SAP MANUFACTURING INDUSTRIES FORUM 2015 RUN SIMPLE: INTELLIGENTLY CONNECT EVERYWHERE

Transcription

1 SAP MANUFACTURING INDUSTRIES FORUM 2015 RUN SIMPLE: INTELLIGENTLY CONNECT EVERYWHERE SAP Manufacturing Industries Forum The Westin Lombard Lombard, IL June 23-25, 2015

2 Cooper Standard Automotive EDI Initiative SupplyCentre v.2 SAP Manufacturing Industries Forum The Westin Lombard Lombard, IL June 23-25, 2015

3 Company Snapshot 2014 Revenue: $3.244 billion (52% NA, 35% Europe, 8% Asia, 5% SA) $400+ million nonconsolidated JV Automotive Supplier Rank 1 : 67 Globally 41 North America 49 Europe Global Footprint: Employees: 97 facilities 10 technical centers 20 countries 27,000 + employees Product Groups: Sealing Fuel & Brake Delivery Fluid Transfer Anti-Vibration (1) Automotive News 3

4 Cooper Standard - Core Products Lines Sealing Systems #1 Globally Fuel & Brake Delivery Systems #2 Globally Fluid Transfer Systems North American Leader Anti-Vibration Systems North American Leader 4

5 Cooper Standard - Global Customers RENAULT 5

6 Cooper Standard Global Footprint 6

7 Problem Statement MMOG/LE Addresses Global Industry Challenges Materials Management Operations Guideline / Logistics Evaluation (MMOG/LE) is a global standard for supply chain management processes that reduces costs from errors, waste, and workload for suppliers and customers. Minimize bullwhip effect Carry less inventory Minimize expediting Reduced downtime Improved supplier status Customer demand OEM Tier I Inventory levels Tier 2 Tier 3 OEMs have been requiring MMOG compliance for years In 2014 and 2015, the mandate for EDI compliance has been significantly stronger, with requirements that new programs are 100% EDI compliant at start of production Failing to comply directly impacts our supplier status with OEMs 7

8 MMOG Requirement for EDI communication Requirement: A process for electronic data exchange shall be in place with suppliers, subcontractors, and logistics providers. The organization shall have the capability to electronically exchange materials and logistics information (e.g. planning releases, delivery schedules, ASNs) with suppliers, subcontractors, and service providers using traditional EDI and/or web-based solutions EDI data shall be in an industry standard format. Web-based solutions shall be in compliance with customer requirements. The use of manual data files such as paper documents, faxes, PDFs, and HTML are not acceptable. The extent to which electronic data are exchanged shall be in compliance with the customer's requirements (e.g. all sub-suppliers, critical commodities, purchase value, part volume) ASNs are transmitted at the time of conveyance departure, and the content of the ASNs is automatically entered and processed, without manual intervention, into the organization's system (e.g. receiving, inventory, accounts payable). The organization has a process in place to verify the accuracy of information transmitted and received (e.g. planning and shipping schedules, ASNs) and initiate corrective action if necessary. Transmission frequency and planning horizons are adequate for the total lead time of the part or commodity. 8

9 Chellenge 1 Not all suppliers are EDI capable Globally, less than 50% of our supply base can support traditional EDI We need a web based solution for the rest 9

10 Challenge 2 Solution must support a constantly changing ERP environment ERP consolidation Retiring outdated / unsupported systems Grow through acquisition Internet Suppliers Plant ERPs Translator All sites are all supposedly moving to a Global SAP solution in 5 years North America -> 30 sites, 5 ERPs Europe -> 18 sites, 5 ERPs Van EDI suppliers Brazil -> 3 sites, 1 ERP Asia-> 22 sites, 3 ERPs WebEDI Portal Portal suppliers Cooper Standard decided to gain flexibility by connecting using standard EDI transactions We can move ERPs all we want, we just need to reconnect to the EDI translator No need to constantly re-engage the portal provider Plants only need to know 1 process 10

11 Challenge 3 Must support traditional Release / Planning Schedule and ASN functionality Different from PO & order acknowledgement No pricing information Delivery schedule Dates No times Different commitments Firm Planned Forecast 11

12 Challenge 4 North America Operations wanted to include scanning in receipts in the solution barcode labels We want to use the supplier barcode labels to move inventory in our facility Every handling unit requires a unique serial number Each handling unit has its own barcode label Eliminates labeling each box at the point of receipt 12

13 Challenge 4, con t In addition to individual carton labels, we also need Master or pallet labels 13

14 Challenge 5 ASN has to be delivered to us in the proper EDI format, by region (X or EDIFACT DESADV) ISA*00* *00* *01* *ZZ*ITTFH2CAN *150604*1430*U*00401* *0*P*> GS*SH* * * *1430*768*X* ST*856* BSN*00*S048994* *1430 DTM*011* *1430 DTM*017* *1430 HL*1**S MEA*PD*G* *KG MEA*PD*N* *KG TD1*CTN90*72 TD5*B*2*HMES*LT TD3*TL** REF*PK*48994 REF*BM*48994 N1*SU**92* N1*ST**92*ITTFH2CAN FOB*CC HL*2*1*I LIN**BP* SN1**550*EA* PRF*C CLD*1*550*PLT90 REF*LS*M CLD*11*50*CTN25 REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S REF*LS*S

15 Conclusion We needed a flexible solution capable of connecting using a standardized protocol (EDI) that could provide barcode functionality at the carton level Why Ariba? We could connect using standard EDI Ariba had purchased a company called Quadrem, which provided the necessary barcode label functionality Globally scalable, especially Brazil Solution best supported traditional Manufacturing Planning Schedules and ASNs 15

16 SupplyCentre 16

17 Business Case MMOG Compliance Improved operations Retain strategic / preferred supplier status with OEMs Retain BID priority with OEMs Scanning in Receipts = Huge ROI Huge potential labor savings Opportunity to move resources to more value-added, less tactical work Example North America 17

18 Current Status June 2015 Summary EDI Portal TBD Grand Total Complete % In Progress % On Hold % TBD % Grand Total On Hold ERPs being updated to handle ASNs TBD do not know if supplier wants to use EDI or portal By Region EDI Portal TBD Grand Total Europe Complete % In Progress % On Hold % TBD % North America Complete % In Progress % On Hold % TBD % South America In Progress % Grand Total

19 Future State Immediate (2015) Finish NA and Europe plants in scope The rest of NA (new scope Q3 and A4) Onboard Brazil NA and Europe New NA einvoicing Brazil APAC Long Term (2016 ) APAC - pending internal ERP implementations and move to Ariba Network in 2016 (Chinese language support) China South Korea India einvoicing Need to send PO information to network 19