Hirschmann Automotive is bringing innovation to how it manages procurement logistics at its global production sites.
The international automotive supplier, seeking a sustainable solution for driving down its inventory levels and costs for special transports, has already migrated to the new IT platform AX4 for procurement operations at its main production site in Rankweil, Austria. The primary objective is to digitalise the supplier management process.
Some 200 suppliers and two carriers, who until now have used email and phone calls to share information along the supply chain, were integrated a few weeks ago into an automated procurement management process using the logistics platform AX4. The standardised digital communication is designed to ensure smooth collaboration between all parties and transparent, reliable procurement management for the plant – from when an order is first placed until the supplies arrive at the plant in Rankweil.
Peter Spalt, Director of Logistics at Hirschmann Automotive, described one of the benefits of AX4: “Today, we can plan inbound shipment volumes and arrival times with precision, since all the transport-related information and documentation is just a mouse-click away and supplier communications are managed through a centralised IT platform.”
Hirschmann Automotive – a manufacturer of connector, contact, and sensor systems and special cable assembles – sees better integration of its supplier network as a means to more efficient communications and significantly lower process costs, reduced inventory levels, and fewer special transports.
Digital transit timetables integrated into the AX4 platform make it possible to determine when the carrier should pick up the consignment from a supplier. Suppliers can also use AX4 to print out standardised goods receipt labels based on Hirschmann’s custom specifications. This accelerates processing times when the goods arrive at the Hirschmann plant.
AXIT, which operates the AX4 platform, had already implemented similar digitalisation projects for many other customers in the automotive industry. This industry expertise and AXIT’s first-rate consulting services were a major selling point when Hirschmann Automotive decided to digitalise its procurement logistics. The cloud-based AX4 solution also offers great flexibility in adapting to existing processes.
Hirschmann Automotive plans to roll out the AX4 solution in Rankweil to its sites in the Czech Republic, Romania, Morocco, China, and Mexico over the medium term and integrate parcel service providers as well.