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Supplier Community Event: Customer voices and supplier feedback on Transport Management

The Supplier Community Event on the topic of Transport Management was a complete success. Valuable tips and tricks paired with practical insights from Bosch Building Technologies and ZF Friedrichshafen — discover all the highlights of the event here. As Manager for Supply Chain Collaboration and Transport Management, Martin gave the opening speech of the event. He pointed out the benefits for suppliers when using the solution: seamless communication centralized in one place and traceable for both sides at all times. This is because the demand and ordering processes intertwine:almost all FPAs (Forwarder Pick-up Advices) are based on previous demand notificationsand the ASNs (Advance Shipping Notification) are then based on the FPAsThis eliminates both media breaks and double entries. Insights from customer voicesChristian Schwab (Head of E2E-Logistics) demonstrated the comprehensive and successful use of the Transport Management solution at ZF Friedrichshafen: both inbound and outbound transports are managed centrally, regardless of the type of transport — whether land or sea freight. ZF relies on the cooperation of suppliers and a holistic approach. Around 50 plants are currently fully connected to the solution, handling around 1,000 shipments per day. Impressive figures, but there is more to come: Christian is planning further expansion towards a seamless, worldwide usage.Alexander Radtke (Vice President Logistics) presented the use of SupplyOn Transport Management at Bosch Building Technologies - from the initial motivation to the planning and strategy for 2024: Nowadays, the solution is used in inbound and resource planning, in manufacturing as well as to improve the ecological footprint. Alexander incorporates supplier feedback into further solution development. On request, the booking of transports was recently optimized and simplified for suppliers. The goal for 2024: 100 % coverage of inbound transport.Life hacks around Transport ManagementIt wouldn't be a Supplier Community Event if tips & tricks for even more efficient use of the solution weren't also on the agenda. Daniela and Matthias ran through typical scenarios from everyday supplier business and revealed helpful life hacks on…Using views and filters sensiblyCopying, cancelling or deleting FPAsSetting up warningsPrinting labelsAutomation with EDISpeaking about effective usage, Andreas, Manager for EDI, presented the benefits and requirements of an EDI (Electronic Data Interchange) integration. Here, one system sends data automatically to another, avoiding manual data entry. This saves time and effort and is also less prone to errors. New feature, yes or no? Suppliers votedWho could give a better outlook on the further development of the solutions than Mirjam, the Product Manager herself? Firstly, she presented the planned new functions. She then asked the audience to vote on whether an address book feature for carrier data would be helpful and should be realized. The majority of the community voted in favor of introducing the function. We would like to take this opportunity to thank everyone for taking part in the poll and look forward to incorporating user feedback into the development of the solution. However, it is not only during the Supplier Community Events that suppliers have the opportunity to contribute to product development. As Mario, founder of the Supplier Community and Head of Supplier Management, reported, suppliers can currently vote for the next feature to be implemented in the Supplier Forum.We would like to thank everyone involved in this event for their contribution to making it a complete success and are already looking forward to the next one!

Industry News

Aviation Forum 2023: navigating the future of aerospace

Held on December 5, 2023, the Aviation Forum 2023 showcased the industry's resilience and determination, commencing sharply at 9:00 am. Despite adverse weather conditions that caused numerous flight cancellations, over 1,300 attendees, 130 exhibitors, and 70 speakers converged for the two-day event. Beyond the impressive numbers, the event quality was also reflected by the insightful contributions and discussions which encapsulated the current state, challenges, and opportunities of the aerospace industry.In essence, all the discussions revolved around a common goal: shaping the future of aerospace.Ramping up: a multifaceted challengeThe aerospace industry is gearing up for a substantial increase in production, targeting approximately 100 aircraft per month. Although international traffic is approaching pre-COVID levels, Airbus and its suppliers face a multifaceted challenge amid a poly-crisis, encompassing issues like interest rates, climate challenges, and material shortages.Managing the ramp-up is not a singular challenge but a poly challenge, given the myriad of interconnected issues.Collaboration emerged as a pivotal theme, recognizing that 80 % of the industry's added value stems from procurement activities. Cooperation between different tiers and OEMs is deemed crucial for future success.Collaboration: unlocking supply chain efficienciesJürgen Westermeier, CPO of Airbus, emphasized that collaboration is key to enhancing supply chain efficiencies. Airbus introduced four major initiatives:ZeroM: aimed at reducing the impact of supply chain disruptionsAXEXX: focused on increasing competitiveness and reducing costsAeroExcellence: a cross-industry initiative to mature supplier industriesNextEra: aiming to secure industrial continuity through collaboration and data leverageSustainability: the future license to operateSustainable Aviation Fuel (SAF) is crucial for its sustainability efforts, but the industry is also exploring alternative energy sources, such as liquid hydrogen (LH2) fuel cells and GKNA LH2 concepts.Holistic sustainability requires the involvement of all stakeholders: suppliers, OEMs, operators, regulators, and political and business leaders.In addition to alternative energy, industry efforts include recycling materials, exploring eco-friendly alternatives, reducing buffer stocks, and leveraging data and technology for a greener future.Challenges and opportunities aheadOne of the major topics for the future is the concept of a "digital material passport". Efficient systems and digitization will be essential for tracking materials throughout the aircraft lifecycle.Another future topic are environmentally friendly materials such as green aluminum or green steel. Yet industry acceptance is still at an early stage for these potential alternatives.Reducing unnecessary buffer stocks is crucial not only for cost but also for sustainability.Collaborative, transparent, and open use of data and technology can drive a greener future, too. But the industry grapples with the challenge of building trust and taking decisive action. In conclusion, the Aviation Forum 2023 illuminated the path forward for the aerospace industry, emphasizing collaboration, sustainability, and technological innovation as key drivers for future success.

