Category: SCM Insights
Many companies operate historically grown multi-backend system landscapes. Mergers and acquisitions, international expansions, new sites and plants, different update cycles, etc. have multiplied the number of ERP systems within the organization over time. This in itself is not a problem. However, if you wish to use a central procurement system for all your plants and locations at the same time, things become tricky. Today’s Supplier Relationship Management (SRM) systems often support only a single ERP as a backend system. So, what to do?
Continental and ZF Friedrichshafen’s customers include numerous automotive manufacturers (so-called OEM). In this industry, the demands on logistics, feasibility, quality, quantities and compliance are particularly high. Both companies therefore need absolutely reliable partners.
Until recently, however, they were faced with a challenge: How can they check with both known and, in particular, new suppliers to see whether they can produce newly developed parts in the required quality and quantity, deliver them on time and on the right terms and conditions? Read more
The coronavirus pandemic has turned everything upside down: Plants around the world had to shut down production. As a result, supply chains and thus transport networks often collapsed across the board. This is precisely what is now confronting companies with a major problem when they re-start production: even if suppliers are producing the required materials again, how do these get from the supplier’s premises to their plants?
Transportation problems are not limited to shipping and air freight, but also to road transport, which has so far been easy to manage. The transport networks that companies could previously use no longer exist for the most part. As a result, the processes with the carriers that used to work well are no longer functioning. So, what to do? Read more
COVID-19, its effects on the industry and the restart of production currently dominate on the agenda. Everyone is longing for a return to normality and this will be the case in a few months’ time. The world will not stand still and it is certainly not standing still at this very moment. Read more
Planning, purchasing, logistics and transport management are traditionally separate processes, typically located in different departments. The material planners determine how many parts production requires and order these from the supplier, considering safety stocks. The suppliers operate in their own systems, as does the transport service provider. What, when, in what quantity and at what time is to be delivered usually remains unclear until goods receipt. Read more
The current coronavirus pandemic poses enormous, unprecedented challenges for companies. Efficient risk management plays a central role in meeting these challenges. It is not so much a question of whether the current situation could have been anticipated and planned for. Rather, the focus is on how companies can now best protect their core processes and increase the resilience of their operations. Read more
The Corona pandemic took us all completely by surprise. Few people expected a “black-swan” event like this. And even the boldest risk scenarios have not foreseen or dealt with the scale of the problem we are currently experiencing.
Supply chains have been severely disrupted or even completely collapsed within a short period of time, especially in the automotive and aviation industries. If important suppliers stop producing, warehouses are not working and transports out of “red zones” are not possible, then production cannot be maintained, or only with great difficulty.
But not everything has come to a standstill. Where production is still going on, it is now particularly important to know what is happening during transport, how long are the waiting times at the borders, where are the restrictions and what time effects will this have on the delivery.
Much has already been written about flexible production and logistics networks, especially in economically turbulent times. However, the reality in many companies is still that production program planning and logistics planning run side by side in a non-integrated manner. Supplier integration, too, is usually only partially implemented. Read more
Buyers in the manufacturing industry face a variety of challenges, such as volatile markets, high competitive pressure and ever shorter product cycles – catchword time-to-market – to name a few. Adding to that, manufacturing companies primarily source production components, placing high demands on quality and delivery time. But also the so-called indirect material offers a great potential for optimization. Many are asking how to optimize the entire purchasing process in such times. A promising approach is online auctions. Read more
It’ s nothing new that considerations of optimization focus on excessive inventories and overly high planning or disposition costs. This is all the more true in tougher economic times.
This is where the new opportunities of digitization come in: the continuous provision of data from supplier production to transport logistics and even in-house intralogistics is no longer a vision of the future. Even minimizing process costs is now a reality thanks to automation. Read more