Yanking the chain - SA's car industry is running flat out but could trip over supply logistics
Johannesburg, South Africa (PRWEB) December 20, 2006
At the annual Logistics Achiever Awards for 2006 in Johannesburg, South Africa Datascope Consulting, a Syspro value added reseller, was awarded a Silver Award for outstanding achievement in logistics in customized process support for the automotive industry. Hansen's Engineering, one of Datascope's Syspro ERP client's was used as a case study.
The objectives of the Logistics Achiever Award are to recognize professionalism and excellence in the effective application of strategic, tactical, and operational logistics and supply chain management principles, concepts, and practices in South Africa.
An article in the Financial Mail (19th May 2006) entitled "Yanking the chain - SA's car industry is running flat out but could trip over supply logistics" made the following interesting comments pertinent to the supply chain and ERP systems in general:
According to the study, nearly a quarter of companies in the SA motor industry admit they have no idea of their supply costs.
A study by the CSIR found that SA's overall logistics activities - including transport and storage - account for 15,2% of gross GDP. In the US, the figure is 8%.
One question asked companies to estimate the cost of their supply chain as a percentage of sales. Over 20% said they did not know; 37% put the figure at less than 10%.
Most companies surveyed identified IT as their biggest cost challenge, followed by improved planning and forecasting.
Datascope Consulting, a Syspro value added reseller, has worked extensively within the Automotive industry in SA over the past six years and has identified similar issues within the supply chain. These are summarized as follows:
As the OEM's (Original Equipment Manufacturer) become more globally competitive, pricing is driven down lowering margins within the second and third tier manufacturing companies.
OEM's demand on these suppliers is constantly shifting. This shifting demand is forcing the second tier manufacturers to hold larger inventory levels as they just can't afford to stop a large OEM's line.
This continuous shift in demand by the OEM's is communicated via weekly releases to the second tier companies. This vast amount of release information flows from the OEM to their suppliers and in turn, inventory moves from the suppliers to the OEM's. Therefore the key to optimizing inventory is the ability to process these weekly releases effectively and make the necessary informed management decisions. These decisions affect the entire supply chain back to the third and fourth tier suppliers.
To assist the second tier manufacturers in dealing with these challenges, Datascope Consulting has developed a set of Syspro integrated tools specifically for the automotive industry which help reduce inventory holding by assisting with:
- Improved demand visibility
- Reduced planning cycle
- Improved production scheduling
- Release of purchase orders
- Inventory control
- Task automation
The four products, namely EDI Release Import & Compare, Shipping Schedule, Build Schedule and Supplier Release System all compliment the supply chain activities and integrate directly into Syspro. On the inventory flow side of the model, we have the following six products, namely Sales & Operational Analysis tool, Receiving system, Shopfloor systems, Scanning systems, ASN's & RFT's, and a VDA 4902 labelling tool.
This is what some of our clients had to say about these applications:
"Datascope's Shipping Schedule & Build Schedule has simplified our planning process while at the same time optimized our shipments and production. We have experienced significant time savings as well as improved supply chain visibility, helping us to make informed decisions. Overall a streamlined system which will add stability to our growth." - Erik Hansen - MD Hansens Engineering
"Accoustex has found Datascope's Import Release program to be time-saving and more accurate (no finger problems). The Comparison program assists us in making decisions vital to the supply of product to our customers. The ASN program saves us time wasted on the internet making us more efficient. The Supplier Release system helps us in providing information to our suppliers and assists them to supply on time which in turn assists us to delivery to our customers on time." Joanie Meyer - IT Controller Accoustex
"Datascope's shop floor scanning systems unlocked a major difficulty for Warmup. Before we would log all transactions manually on standard forms and once a day hand these over to the accounts processing clerk. A delay of up to 30 hours could occur. Transactions are now instantaneous and our stock information is live and accurate. The actual process is very simple and low key training was all that was involved in training the operators. " Clint Gough - GM Warmup Heating Systems
Datascope's strategic objective is to be the premium partner of IT supply chain solutions within the automotive, warehousing & distribution industries, generating superior value for our customers through integrated Syspro implementations, business analysis and consulting and customised software development within the target market's supply chain.
Datascope employees 12 full time consultants and 5 contractors which fulfill the roles of Project managers, Syspro consultants, software developers, documentation and testing specialists, business analysts, and a General manager to oversee the companies profitability and ensure high levels of customer loyalty. Datascope does not believe in a once off implementation and has over 40 customers that continue business dealing on a regular basis.
For more information log onto http://www.datascope.co.za