Inside

Health and success: tips from Thomas

As Vice President, Thomas Bickert is responsible for the SRM & Portal Solutions division at SupplyOn with over 35 employees. His department designs and develops integrated solutions for successful supplier relationship management - supplier management, source-to-contract and supplier quality management. In the context of the SupplyOn Health Weeks, we asked him for personal insights and tips on health and work-life integration. Enjoy the reading! How important s health to you and how do you personally integrate time for your own well-being?Health is an important issue for me, particularly because I expect to keep my job for longer. I want to stay fit for a long time. Not only for me personally, but also for my family. However, I am not someone who goes to extremes in terms of sports and nutrition. I try to eat balanced and do sports on a regular basis. But I am not a top athlete and do not exercise daily. I try to maintain a healthy balance.How has your own engagement with health evolved during your career and what experiences have strengthened your focus on this important issue?I realized over time that I can't just perform. At some point, you must pay attention to signals from your body and take them seriously if you don't want to struggle with any ailments on a permanent basis.In my experience, every person, every body, has certain stress valves (e.g. back problems, knee pain, infections). When things get too stressful, they react. Probably everyone knows these points for themselves. I know mine. This is where you need to actively deal with them and decide. Do I want this permanently? If not, you need to adjust your behavior.A few years ago, these valve points were the determining factor for me to rethink. So, I started asking myself questions: What am I changing? What am I actively modifying? Where do I set limits?I implemented my personal answers, and I'm now living a good life with them.Certainly, you often have a busy workday and deal with a high workload. How do you manage to switch off from your daily work routine and maintain a healthy work-life balance?Time and self-management is essential for me. This personally helps me a lot, and I always try to optimize and develop it for myself. This begins with perception. I start to focus on the contexts in which I'm moving. Am I currently in the context of work? Or in the context of family, for example?Each context has specific rules for me. In the context of work, I focus 100% on my work and exclude my private life. This also means, that in my private life, I focus completely on my family life. For each context, it is very important for me being able to rely on managing things.For me, an important learning is to recognize that I can't work through everything. Because that will never happen. At some point I said: There will always be work for the next day and I will never get my inbox down to zero.In this process, I believe it is important to develop a method or approach that offers a feeling of confidence and to find the right balance between personal ability and the expectations of the company or team. This self-organization leads to satisfaction, self-affirmation and prevents negative stress.How do you support your employees in improving their own work-life balance and taking care of their personal well-being?I trust in the self-responsibility of each individual and in the fact that my employees will take measures and give me signals if there is an imbalance. Taking this into account, I see it as my responsibility to recognize and respect the limits of my employees and not to influence them negatively. For example, if employees tell me that they pursue a hobby at certain times during flexible working hours and cannot be reached at that time, I respect that.It is not part of SupplyOn's culture to expect people to be available outside of regular working hours. We don’t have a - I write an e-mail at 9 p.m. in the evening and expect a response by 7 a.m. the next morning.I communicate this actively. It is even more important to demonstrate this in your own behavior.What advice would you give (younger, less experienced) employees about setting boundaries and reaching that balance you named?It is very important that you already have the understanding that this is a process. A highly individual one. No one can dictate that. In my opinion, there is no pattern, and a healthy balance will not appear by accident. Everyone needs to figure that out for themselves: Some people need more to be satisfied, others less.One thing that helped me personally was confidence. Trust in my own performance. Trust in my own assessment of the fact what I'm doing is good. This confidence is also generated through feedback.I would recommend getting feedback proactively by the organization. Is this how it works? Is this what is expected of me? Do they expect more? And not just to reflect on this with your manager, but also with colleagues or customers.Be confident to actively ask for feedback, managing your own expectations and building trust as a result. Recognize: What I'm accomplishing is enough. Or recognizing that not so much is expected of you, but you are putting pressure on yourself and stressing yourself out.Colleagues may also be surprised of how much you can achieve and perform during your available time, and you realize being able to slow down. It's worth making that adjustment and investing in your own self-confidence! Thank you, Thomas, for the great insights and tips! Are you interested in an employer who cares about your health? Learn more about our benefits and find out about our job offers.

