Press Report
In the automotive industry, there are still sticking points with inbound control: a multiplicity of partners all operating different IT systems makes it difficult to swap information. Software for Supply Chain Execution shows the way forward.
(computerworld.ch 03.2008) Controlling cross-company logistics processes at every stage represents a considerable challenge for the automotive industry. Inbound control is just one part of the process but this in itself is a Herculean task: the multiplicity of supply chain partners all operating different IT systems is often an obstacle to the efficient exchange of important information. The lack of transparency that arises from this generates major costs, e.g. from ad hoc reactions to unforeseen events.
In order to optimise inbound control, companies require access to comprehensive information at as early a stage as is feasible. Additionally, there are benefits in automating all tasks that have to do with the recording and supervision of inbound deliveries. Against this background, the German Association of the Automotive Industry (VDA) standardised the so-called 'pickup process' in the sector several years ago with their 'Recommendation 5004'. Up to now, however, there has not yet been a determined effort to automate this process throughout.
Networking of all partners
One possible approach to a solution for the automation of the pickup process can be found in internet-based standard software for Supply Chain Execution. Systems of this kind synchronise the flow of goods and information and make it possible to link all partners into a single network. This particularly concerns the areas of transport and freight cost management that are relevant within the framework of inbound control.
All supply chain partners link their IT systems via standardised interfaces directly to a central information platform or alternatively make use of information gathered and processed there together with any appropriate functionality. This makes it possible to link even small-scale business partners into the information flow.
No need for coordination
Such professional systems are far superior to traditional ERP systems: they automate central tasks within the pickup process. Dispatch and transport planning is simplified for the OEM, as the software solution assumes responsibility for important preliminary tasks in the coordination between suppliers and logistics providers on the basis of supply release order documents. The data generated in the ERP system of the OEM for the supply release order document is communicated to the central logistics platform. This information is then used to automatically generate transport instructions. Using predefined criteria, or on the basis of transport planning, individual jobs can be bundled together as a single route. This means that it is no longer necessary to enter into a time-consuming process of coordination with the suppliers. At the same time, the logistics providers have the opportunity of accessing the OEM's key data at any time via the internet.
The upshot is that system boundaries can be overcome
Internet-based Supply Chain Execution solutions are capable of overcoming boundaries between partners in inbound control. All the signs are that pickup processes are set to be extensively automated. Systems of this kind make the supply chain transparent for all parties involved, give better control over the pickup process and make it possible to plan production with greater confidence.