Supply Chain Management

Automotive Supplier Management

Today’s vehicle manufacturers must contend with the critical need to bring quality products to market faster and cheaper. Many automotive OEMs have adopted Total Cost Management (TCM) initiative in order that their supplier’s expertise can be harnessed to drive top line revenue and reduce the Cost of Goods Sold (COGS).  Strategic sourcing as an important component of TCM aims to reduce COGS not by reverse auctioning or by beating up suppliers for lower prices but by establishing profitable collaboration for all parties. Such collaboration is becoming more essential as the industry undergoes a transformation to increased outsourcing in which automotive suppliers take responsibility for the design and production of major components, assemblies and the entire automotive subsystems.

Dassault Systèmes (DS)' Automotive Supply Chain Management solution provides automotive manufacturers and suppliers with a set of tools needed to manage the sourcing cycle from the first collection of requirements to the on-going tracking and improvement of supply-base performance. The solution provides the platform with which the supply-chain is categorized by profiles, providing the structure of suplliers by locations, capabilities, etc. Once the framework is established, the OEMs can effectively communicate the needs of development organizations and fulfill the needs of the supply-base. Large Request For Quotations (RFQs) can be created and managed by the buyers with documents, specifications and other pertinent information shared in real time. This enhances communication and consistent understanding among candidate suppliers while facilitating better negotiation processes.

The automotive supplier selection process remains one of the most pivotal and critical decision activities in the development process. In most cases, the majority of the overall cost to deliver a product come from sourced materials that are determined in this process. Decisions are not made lightly and likely involve the collection, organization and analysis of complex information among many different suppliers. DS' solution allows buyers to gather this information for efficient comparison and analytics, In addition, buyers can create acceptance criteria to provide an objective view of the collective supplier responses.

The automotive sourcing process is not completed once the contracts are awarded. Critical information is exchanged well after the contract agreement. DS' solution allows automotive OEMs and suppliers to continue the collaboration throughout the product development phases to ensure that the momentum is maintained and costly mis-communication is avoided. Change requests are managed, supplier scorecards kept, and quality plans can be jointly developed between the OEM and suppliers. Historical information from this performance tracking can be used for future sourcing activities to ensure that the firm has a supply-chain that is tailored for successful deployment and product launch.

Automotive Supply Chain Management solution includes:

  • Supplier database management
  • E-RFx & bidding management
  • Contract management
  • Supplier development, evaluation and management
  • Concurrent design management
  • Component library management
  • Component lifecycle management, reuse and usage tracking
  • Materials reporting
  • PPAP/Supplier collaboration
  • PPAP/PSW (Production Part Approval Process/Part Submission Warrant)

Supporting products: ENOVIA Sourcing Central, ENOVIA Supplier Central, ENOVIA Supplier Representative, ENOVIA Quotation Central, ENOVIA Buyer Analytics, ENOVIA Live Collaboration

Our aim is to have all of our suppliers either using ENOVIA or having access to ENOVIA so that we can collaborate more effectively by giving our suppliers greater accessibility to our live database, rather than a copy of the data.

Darren Cairns Integral Powertrain