Industry News

Leonardo extends AirSupply to the entire supply chain and kicks off second phase of Leap

From 2018 to 2021, the value of production in the Leonardo-led supply chain grew by 14 percent, from 21.4 to 24.4 billion euros. How was this possible? Leonardo is a large defense and aerospace company, a sector that in Italy includes other major players such as Thales Alenia Space, Avio Aereo and Macaer. The company led by Roberto Cingolani, just in 2018 initiated the important Leap (Leonardo Empowering Advanced Partnerships) program with the dual purpose of creating a digitally integrated ecosystem and promoting advancement in terms of innovation and resilience of strategic suppliers. Quality, cost, time, and technology utilization targets were defined. Then, Leap evolved: sustainability targets were added, with Leap - Partnership for Sustainability. But all this would have been difficult to achieve without AirSupply.But what is AirSupply? It is a powerful tool for purchasing departments (provided by SupplyOn, a company with headquarters in Hallbergmoos, near Munich, but also with offices in China and the United States). It is a shared industrial Cloud platform that optimizes more than just the working relationship between the manufacturer and suppliers, but also communication with suppliers in the downstream supply chain. It enables suppliers not only to connect and receive purchase orders; but also to change, within certain limits, delivery times and quantities. Above all, the platform is characterized by high visibility: suppliers can see if there is a decrease in demand from Leonardo's customers, and based on that they can adjust their raw material purchases. If, on the other hand, demand is robust, they can make longer-term purchases, which result in financial savings. This has increased the resilience of the supply chain, and allowed Leonardo to shorten lead times.87 percent of the 4,000 suppliers using the platform are SMEs. For example, Lombardy-based Logic (active in the development of avionics and electromechanical subsystems and components); Marche-based Civitanavi Systems (which makes inertial navigation and stabilization systems); Apulia-based Manta Group (which produces aerostructures for both fixed and rotary wings); and Campania-based Ala (active in the distribution and supply of advanced logistics services). Leap's next step? That of working on CO2 emissions. The context is still the Partnership for Sustainability, but the idea is to reduce the environmental impact of companies. That is the challenge for the next few years, and it concerns, of course, the whole supply chain. Progress toward the targets will be measured scientifically.Giacinto Carullo, Chief Procurement & Supply Chain Officer at Leonardo, talks about all this.What information systems do you use for dealing with your supplier network? What technologies?We use the AirSupply system, a powerful procurement management tool used by large Groups such as Airbus, Thales, Safran, Dassault, Liebherr, Premium Aerotech and Daher. It was to harmonize and standardize collaboration with suppliers to have a common digital platform and procurement process within the group. AirSupply enables high traceability, responsiveness and inventory control in our supply chain. First, it was piloted, for indirect spending, by Leonardo Global Solutions; then, for direct procurement, by the Aircraft and Aerostructures divisions; and finally, by the Helicopters and Electronics divisions. Essentially, it is a Cloud portal: suppliers connect and receive purchase orders. Most importantly, they have visibility into confirmed orders, with the ability to modify them.What exactly does the ability to change confirmed orders mean? Within what time frame can they do so and to what extent?The time frame depends on the type of supply, e.g. for products within the 12-month lead time, typically the first two to three are "frozen," followed by three to six "flexible" months, during which, in agreement with Leonardo logistics, it is possible to change the quantity - by 10%, 15% - and the delivery date. There are then several additional "forecast" months, in which the supplier sees commitment, but this does not necessarily result in an order.And who benefits from not translating a pledge into an order?In the AirSupply system, when there is a decrease in our customers' demand for Leonardo's products, our suppliers see it. As a result, they can make their own calculations and, for example, buy a smaller amount of raw materials that they need to make their components. Conversely, this long-term visibility allows suppliers – when they know demand is intense – to make long-term purchases, which generally saves them money. All of this has the dual effect of increasing supply chain resilience, especially in times of stress; and allowing lead times to be shortened.Does this mean that suppliers must adopt AirSupply?The system is a KPI in our Industrial Sustainability Roadmap. In short, AirSupply adoption is a key driver for supply chain digitization and high-level procurement. Our goal is to use the portal for more than 80 percent of supplier transactions. More than 5 thousand suppliers are currently using it, including more than a thousand in "full" digital integration mode. It means that the most important suppliers are already operating on the platform, which helps to create a digitally integrated and synchronized supply chain ecosystem.How does this fit in with Leap - Leonardo Empowering Advanced Partnerships - a program launched in 2018?Leap is a program to transform and accelerate the development of the supply chain. It is designed as a constantly evolving model. The initial point, but also the "key" point, is that it is intended to increase the level of partnership. The excellent supplier becomes a long-term, "stable" partner, and consequently