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Siemens AG is one of the world’s leading technology companies. Founded in 1847, it has operations in more than 200 countries around the world, focusing on electrification, automation and digitization. Among them, the Siemens Intelligent Infrastructure Group (SI) is committed to intelligently connecting energy systems, buildings and industries, improving public life and working methods, and providing customers with one-stop, complete end-to-end solutions, covering the entire line of products, systems, solutions and services from power generation to power consumption.SupplyOn, as a long-term important supply chain partner of Siemens, has been deeply involved in the digitization of the supply chain. With the continuous growth and change of business, Siemens Intelligent Infrastructure Group (SI) decided to replace the original Vendor Managed Inventory (VMI) system with the SupplyOn VMI module, and gradually extend it to the entire China region with two plants as a pilot.Electronic Data Interchange (EDI) connects enterprise information upstream and downstream across Siemens’ entire supply chain, enabling closed-loop information management between Siemens plants and suppliers, improving product availability, reducing the total inventory in the supply chain, and cutting down the transaction costs of both parties.Key factors for the successful implementation of Siemens VMI project:Long-standing, trusting collaborationSupplyOn and Siemens have more than 20 years of working together on supply chain systems. At the same time, a solid foundation for the successful implementation of the project was provided by the strong support and exchange of best practices between the German management of Siemens and SupplyOn.Positive customer promotionIn the trial run stage, Siemens key users tried out the system in production (PRD) environment, as well as simulated the operation by the supplier. During the three-week trial operation training, the heads of Siemens plant key users also became experts in the use of SupplyOn VMI module, thus ensuring a smooth launch of subsequent suppliers.Efficient teamworkAfter the end of the pandemic, the project teams on both sides continued to maintain efficient online communication and collaboration. Although the impact of the pandemic caused a project delay, the calm reaction of both sides has also made this experience extremely valuable.Customer orientationDuring the implementation of the project, the SupplyOn project team fully understood the pain points and requirements of the two Siemens plants, and provided customized solutions based on customer-oriented and best practices.The benefitsTransparent process and efficient collaboration Suppliers can check the inventory and demand of materials in the system, create Advance Shipping Notices (ASNs) in combination with the production schedule plan and the highest and lowest stock level. The customer also synchronizes inventory information.At the same time, the customer can also simulate the supplier's operation to better understand the supplier's inventory situation. In the past, timely communication was required through telephone or conference, now there is no need for additional communication time. Enterprises in the supply chain can collaborate closely based on mutual trust.Real-time information sharingCustomers and suppliers can check the latest inventory status on SupplyOn. This significantly reduces the inventory pressure on upstream suppliers and avoids the bullwhip effect.All relevant companies share their demand, production, sales, inventory, and other information, thus closely connecting upstream and downstream enterprises, reducing the bullwhip effect generated in the process of information transmission, eliminating information transmission errors or additional inventory caused by the safety margin of each party, and optimizing the supply chain.Inventory monitoring and alertingIn case the actual inventory falls below the minimum or exceeds the maximum, the system automatically sends an alert e-mail to notify Siemens and the supplier. This helps to quickly find and resolve the issue.The supplier can also set special attention to a certain material as well as regular replenishment reminders. If the demand fluctuates abnormally, the supplier can get the demand information in time and quickly adjust the replenishment strategy.Customer reviewVMI is based on a partnership of mutual trust that gives supplier the decision-making power for inventory replenishment, thus reducing transaction work such as negotiation and discussion compared to the traditional replenishment model.The advantage of SupplyOn VMI is that it can reduce the bullwhip effect caused by the demand fluctuation of the supply chain through the sharing of the customer's demand information. Thereby, it reduces safety stock, lowers transaction cost, and realizes an efficient supply chain coordination.In this VMI project, we would like to thank the SupplyOn China project team and their German colleagues for helping us to solve the challenges in the project with their professional knowledge background and for providing us with a good project experience. We also look forward to further collaboration with SupplyOn in the future.Pei, Xiaojun — Siemens Shanghai VMI plant project leaderPeng, Weihua — Siemens Suzhou VMI plant project leader
With the D328eco™ aircraft, the innovative German aircraft manufacturer Deutsche Aircraft shapes the future of aviation as groundbreaking, forward-looking platform. Therefore, sustainability is a key topic for the company – not just in the D328eco, but also across the supply chain.A resilient and sustainable digital supply chain is essential for the complex production ramp-up. In this context, Deutsche Aircraft is pursuing the ambitious goal of 100% paperless, fully digital control of the entire supplier network, with partners who share the values of Deutsche Aircraft.In order to successfully implement this strategic goal for its global network of almost 90 suppliers in the shortest possible time, Deutsche Aircraft has opted for the SupplyOn collaboration platform which is well established in the manufacturing industry.SupplyOn as a strategic partnerSupplyOn supports Deutsche Aircraft in digitally managing collaboration processes with suppliers and establishing structured communication. SupplyOn not only offers sophisticated, industry-specific solutions and processes, but also access to a global network of over 140,000 companies, a large proportion of which are dedicated suppliers to the aerospace industry.SupplyOn also recognizes the responsibility to reduce its impact on the world and is highly committed to the principle that business can and must be a force for good. These are the best prerequisites for Deutsche Aircraft to map its supply chain in a sustainable way and electronically from end to end.Step by step to a digitized, sustainable supply chainIn the first step on the way to a sustainable supply chain, the focus was on digitizing the tendering phase in order to select competitive and innovative bidders. The comprehensive digitization started with the involvement of the approximately 30 strategically most important suppliers involved in the development and construction of the prototype. These will supply the top 20 components.In the second step, the final assembly line in