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Reference Report

Röchling Automotive relies on the AVENIO preference processing add-on

High level of legal certainty thanks to automated preference processing in SAP

The "Röchling Automotive" division is globally positioned with over 6,000 employees in 41 locations on 4 continents. The plants are located in Europe, Asia, North and South America. The production and supply spectrum revolves around plastic solutions such as underbody panels, air flap systems, tanks, and battery covers.

A planned expansion of the SAP system prompted Röchling to also consider a new IT solution for preference processing. At that time, preference processing was carried out partly manually and independently at each of eleven EU locations.

Photo of the main building of Röchling

Markus Mann, Specialist SAP Business Application SD/HR Global at Röchling Automotive:
"The decentralized and partly manual processing led to ever increasing costs and a lack of transparency. Our goal was to automate the processes in SAP ERP across the board. And because the foreign trade components in SAP ERP were no longer being developed further, we needed a new IT solution. We initially considered SAP GTS. However, our volume was too low to make it worthwhile."

Preference processing with AVENIO - customs-compliant and fully integrated in SAP ERP

Following a recommendation from an external consultant, the decision was made in favor of the SAP-based add-on "AVENIO (formerly SPEEDI) Preference processing" from WSW Software. The solution was implemented in just two and a half months - fully integrated into the SAP ERP environment. Today, preference processing for all eleven locations is carried out centrally at the Peine site with AVENIO. In the past, more than 30 employees were more or less intensively involved with activities around Long-term supplier declarations (LLE) and Preference calculations were employed, today there are three employees who concentrate 100 percent on these tasks. 

The processes for obtaining and issuing supplier declarations for components and materials - 25,000 in one year alone - have been significantly simplified. All work steps are documented and can therefore be traced at any time, ensuring legal compliance with both customs and the customer.

AVENIO functions used at Röchling

Cockpit for requesting long-term vendor declarations (LTVD) from suppliers

Enhancement: cross-plant preference determination (with cross-plant bills of material)

Enhancement: LTVD request using SAP Adobe Interactive Forms

Possibility of recalculation in case of subsequently changed parameters (e.g. in case of production shifts) of the original preference determination

Cockpit for issuing and monitoring LTVD to customers

Extension: Preference determination for US agreements (formerly NAFTA, now USMCA)

Preference determination

Declaration of origin of goods according to US-AALA (American Automobile Labeling Act)

From the respective cockpits, Röchling employees control all LLE processes such as requesting, reminding or sending. The processing of returns is also largely automated with the help of the interactive Adobe forms. The use of interactive forms also means that there are no more media disruptions for suppliers. The original documents are linked to the archive and can be retrieved at any time. All processes are system-supported and are therefore managed clearly and transparently. In the event of an audit, they can be verified at the touch of a button.

Preference calculation is also centralized with AVENIO and takes place across several plants or company codes. It also takes into account individual US specifics such as the AALA - American Automobile Labeling Act. WSW Software has expanded SAP specifically for this purpose, so that the system now clearly shows which percentages from the USA and Canada were included in the delivered sales products and which had a different origin.

Automated recalculation and documentation of change statuses

As with many other manufacturers, Röchling must continue to supply spare parts for at least ten years after a series has been discontinued. Spare parts production does not always take place in the same plant as series production. Changes to the parameters of a preference calculation - such as relocation of production to a new country, new purchase prices for primary materials, a change of supplier or component changes - make a recalculation necessary.

This often happens at Röchling Automotive. Similarly, the change statuses must be documented and managed. Both processes - the recalculation and the documentation of change statuses - are automated at Röchling with AVENIO and therefore stand up to any customs inspection.

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