Press Report

Lean production methods based on the Toyota model could not have succeeded without sophisticated logistics structures. Web-based software solutions for supply chain execution are being used in the automotive supply industry to synchronise the cross-company flow of goods and information between companies. This has resulted in major improvements to the whole transport process.

(Österr. Verkehrszeitung 05.2008) New approaches to production and organisation based on the model of the Toyota production system have become established throughout the vehicle manufacturing industry and its suppliers. The aim is to achieve increased productivity whilst at the same time reducing costs and improving the standard of service. The idea is to produce only those items that the customer will actually purchase. Prerequisite for the success of this system is a smooth interaction between all parties involved.

Manufacturers and OEMs are increasingly transferring major elements in the value chain to external suppliers. Against this background, there is a demand for collaborative cross-company approaches to logistics that affect the whole supply chain. This includes the networking of systems and data across every link in the value chain. It is here that web-based software solutions for supply chain execution (SCE) take on a superordinate role in the planning and control of the core processes involved in cross-company transportation.

Matching up to increased demands made on suppliers

So that first-tier suppliers can match up to the increased demands being made upon them, they use an efficient stock management scheme known as 'continuous replenishment' (CRP). The ability to supply goods on such a continuous basis generally relies on an automated, jointly operated re-ordering system that regulates replenishment so that it complies with actual requirements.

Experience has shown that such refinements in the area of SCE can reduce transport and inventory costs by 20 percent and process costs by up to 40 percent. The web-based SCE solution designed by inet-logistics automates all tasks that arise from the planning, supervision and implementation of cross-company logistics processes. This also applies to all the areas of transport, freight cost and container management that relate to inbound control.

Transparency for all players along the supply chain

This solution enables all supply chain partners to link their IT systems via standardised interfaces to a central communications platform. Or they can have direct access via the Internet. Access to a common database enables an OEM to synchronise his own transport planning data with the despatch status information input by the logistics provider as well as the transport order data input by the suppliers.

This level of transparency improves response times in the case of interruptions or delays and boosts security of supply despite shorter lead times.