to elevate every step of the customer journey. Over 30 new employees joined across engineering, customer success, and end-to-end sales operations. This growth expanded our technical capabilities and strengthened our ability to guide customers through onboarding, implementation, and ongoing optimization. Our global team continued to bring deep experience in data and manufacturing engineering. Together, these teams helped customers move forward with fewer bottlenecks and more confidence in their systems and processes.

Customers across the United States reported improvements that directly affected daily work and long-term planning. Teams located drawings faster and onboarded new parts with greater accuracy. They gained better visibility into supplier options, which supported cost and quality goals. Leaders also shared that CADDi helped improve the overall quality of their design and sourcing data. These gains reduced errors and manual effort and helped teams make clearer decisions across engineering and procurement.Some of the exciting findings we’ve gotten from customers in 2025 include:<ul class=""><li class="">A 42% reduction in procurement costs at <a href="https://us.caddi.com/case-studies/dairy-conveyor-corporation" rel="noopener noreferrer" target="_blank" class="">DCC</a></li><li class="">A 90% speed increase in internal searches at <a href="https://us.caddi.com/case-studies/izumi-techno" rel="noopener noreferrer" target="_blank" class="">Izumi Techno</a></li><li class="">An 84% reduction in onboarding time at Daito</li></ul>Explore our <a href="https://us.caddi.com/case-studies" rel="noopener noreferrer" target="_blank" class="">case studies</a> to see more CADDi success stories!<img src="https://cdn.builder.io/api/v1/image/assets%2F209ee507cedf4c298e100edae4bba2df%2F1d089641110e4def98b162cb7081ddce?format=webp" alt="A speaker presents on stage at CADDi UNLEASH 2025 to a large seated audience, with world maps displayed on two screens" class="">CEO Yushiro Kato led presentations at CADDi Connect 2025, our annual event series for manufacturing leaders held in Japan.

We continued building a partner ecosystem to enhance what our platform can do for manufacturing teams. New collaborations added capabilities in artificial intelligence, data automation, and supply chain visibility. This ecosystem approach helps teams get more value from their existing tools and creates smoother workflows across design, sourcing, and operations. It also positions CADDi as a long-term partner for organizations that want to modernize without adding unnecessary complexity.Learn more about our current partnerships, and see if you’d be a good fit for working alongside CADDi, on <a href="https://us.caddi.com/partnerships" rel="noopener noreferrer" target="_blank">our partnership page</a>.

We introduced CADDi Quote to the U.S. market at CADDi Connect. Quote is an AI-powered sourcing solution aimed at revolutionizing the quotation process. During the launch, our CEO, Yushiro Kato, drew parallels between the manufacturing challenges in Japan and the U.S., and emphasized the time to adapt is now. The Quote application helps procurement teams streamline quotation and manage supplier relationships by connecting artificial intelligence with drawing, part, and supplier data. CADDi Quote reduces manual work and strengthens cost analysis by giving teams visibility into the factors that influence price and lead time. This supports faster responses, stronger supplier decisions, and more predictable operations.<img src="https://cdn.builder.io/api/v1/image/assets%2F209ee507cedf4c298e100edae4bba2df%2Fe98392768eec4b6aac3e644ddd9448ac" alt="Three people standing in front of a CADDi trade show booth with a blue backdrop reading AI Data Platform for Manufacturing, an INNOVA Machine Tool balloon overhead">

Manufacturers continue to navigate talent shortages, rising product complexity, and higher expectations for data accuracy. CADDi helped organizations address these challenges by uncovering intelligence hidden in drawings and internal knowledge. This insight strengthened engineering and procurement workflows and supported more reliable planning. Customers selected CADDi because the platform provides structure, visibility, and scale at a time when many teams are working with limited resources.

Our focus for the coming year is to help more professionals and leaders take control of their engineering and procurement data, especially valuable institutional knowledge. We will continue to rethink traditional manufacturing approaches, empowering more people with AI and data intelligence. We will continue expanding our platform, growing our partnerships, and strengthening our U.S. presence. CADDi is committed to helping teams modernize their data foundation, improve decision-making, and build stronger operations.Our commitment to “unleashing the potential of manufacturing” remains unchanged. As a global and growing organization, we stay true to our roots as a Japanese design excellence innovator, guided by foundational values customers have come to expect of CADDi through the years.&nbsp;To our customers, teammates, and partners, thank you for your trust. CADDi enters 2026 ready to support a new era of manufacturing intelligence.

