Automotive - First Tier Supplier

Automotive


First Tier Supplier and Automotive industries has been highly affected by globalization. Interaction between production and supply has increased dramatically, even though transport distances are often significant. Decreasing margins and an increasingly global market has prompted the automotive industry to move towards improving costs control and efficiency. 

The key process used by the most effective automotive systems is centralized planning, which takes into consideration disturbances at the supply and local levels, where extremely unpredictable demand also increases the complexity of estimating production capacity.

Both the production branches that generally coexist in the same plant– Original Equipment Management (OEM) and after-market sales – often impact the organizations themselves, making differentiated automation systems for strategic, tactical and operational planning becomes an unescapable necessity.

Another fundamental theme for planning support is giving visibility of deliveries to suppliers, as to allow the later to promptly react to changing market conditions and demand.

The workflows that were identified to implement the sedApta solution for the Automotive market, as to answer to these emerging necessities, are:

  • Strategic Planning, to integrate sales forecasts with company supply chain capacity;
  • Tactical Planning, to balance corporate and single production plant abilities with procurement planning;
  • Operational Scheduling, to synchronize production operations with procurement and materials logistics according to tactical plans.


Customer’s Case Study

A client of the Automotive industry has undertaken and successfully completed a planning and finite capacity scheduling project. Besides working for Original Equipment Management (OEM), the company is also active in the after-market sector, so it must manage an extremely differentiated demand, organized in diverse ways.

The service level that must be guaranteed to these businesses is different for each of them, but still very restraining and critical. Penalties will be applied if you don’t service the original equipment, while lost sales occur when spare parts management is not provided on time.

After the successful completion of the first project, the company has undertaken a second project for the automatic generation of Master Production Schedules. Major automotive companies accept orders in EDI mode, while about material procurement external suppliers are significantly involved. The company provides detailed centralized and collaborative planning to each plant. Production covers activities of machining, injection molding and assembly.

While branch roll-out is still in progress, the mid-term planning project has already achieved the following benefits:

  • Increased Level of Service from 85% to 92%
  • Improvement of the quality, regularity and orders planning horizons
  • Lower impact on supplier management in terms of audits and better evaluations
  • Better integration between company departments. 



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