Reference Report
Significant added value for HARMAN thanks to automated tolerance line check in SAP
Since 2005, HARMAN has been working with various SPEEDI-WSW Software solutions to optimize its supply processes, such as VMI replenishment control, demand and capacity planning, analysis of call-off behaviour and tolerance line checks. Specific OEM processes are also optimized with SPEEDI covered. All solutions are seamlessly integrated into the HARMAN SAP ERP system (ECC 6.0).
HARMAN International
HARMAN International is a technology group belonging to the Samsung Group with 31,000 employees. The company develops and produces connected car systems and high-quality audio products in North and South America, Europe and Asia. More than 50 million vehicles are equipped with HARMAN systems. Its customers include almost all of the world's leading car manufacturers.
Tolerance limits in SAP: quickly check, recognize, act
Tolerance limits are usually agreed between the customer and supplier, within which delivery quantities and dates may be called off. If a customer calls off less or more than the agreed quantity, this has a negative impact on the supplier's supply chain processes, which results in additional costs and reduces the supplier's ability to deliver. Delivery Reliability assessment can deteriorate. It is therefore important that suppliers can immediately recognize deviations from defined tolerance limits and take immediate action. The SAP standard does not offer sufficient functions for this - HARMAN has also recognized this.
HARMAN receives around 400 call-offs a day from one of its German premium OEM customers alone, which have to be checked by Customer Support. There is not much time for this, because if delivery call-offs are outside the limit, HARMAN only has one to ten days - depending on the delivery horizon - to report its objections to the customer. Otherwise, the company faces expensive additional payments. The manual effort required to check incoming delivery call-offs was enormous at HARMAN and sometimes led to errors. In addition, the OEM had stipulated that its supplier had to report tolerance violations within just one working day. HARMAN approached WSW Software with the problem.
It quickly became clear that the solution SPEEDI HARMAN commissioned WSW Software with the implementation. In the meantime SPEEDI has been in full use at the HARMAN plant in Hungary for over a year, including for incoming delivery call-offs from the German automotive customer. The approximately 3,000 EDI delivery call-offs received daily are automatically checked for over- or underruns when they are entered into SAP. All deviations are clearly displayed via a monitoring system and the dispatchers can decide at the touch of a button whether tolerance violations should be reported or not. If this is the case, an e-mail is automatically sent to the customer.
HARMAN has the solution SPEEDI Tolerance line check rolled out successively for all customers. The tolerance check is used worldwide at HARMAN production sites in China, India, Mexico and Hungary.
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