The automotive industry is facing a transformation as predicted by the accounting and consulting firm PwC. At the same time, the year 2020 is casting shadows ahead and posing enormous challenges for the industry, for example due to Brexit, the US trade policy, the uncertainty with respect to future drive systems or new legal regulations, such as the WLTP standard.
Release orders, etc.: Recognizing Fluctuations in Demand Early
So if automotive manufacturers (OEM) therefore reduce their production, relocate it to different plants or remove certain model versions, the suppliers will also suffer. Among other things, they must expect considerable fluctuations in the release orders of delivery quantities. If the set tolerance limits as well as minimum and maximum purchasing quantities are violated, this has a negative impact on the planning reliability and efficiency of the supply chain process at the supplier's location, which can lead to additional costs and erode the supplier’s delivery reliability rating.
It is all the more important that a supplier detect such fluctuations at an early stage and respond to them immediately. This is an invaluable advantage mostly with respect to costs, but it also has a positive impact on competitive capability. The necessary prerequisite for this is a consistent, IT-supported and therefore efficient and transparent processing of the relevant SD delivery schedule processes. Suppliers who use SAP software (SAP ERP or SAP S/4HANA) quickly reach their limits, because the standard functions do not support these processes or do not sufficiently support these processes.
SD delivery schedule processes: SPEEDI closes gaps in SAP
Tried-and-true SPEEDI solutions from WSW Software help here, which seamlessly integrate into existing SAP software , expand it without modifications and therefore close gaps in the SAP standard with respect to the SD delivery schedule processes, as the following examples show:
• The SPEEDI tolerance line check checks already when incorporating a release order whether set tolerance limits are not met or are exceeded. Violations are therefore detected early and prompt appropriate measures can be taken. This has a positive effect on scheduling and the production planning and calms processes in the value added chain.
• The SPEEDI solution “Release order behavior SD analysis with aggregation” creates complete transparency regarding the development of purchasing quantities through a cross-delivery schedule evaluation of the release order behavior at the day, week or month level. It shows when tolerance limits were violated and also visualizes whether the release order behavior of a customer changed subtly over a longer period of time.
• The SPEEDI solution “Monitoring minimum/maximum purchasing quantities” clearly visualizes to the supplier whether the minimum and maximum purchasing quantities agreed with a customer are exceeded or not met in a certain time period. In this way, the supplier is promptly warned of overcapacities in production and vice versa of capacity bottlenecks.
• The SPEEDI turnover/sales outlook uses comprehensive analyses to create a clear view of the current turnover and sales quantities for scheduling-related material and clearly presents the result at the desired aggregation level and int he necessary depth of detail. This is a crucial business factor in times of fluctuating orders and delivery call-offs.
• The SPEEDI scheduling agreement copier SD allows for a largely automatic rejection or new creation of SD scheduling agreements, which simplifies and streamlines processes and creates a high level of process reliability. The supplier is therefore equipped to handle new delivery scenarios at a customer, such as those that result as part of a reorganization or product relocation.
• The SPEEDI delivery reliability SD solution quickly and reliably determines whether the delivery dates desired by the customer will be met and helps to achieve a clear view of one’s own delivery reliability. It is a critical aspect in evaluation by the customers.
• The SPEEDI fiscal year change ensures that the regular fiscal year change can adapt to the specific requirements of the respective customer. The cumulative quantities in the SAP scheduling agreements are automatically reset to the correct value and are therefore always correct.
Check and analyze delivery call-offs, check purchasing quantities, determine current turnover and sales quantities, copy scheduling agreements, determine one’s own delivery reliability, correctly carry out the fiscal year change and much more. Suppliers use SPEEDI solutions that are seamlessly integrated in the SAP software to not only make their SD scheduling agreement processing much simpler, more efficient, more transparent and safer, but also reduce manual activities to a minimum. This leaves more time for core tasks – a clear added value.
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