Headquartered in Tokyo, Japan and Chicago, IL, CADDi is an AI-powered data platform that makes design and supply chain data accessible and actionable across the manufacturing ecosystem. Founded in 2017 by industry veterans Yushiro Kato and Aki Kobashi, formerly of McKinsey, Apple, and Lockheed Martin.Its flagship product, <a href="https://caddi.com/en-us/platform/caddi-explorer/" rel="noopener noreferrer" target="_blank">Explorer</a>, uses advanced AI to centralize and analyze decades of unstructured design and production data. The platform transforms disconnected drawings, specs, and supplier files into searchable intelligence, allowing manufacturers to locate information instantly, make data-driven decisions, and accelerate collaboration.By connecting data silos, CADDi helps teams reduce redundancies, shorten lead times, and unlock the innovation potential hidden within their existing data. Recognized globally for innovation, CADDi was listed in Fast Company’s Most Innovative Companies in 2024, and received the SaaS Award for Best Business Intelligence and Engineering Management Software. To learn more or to book a product demonstration, visit <a href="https://us.caddi.com/demo-request?ref=CompanyDescription" rel="noopener noreferrer" target="_blank">us.caddi.com</a>.

CADDi’s Year In Review: Accelerated growth in 2025

CADDi at CONEXPO 2026 promotional card over a photo of an outdoor construction equipment exhibit, reading Our events and plans, Register today and see us there

We’re even more excited to be hosting the best afterparty in town – free drinks, lots of innovative peers to chat with, and a stimulating conversation led by <a href="https://www.linkedin.com/in/greg-toornman-90b9781/" rel="noopener noreferrer" target="_blank">Greg Toornman</a>, former VP at AGCO, all in a beautiful suite at the Bellagio Hotel.‍Spots are going fast, so <a href="https://us.caddi.com/owned-events/youre-invited-happy-hour-with-industry-peers" rel="noopener noreferrer" target="_blank">register today</a>! Note that this is an event focused on executives, so only some invitations will be issued.

We’re making a big presence at CONEXPO for one simple reason: if you’re working in heavy industry, you’ll want to know about us. We’ve made major gains for <a href="https://us.caddi.com/case-studies/kawasaki-railcar-manufacturing" rel="noopener noreferrer" target="_blank" class="">Kawasaki’s division for rail cars and other heavy industry products</a>, Harunomachi Iron Works, and other leading manufacturers.‍When you’re building construction equipment, you’re dealing with the final product of a long and complex component supply chain. Pick any product from your lineup and you’re dealing with a BOM a mile long for every fastener, brace, frame, on and on and on.‍When tariffs, other regulations, or material shortages make one of those components jump up from 50 cents per unit to 75 cents per unit, what does that mean for the production cost of your final product? It’s not a rhetorical question: it’s one you should be able to answer quickly. And if the answer isn’t something you like, maybe “our profit margin gets wiped out entirely”, you’ll need to have a Plan B for another supplier or an alternative design just as quickly.‍That’s where CADDi comes in. We automatically link your BOMs to purchase histories so you can easily project how component price changes will affect your bottom line. And when you need to pivot to other suppliers, our AI analysis will automatically surface the optimal alternatives that can cover the same designs.‍As we head into another construction boom, you want to be the ones selling (steam) shovels. CADDi makes sure your production line stays moving fast, without disruptions or leaps up in cost.‍<a href="https://us.caddi.com/demo-request?utm_source=Website-Referral&amp;utm_medium=Website&amp;utm_content=Demo&amp;utm_campaign=&amp;utm_term=blog" rel="noopener noreferrer" target="_blank" class="">Check out a demo</a> to learn more.

CADDi at CONEXPO 2026

CADDi leverages AI to digitize drawings and procurement data, making manufacturing insights searchable by shape, text, dimensions and part names.