Leipzig/Halle will be included in the digitization of the processes. The aim is to expand the group of suppliers until 2026 to almost 90 companies by the time serial production starts.Fully digitized final assembly — 100% paperlessFollowing the digitization of the tendering process, Deutsche Aircraft also plans to optimize other processes in the supply chain – first and foremost joint product development. For this purpose, SupplyOn offers Project Management, a structured, template-based development process in which all phases of development can be handled in a structured manner via one central tool.This way of work is based on the process known in the automotive industry as Advanced Product Quality Planning – in short APQP – which has been tried and tested for many years.The concession process, which can be used to obtain approval for parts that deviate from the specification, can also be handled efficiently and transparently via SupplyOn.This is an essential step towards Deutsche Aircraft‘s vision of working with the highest quality suppliers in the long term in order to achieve excellence and sustainability not only in product development but also in the company‘s overall processes. Our strategic goal is to fully digitize our supply chain. We chose to work with SupplyOn because we know that with this partnership, we can effectively achieve this ambitious goal.Maximilian FahrDirector of Supply Chain, Deutsche Aircraft GmbH About Deutsche AircraftFounded on the proud legacy of Dornier and Germany’s high reputation for engineering, quality and innovation, Deutsche Aircraft is the new specialized German aircraft original equipment manufacturer (OEM).Deutsche Aircraft builds on the legacy and expertise of 328 Support Services GmbH, the type certificate holder for the Dornier 328 aircraft (D328®). Deutsche Aircraft will enable the further development of the D328® platform, leverage future technologies and competencies to produce a more capable, economical and environmentally friendly aircraft and will thus lead the way for the future of aviation in the transition to zero-emission flight.In collaboration with the German government, Deutsche Aircraft is leading the way to a new era of clean aviation and addressing the need to protect our planet to inspire future generations to fly in a way that is greener, safer and more efficient.
Bosch Thermotechnology provides all activities involving heating technology and hot-water solutions. Bosch Thermotechnology has a number of major international and regional thermotechnology brands and supplies people with state-of-the-art technologies worldwide. In times of scarce energy resources, the topic of efficient heat generation is of existential importance. Innovations from Bosch Thermotechnology have been setting trends for centuries.As a buyer company, Bosch Thermotechnology is constantly exploring the efficient digital collaboration, in order to realize the fastest delivery speed, lower logistics cost and higher product quality throughout the whole supply chain.Vendor Managed Inventory (VMI) is a management strategy that aims to obtain the lowest cost for both the buyer and the suppliers, by setting the maximum/minimum inventory level in a mutual agreement to let suppliers manage the inventory. SupplyOn's VMI provides Bosch Thermotechnology in China with a mature system to address these challenges. With the completion of the project in August 2022, an important milestone has been reached that represents a major leap ahead for Bosch's information management.End-to-end VMI managementBefore the SupplyOn VMI project was launched, Bosch Thermotechnology and its suppliers in China faced some problems, such as missing or delayed information at logistics control points, or supplier performance monitor difficulties. The VMI solution provided by SupplyOn helps Bosch Thermotechnology China to recognize the existing and potential business pain points, and then offers reasonable actions.End-to-end Management: SupplyOn VMI receives master data and business data from the ERP. Suppliers creates planned receipts and ASN on the SupplyOn platform, and send the delivery information back to the ERP.Inventory Monitor: According to the daily inventory, demand and planned receipt, VMI automatically calculates the projected inventory. Once the actual or projected inventory exceeds the maximum or minimum inventory level, the system will send an early alert to both Bosch and the supplier to notify the supplier of timely replenishment and explain the reason to Bosch.Alert management: Apart from inventory alerts, the VMI system also provides ASN alerts. When the actual delivery quantity and arrival time are inconsistent with the ASN's planned quantity and time, the system will also automatically send the alert email to notify Bosch and its suppliers to find and solve the problem in time.Replenishment Method: Both Inventory Projection (IPR) and Replenishment Planning Monitor (RPM) are supported. For the IPR process Bosch sends an inventory report and gross demand messages. Based on this information the projected inventory is calculated and displayed over time. For the RPM process Bosch sends inventory report messages and the suppliers create the ASNs based on today's inventory and agreed Min/Max inventory level.Supplier Performance Monitor: Development of a performance assessment form exclusively for Bosch, with which users can analyze the VMI consignment supplier lifecycle based on suppliers, time range, product categories and other dimensions.Key factors of project successThe right suppliers and materials are critical elements for the success of a VMI project.The suitable suppliers:Supply Chain Management Capabilities: For suppliers who have little production capacity or poor production plan execution ability, even if the SupplyOn VMI automatically calculates the replenishment quantity and delivery time, suppliers still cannot follow the process.Long-term partnership: Consignment suppliers typically have a close relationship with Bosch. When consignment suppliers implement the VMI system, they will be responsible for the inventory management and ownership. So Bosch has the obligation and confidence to provide the consignment suppliers with core business data such as demand and inventory.The suitable materials:Relatively stable demand: when buyer's demand fluctuates greatly, the bullwhip effect is then produced, which will cause great pressure on the supplier's replenishment plan.High demand frequency: For products with low demand frequency, using Excel to manage supplier replenishment has the higher input-output ratio than using VMI.The benefitsEnd-to-end transparency of supplier inventory managementReduced transportation costsEarly warning of inventory riskCost savings through lower inventory levelsCustomer reviewThe SupplyOn VMI solution is an intuitive supply chain platform based on a global business network. This provides maximum support for Bosch Thermotechnology and its suppliers in a more efficient digital collaboration.At the same time, we also want to thank the SupplyOn project team. During the implementation of the project, both teams communicated and collaborated closely, overcame the impact of the pandemic and the difficulties of the project. The entire team worked in a very professional and dedicated manner.— WANG Yukun, Project Manager, Bosch Thermotechnology China
