SCM Insights, Use Cases
March 23, 2015

Mitigating supply risks: Integrating suppliers and transportation service providers using the SupplyOn notification portal to ensure process reliability

Matching themes: ASN, Inbound Supply Chain, supply risks, transport management

When it comes to procurement and logistics, all business enterprises at the global level are faced with similar challenges. Procurement and material supply processes are becoming more complex, yet at the same time inventory costs have to be reduced while improving material handling.

In order to achieve effective, sustainable improvements in this environment, precisely coordinated, mutually agreed collaboration between all inbound supply chain partners is an absolute must. You must define and codify processes with your suppliers and transportation service providers to minimize supply chain risks.

You should ask yourself the following questions:

  • How can your MRPs/schedulers proactively identify imminent supply chain risks in good time?
  • How is your transportation service provider made aware of “your” requirements and deadlines at the earliest possible opportunity?
  • How do you and your suppliers get a common status update of your actual supply situation?

An IT solution is absolutely vital for mapping the processes mentioned above. Yet in attempting to meet this challenge, many companies come up against the limitations of “their own” IT systems. Implementing a solution in a “proprietary” system is not effective, both for compliance reasons (access from external sources) and given the immense rollout effort required. Phone, fax and e-mail communication with suppliers and transportation service providers can lead to process discontinuities and opens the floodgates to other problems (like unscheduled delivery runs or high inventory levels) and will not sustainably improve the situation.

The SupplyOn notification portal enables you to implement agreed arrangements (integrated in your existing ERP infrastructure), thereby delivering process reliability and allowing you to collaborate with your inbound supply chain partners, with support from a proven IT system. Identification of critical inventory and supply situations is fully automated and EDI-based. You no longer have to identify discrepancies by manually comparing and reconciling requirements lists with delivery schedules.

The automated early warning system gives you ample time to react to imminent bottlenecks in advance and manage fluctuations flexibly. Supply chain transparency is improved dramatically, and you can prevent inventory shortages or costly unscheduled delivery runs.

Your detailed requirements and quantities are communicated to transportation service providers and suppliers simultaneously, enabling them to optimize their scheduling. Transportation is commissioned electronically in the integrated process, providing all those involved with the same degree of transparency. When the goods are ready to ship, the supplier documents the commission order by sending an automated notification message to the transportation service provider – this is the basis for the Advance Shipping Notification (ASN) to your company.

Since there are no more redundant tasks, this improves the ASN rate as well as the quality of master data for follow-up processes. Customers who have deployed our solution achieve specific savings that quickly compensate for any expenditures for project planning and implementation, and they dramatically increase the security and stability of their supply chains.

See how one of our customers benefits from the notification portal – just click here.

thomas huebsch

Thomas Hübsch

Sales Manager

What are the main characteristics of the automotive industry? In addition to the capacity for innovation and the high market value of the products involved, the processes employed are often used as the benchmark for the manufacturing industry and as a shining example for other industries. I find that fascinating and I see it as my job to promote this kind of process excellence. In my posts, I try to cover the potential behind cross-company collaboration beyond phone calls, faxes, and e-mails. With well over 20 years’ experience in the automotive and IT industries, I’ve got plenty to share with you.

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