Recently, we completed a project with a greenfield EV OEM who is committed to establishing a supply-chain focus in their operation’s start-up. They invited the Auto Supply Chain Prophets to support their team in identifying their organization’s essential supply chain processes and ensuring their integration within a unique TaaS (Truck as a Service) business model. TaaS involves not only the manufacture of vehicles but also the ongoing provision of services necessary to support commercial delivery fleet managers.
Hands-on Guidance Around Key Supply Chain Processes
Over a 12-week period, we met for 90-minutes per week with their team of business analysts who are responsible for guiding solution partners within and supporting their operations with specifying, selecting and developing sustainable information technology solutions in support of their value chain.
Throughout this live facilitated online training series, the business analysts therefore learned about current automotive industry requirements, tools and best practices based on automotive industry Quality (ISO 9001 & IATF 16949) and Delivery (MMOG/LE) standards as they relate to supply chain processes. In addition, the business analysts evaluated the alignment between physical material flow and information flow to ensure seamless integration of their key supply chain processes in QAD’s Adaptive ERP and Supply Chain solutions.
The structure of the training series spanned the entire value chain, from initial receipt of customer requirements and program planning (Automotive APQP) to sourcing, production planning, production control, physical logistics as well as measuring overall supply chain performance. Relevant automotive requirements from ISO 9001, IATF 16949 and MMOG/LE were reviewed with the business analysts for each step in the value chain. The Auto Supply Chain Prophets then shared best practices from their combined 70+ years of automotive manufacturing experience. The team indicated that the sharing of these examples was key to their learning.
Critical inputs were identified related to each stage of the automotive value chain and the business analysts reviewed planned methods for capturing and validating these inputs both within and outside the QAD solution set.
The business analysts identified current processes by leveraging QAD’s OEM Automotive Process Map as a basis, and plans for supporting each step of their value chain, and created an integrated quality/supply chain process map reflecting their organization’s information and material flow.
Some specific processes were targeted for automation based on automotive industry best practices. And, many of these had already been identified by the organization for automation and integration as part of their value chain.
At the conclusion of the training series, the business analysts reported a better, more deeper understanding of the “big picture” for the automotive industry supply chain and quality requirements. They also indicated that the learning reinforced some techniques already in use while providing a clear roadmap of the work ahead to ensure the best use of technology to achieve an automated and integrated value chain.
The business analysts also recognized the importance of following their value chain in reviewing current processes to identify data owners. This focus will ensure alignment between the needs of their solution partners and recommended technology solutions.
A key area of focus discovered through their learning was related to sourcing and supplier performance, in particular ensuring buyers have the data they need to manage meaningful conversations with the organization’s suppliers at all tiers (Tier 1 – N). As well, providing a solution for monitoring supplier KPIs as well as delivering scorecards to suppliers was identified as a key area of opportunity.
Listen to the Experts on the Auto Supply Chain Prophets Podcast
The Auto Supply Chain Prophets are available to support your organization with a comprehensive review of your existing and/or new automotive supply chain processes to ensure your organization can consistently deliver on the promise of delivery to your customers. To learn more about the 24 essential supply chain processes and what they can do for you, listen to the Auto Supply Chain Prophets podcast Episode 19 entitled “24 Essential Processes to Build a Foundation of Supply Chain Management”.
This article was co-written by Cathy Fisher, founder and president of Quistem, LLC.
