Automation Magazine - Holding the Key to Global Expansion

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Automation Magazine - Holding the Key to Global Expansion

  1. 1. N° and issue date : 130601 - 01/06/2013 Circulation : 26120 Page : 10 Frequency : Monthly Size : 100 % Automation_130601_10_3.pdf 624 cm2 Website: www.connectingindustry.com Industry Focus Automotive Supply Chain Holding the LuNNecTiNoINLIU5TRY.LUM / AUTOrvlATION key to global expansion Mark Morley director of industry marketing for manufacturing at GXS takes a closer look at how automotive manufacturers can expand into new markets via the use of global platforms and cloud B2B , , witha growing need which also helps to reduce inventory levels but more importantly global supply chains The only downside with introducing more standard parts across multiple car brands is that it significantly increases the chance of more vehicle recalls if a part fails. This in turn places more pressure on the Tier 1 suppliers to increase the of the parts they supply to their customers Introducing a cloud-based B2B platform helps to standardise the way in which a car manufacturer engages with its suppliers A centrally hosted suite of Software-as-a-Service ( SaaS ) can be deployed very quickly across an existing trading partner community and they alsohelp to onboard new suppliers in remote locations. Deploying a cloud-based platform can provide a significant competitive advantage when entering a new market Companies can also in other areas such as using communication protocols such as OFTP2 or even a standard message set The German automotive industry is currently working towards standardising on a new global message set based on EDIFACT as they find the traditional VDA message set too restrictive when supporting their global operations. to expand into new markets such as China India and Brazil and gain market shareas quickly as automotive manufacturers increasingly need to set-up production facilities and onboard trading partners in ever shorter periods of time. Many manufacturers have turned to global vehicle platforms to help meet this demand which sees them sharing designs components and production efforts across multiple models and types This in-turn helps to rationalise suppliers and standardiseon components and other sub-systems used in the manufacture of the vehicles. Uniting vehicle platforms naturally provides an opportunity to internal IT business and production systems as well. Having a standard vehicle platform that can be used acrossmultiple markets provides the most cost efficient way of undertaking international expansion projects and Volkswagen VW has been a particularly strong example of this The company owns more car brands than any other car manufacturer and has achieved a high level of commonality across their platforms and parts whilst at the same time retaining the individual identity of each car brand. VW' s next generation MQB platform will provide a significant competitive advantage in the market and is tipped by some analysts to be as significant for the industry as Henry Ford s production line and Toyota' s Just-In-Time production system Even though it has taken six years and $70bn to develop the platform it is expected to see a $19bn saving by 2019. Rapid global expansion still presents a number of wider challenges for supply chain logistics and IT Faced possible simplifies , , , , 1: 0 Mark Morley director of industry marketing for Above : manufacturing , , quality . GXS . consolidate . applications , associated . standardise , ( ) , , , ' . , , . . vehicle . Below : as atively short period of time. For example Just-In-Time has been used for many years but common vehicle platforms will encourage more ' Supply In Line Sequence' ( SILS production to take place i.e different vehicles being assembled on the same production line Cloud B2B platforms help to remove the complexity of managing today' s supply chains From simplifying the management of trading partners to improving end to end visibility of global shipments cloud B2B platforms offer many advantages over moretraditional behind the firewall B2B software environments. From mediating between different communication protocols document standards or even integrating with a back end ERP platform such as SAP cloud B2B platforms help to shield users from the complexities of both deploying and managing a global production , ) . . . , , , B2B platform. As globalisation continues production and cloud B2B many environments will share characteristics consolidation standardisation and reduced complexity. Cloud B2Ballows vehicle to scaletheir B2B requirements to meet the needs of their global environments and associated Increased supply chain network adoption of common vehicle platforms will help to drive further widespread adoption of cloud-based B2B platforms over the next fewyears. , automotive , , manufacturers production globalisation continues automotive production and cloud B2B environments will share many characteristics , consolidation , standardisation and reduced complexity Reduced complexity Common vehicle platforms allow vehicle sub-systems to be used across multiple vehicles which helps to simplify the production process The production environment itself can alsobe significantly simplified allowing new production lines to be established in new regions around the world in a rel , . . GXS www.gxs.co.uk T 01932 776 047 : Enter201 , infrastructure professionals supporting facilities however To address this manufacturers should the benefits of a sharedplatform with cloud-based B2B integration to provide the flexibility and agility their expanded supply chains need In fact cloud B2B integration and global platforms are remarkably similar across threekey areas. new , . , complement . , vehicle Increased standardisation Common vehicle platforms allow manufacturers to consolidate parts and hence rationalise suppliers 10 UIDN N CT AUTONIP ,TION 1/1 Copyright (Automation) No reproduction without authorisation JUNE 20 1 Automation GXS

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