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Codimensional Spirit Smart Business Engine (CSE) is a high-dimensional Xincheng SAP-based mySAP A-in-One system solution. It combines the localization of Chinese companies and the business understanding of the industries they implement. Growth enterprise ERP industry solutions.
Problems faced by auto parts industry
Collaboration with Host Plant Plans
The production of automobile parts manufacturers is generally based on the production plan of the main engine plant, taking into account the demand of the accessories of the main engine plant and the demand for the parts of the market. Due to unpredictable changes in the market, the main equipment manufacturers generally adopt the on-time delivery system. It is difficult to ensure the stability of the plan, which will inevitably bring great uncertainty to the planning and procurement of the entire logistics.
Gradually localize the process of management
At present, it is generally an auto parts company that is supported by a main engine plant. The development of products is generally developed in advance by foreign countries, assembled by SKD, assembled by CKD, and gradually realizes the process of localization. Therefore, for some general types of materials, it will exist in the factory at the same time. In the case of outsourcing and self-control, under normal circumstances, self-made parts are used for market accessories, and imported parts are used for matching parts of the main engine factory.
On-time delivery capability
At present, the OEMs generally adopt the “instant supply†mode of supply. The suppliers schedule according to the needs of the customers and deliver the products to the production line one hour or several hours in advance for assembly and use. On the other hand, the customer's requirements are also very strict. If the customer's production line is suspended, the supplier will have to pay compensation for breach of contract.
In fact, the problem of inability to deliver on time is far more than just compensation for breach of contract. In many cases, once a production line breaks down, the customer's reputation will be affected, and competitors will take advantage of it, causing the company to lose business opportunities. In order to achieve "on-time delivery", suppliers generally rent warehouses around the customer's factory (generally within 3 miles) so that the goods can be shipped to the warehouse in advance so that customers can access it at any time according to their needs. However, due to the untimely delivery of information and inaccurate estimates of market changes, in order to ensure the supply of goods to supporting plants, high inventory must be kept, resulting in unnecessary capital wastage.
"Rapid response" capability
The "quick response" reflects the company's professionalism. Statistics show that about two-thirds (68%) of the reasons for customer replacement suppliers are that the original suppliers failed to make timely arrangements, and the customer’s needs have not been given attention and feedback.
"Quick response" is also reflected in the after-sales service. How to track the quality of products, timely deal with quality problems after sales, and quickly analyze and solve the causes of quality problems, but also put forward higher requirements for the automotive parts industry informatization.
solution:
Sales model: According to the actual management needs of the host plant, using the consignment method, the sales process is divided into two steps, so that the sales process and logistics of the host plant fully meet the requirements of financial settlement, and can simultaneously track the sales of auto parts factory The status of the goods and the shipping status of the consignment stocks of the host plant ensure the timeliness of the supply of the host plant;
Plan mode: Completely synchronize the production plan of the host plant. Divide the production plan into annual plan, monthly plan, weekly production plan, and daily production plan. Each plan is to introduce the corresponding production plan of the host plant, and then predict the sales of the accessories according to the market. And after taking into account certain safety stocks, the production plan will be changed at any time with the change of the production plan of the main plant, and the procurement plan for the materials will be generated (imported procurement and domestic procurement);
Development model: After the OEM has gradually handed over the development of components to auto parts manufacturers, the development of auto parts must be synchronized with the development of the main engine plant. Therefore, in the development process of the main engine plant, the main engine factory and the parts factory use the same. The parts coding system and the product structure (BOM) are integrated together so that no matter in terms of plan generation or logistics, it can achieve “seamless integration†with the host plant and achieve the synchronization between the plan and logistics and the host plant. ;
Logistics model: General OEMs currently use "Just-in-time" supply. The OEM will issue replenishment instructions to the parts factory according to the assembly plan of the production line, in order to quickly respond to the needs of the host plant, but not to keep too much inventory. Requires that the parts factory plan flow and logistics synchronization with the host plant, as well as the production plan and logistics plan in a timely manner to maintain synchronization with the host plant changes, CSE-AUTO SUPPIER in the entire system design fully takes into account this synchronization, so that accessories The supply can meet the requirements of the OEM.
Control mode: The CSE-AUTO SUPPIER system changes post-event control to in-flight control. Through the overall control of business processes, it is possible to change factors that are not easily controlled in the enterprise's operations into factors that can be controlled; management and decision-making can Real-time inquiries, accurate analysis of market and data analysis reports, better grasp and improve the decision-making program.
Return on investment analysis
Because the CSE program has solved the planning coordination between the auto parts factory and the main engine plant, the auto parts supplier can change its own production plan and procurement plan at any time according to the requirements of the main plant. This will prevent a large backlog of stranded raw materials and finished products and improve liquidity conditions. At the same time reduce your own inventory costs.
The CSE program fully considers the use of the JIT supply method by the auto parts supplier to the OEM. This approach allows auto parts suppliers to avoid large amounts of finished goods inventory, which can also result in poor cash flow and high warehouse costs. At the same time, it can meet the needs of OEMs and establish mutual trust. The high level of trust among partners can make strategic partnerships strategic. As a result, information exchange between the two parties is more complete. Logistics is planned from the perspective of the overall supply chain to reduce costs, increase sales, and achieve win-win results.
The CSE program can aggregate a large amount of information at the operational level for management and decision-making. Information is the basis for decision-making, which can help decision makers quickly adapt to the changing external environment, or find out the links that can be optimized in internal management.
Successful Application - Hella Lights Optimization Cooperative Business
In the early 1980s, Hea came to China as a global partner of the automotive industry and independent parts distributors. Focusing on long-term development with domestic host customers, Hella established Changchun Hella Lights Co., Ltd. in 1995 to provide matching supplies to FAW-Volkswagen, FAW Group, Hafei Group's Jetta, Audi, Bora, Sino-Italian and more than 10 models. Lighting products, through continuous introduction of advanced technology and strengthen their strict control of quality, cost, delivery and after-sales service, to achieve customer satisfaction.
In the middle of 2002, information construction began. At the end of 2002, the implementation of the project was completed. Through the implementation of the project, the original business process has been optimized, business processing efficiency has been improved, and businesses and reports can be monitored more quickly and efficiently. The most important thing is that SAP's implementation has enabled Hella to achieve the goal of strengthening extensive synergies, manifested in the "three synchronizations":
Synchronous development: Hella and OEM manufacturers to achieve master data synchronization updates, OEM new models or technical improvements, if you need the corresponding development or changes in Hella headlights, will lead to the emergence of Hella new material number. Hella internal data management uses a PDM system, while PDM and SAP achieve data synchronization, maintaining data accuracy and improving maintenance efficiency.
Synchronous plan: Hella's sales plan is synchronized with the OEM's demand plan. Hella's internal supply chain achieves synchronization of sales plans, production plans, and procurement plans, which enables Hella's planning to increase efficiency, improve accuracy, and reduce inventory backlog. At the same time, it also ensures the smooth implementation of the plan.
Synchronous support: OEMs can receive OEM's demand for goods at any time through the data transmission interface. They can adjust production plans in time, deal with insert orders, and allocate stocks. And OEM through the data transmission interface, real-time synchronization of logistics and distribution, in the receipt of the OEM goods plan, delivery within 2 hours.