Supply chain optimiser to be built for automotive sector

Automotive suppliers, from top to bottom of the tiers, are to get more sophisticated systems to help streamline their supply chain operations – and they’ll run on top of their existing ERP and production management systems. Gedas, the IT implementation and consulting arm of VW which recently partnered with Microsoft Business solutions for its Axapta (formerly Navision) ERP system, is to build automotive-specific functionality on top of Axapta that will include advanced planning and scheduling (APS). Juergen Henrich, who heads up the supply chain management business for Gedas in the UK, believes that many automotive suppliers can’t afford SAP APO (advanced planner and optimiser), and probably don’t need that level of sophistication, but do need APS. “APO would be a sledge hammer to crack a nut… But supply chains are increasingly global so we’ll be developing APS systems for the bottom end of Tier One to Tier Three – companies, for example, that source materials from the Far East and Japan, and have to manage with long lead times.” He insists that if Gedas can develop ‘out of the box’ pre-configured supply chain optimisation solutions – initially based on the firm’s work with Microsoft Axapta, but then able to sit on top of users’ existing packaged ERP systems – automotive suppliers will buy. The firm is due to start a phased development programme in spring of next year, and expects to release systems by the end of 2004 or early 2005. As for price, Henrich says it’s too early to say, but since the entry level for Gedas’ existing MSSJIT (Just in Time messaging) supply chain execution system is around £50,000, that for APS will be roughly the same, depending on functionality, scope, number of suppliers and so on. MSSJIT itself is already live with around 20 Tier One automotive suppliers at about 120 sites, so Gedas has track record. That system takes in EDI and web call-off data for synchronised in sequence delivery of engines and the like, to drive production, packaging and delivery to the OEMs. Gedas says it’s focusing on building out its solutions in this way because it wants to develop its consulting, change management and system implementation role beyond the bounds of VW and VW suppliers. In the UK, beyond VW group, the firm’s most prominent successes have been with Bentley and Cosworth Technology.