Procedural use of global standards for logistics Roadshow: 03.06.2014 Wolfsburg, 05.06.2014 Ingolstadt Matthias Lühr (LLX/B)
Information logistics as success factor in the logistical supply chain Globalisation results in increased delivery times in the transport chain increased demand for resources complex supply chains higher levels of safety stocks Increased transparency throughout the supply chain counteracts this trend Reduction of safety stocks with prompt information of any disturbances in the process Special trips can be avoided L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 2
EDI with VDA messages have not changed in the Group since the 1970s but the processes have! EDI = Electronic Data Interchange is the exchange of structured business and product data in the delivery process for production material, spare parts and A-material In the past Logistics processes were few and simple Catchment area was Germany Today and the future Many complex logistical processes Worldwide EDI communication due to globalised Group L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 3
CURRENT status in today's EDI supplier communication Processes Variants Security Test Support Area of application Only simple processes can be mapped Extensions stretch beyond the standard Many process-related variants beyond VDA standards No process security with transferring coded information Tests are not possible A lot of variants make roll-out difficult Higher support efforts Several formats for each process Focus on Germany Additional message formats are requiredin the international environment EDI communication is no longer in line with future requirements L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 4
New global standards were developed as part of the VDA (German Association of the Automotive Industry) VDA has created standards for the German automobile industry based on global EDI messages VDA standards agreed upon mutually by Volkswagen, AUDI, Porsche, BMW, 1st level suppliers and IT service providers Global standards for call-off and delivery notes are complete Call-offs Delivery note Accompanying paperwork Container note VDA 4984 (Global DELFOR) VDA 4987 (Global DESADV) VDA 4939 (Transport and dispatch notes) GTL (Global Transport Label) L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 5
Benefits and opportunities of the new global messaging Simplicity Processes Security Roll-out Standardisation Reducing the complexity (e.g. 1 call-off form, instead of 8) Transparent and flexible process support (Process identification clearly helps to process the message) Additional transfer of uncoded information (e.g. place of unloading, planning data) Roll-out of new processes, messages or the integration of new suppliers are separate from the operative business (test messages) 10-digit format of the supplier number for Volkswagen and Audi Security in the logistical processes L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 6
VDA 4984 Global DELFOR More qualified information for the suppliers with the new message format Suppliers Carriers Volkswagen VDA 4984 (Global DELFOR) Current status With use of VDA 4984 Only key information is transferred, so master data must be maintained in a decentralised way Different coding for the suppliers numbers No difference between arrival date and collection date Master data is stored centrally at Volkswagen and is sent with the message Contact partners in Volkswagen plants are specified in the message Labelling for arrival date or collection date L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 7
VDA 4987 Global DESADV Use of standard notification for process participants Suppliers Carriers Volkswagen VDA 4987 (Global DESADV) Current status With use of VDA 4987 Not all packaging structures are communicated The use of different formats make it more complicated for additional process partners to use Different coding for the suppliers numbers (10-digit) Standard format can also be used for carriers Main route planning possible for carriers Improved tracking with advance information to process partner Work errors are reduced when recording due to improved notification quality L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 8
VDA 4939 transport and dispatch notes Use in material flow with standard accompanying papers from all suppliers Suppliers Carriers Volkswagen VDA 4939 (transport and dispatch notes) Current status The lack of standard accompanying papers leads to work errors Searching for key information on the papers is time-consuming The paperwork is not optimised for the individual work steps VDA 4939 universal introduction The key information is always in the same place Work errors are minimised Optimised paperwork accelerates the work steps for the test processes Tracking at the sending level is possible L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 9
GTL Global Transport Label Clear identification of the container in the entire process chain Suppliers Carriers Volkswagen GTL (Global Transport Label) Current status VDA 4902 is not clearly identified VDA 4902 is not an international standard Use of universal single note process is restricted Universal introduction of the GTL Universal control and tracking is possible at container level with the EDI delivery note Less time consuming due to no more note changing Less work errors due to no more note changing in the process L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 10
The new VDA standards enable all those involved to achieve improvements in the processes Supplier No decentralised master data Flexible messaging simplifies adjustments for process modifications Carrier Standardised delivery papers Prevents work errors Reduces handling workload Group plants Standardised delivery papers Prevents work errors Reduces handling workload L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 11
It is crucial for the Volkswagen Group to maintain relationships with its suppliers... and to exchange information with one another regularly. So come and visit us at the stands in the foyer. Volkswagen needs reliable and stable process partners. L 03./05.06.2014 VDA Roadshow_Wolfsburg und Ingolstadt.pptx Page 12
Thank you!