gains visibility in the system, and enjoying the certainty of the relationship can invest in its own business and growth (including technological growth) contributing to its competitiveness, ours and that of all the other players involved. Partners are called upon to increase quality and must be excellent in operations. This is first and foremost in our interest. Our CEO, Alessandro Profumo, has repeatedly stressed this; Leonardo cannot be sustainable and competitive if its supply chain is not: the quality and safety of the final products depend on it, as do the flexibility and ability of the company's business model to adapt to technological challenges. What we offer our suppliers is a long-term perspective of cooperation, putting them in the best conditions to be able to plan and pursue their investments over the long term, thus also supporting their ability to compete independently in the market. Supplies to meet the fulfillment of our contracts can in fact last for as long as 20 years; it is good for the supplier to remain in the market for an equivalent period, to provide the components and services essential to us and our customers. AirSupply strengthens the partnership and makes it more streamlined and secure. Moreover, in 2021 Leap underwent a major upgrade.What update have you made to Leap in 2021?The program has evolved into Leap Partnership for Sustainability. The dimensions of sustainability have been added to those of quality and technology. Now partners are required to address security, health & safety, environmental and social responsibility, risk management. And they must share their strategies in this regard. In short, in 2021 we started building our ideal partner. Starting with an assessment.Did you carry out an assessment in 2021?Yes. The assessment involved 500 suppliers, the most important ones, and covered something like 200 KPIs. Already the fact that they were confronted with all these dimensions was important, for them, because it showed them the path to take by involving the staff. However, after "measuring" the degree of maturity of the partners on the dual quality-sustainability front, we began the maieutic approach.What does the maieutic approach consist of?We guided the 500 partners along the growth path, helping them to achieve their goals. With necessarily different actions from each other, based on the weaknesses of the partners manifested during the assessment. Some showed greater difficulties on processes, some on other aspects. In any case, we outlined a plan with two main objectives.What are the two main goals of your supply chain growth strategy?First, that of ensuring the strength and sustainability of the supply chain. Precisely because suppliers are called upon to provide us with services and components for periods of up to 20 years, they must be able to continuously improve their performance – the bar of objectives is continually being raised. Second, that of creating a significant number of Tier-1s (first-tier suppliers; typically, they know the strategies of the OEMs, know what technologies the OEMs are investing in, and are aware of their projects. In some cases, based on this information, they direct the whole supply policy and regulate its flows – note of the editor) and Tier-2 (basically specialists, who develop individual components on the basis of know-how established over the years – note of the editor) of international dimensions. Moreover, we are giving up supplier exclusivity. The fact that they have a strong partnership with us does not mean that they cannot or should not work with competitors. If they are good for us, they will be good for Airbus, for example. And in the marketplace they become more sound, more competitive and more resilient, helping to build a positive-sum game. All this merely increases the sustainability of our supply chain.What is the next step?The next step is to work on CO2 emissions. The context is still the Partnership for Sustainability, but the idea is to reduce the environmental impact of companies. That is the challenge for the next few years, and it affects, of course, the whole supply chain. Progress toward the targets will be measured scientifically, because Leonardo is part of Sbti (Science Based Targets initiative), a global initiative established in 2015 (by a collaboration between several organizations, such as the Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute and the World Wide Fund for Nature – note of the editor) to help companies set emission reduction targets in line with climate science and the goals of the Paris Agreement. The metrics used are very precise. The goal, for Leonardo, is a 40 percent drop in emissions by 2030.Does your supply chain generate a lot of emissions?Actually, the largest share of emissions is certainly downstream, among those who use, for example, our helicopters or airplanes. We have few energy-intensive factories; when it comes to the aerospace industry, this is equivalent to 2 percent of global emissions – but 1.5 percent is due to those who do aviation. So almost all of it.Among other partnership activities, you help your suppliers from a financial perspective. How does that work?Here, the "how" is very important, because it makes a difference. Results are generated or not generated because of the "how." Specifically, we have made agreements with seven banking groups to do supply chain financing. For example, we as Leonardo enjoy special factoring conditions (the assignment of credit – note of the editor): it was agreed that they should be extended to our suppliers. These moreover can get advances not only on invoices, but also on Leonardo's orders. For them it is a great help: since the lead time lasts 12 months, they must expose themselves financially; if they can get financing from banks on good terms, it is easier for them.And why did the banks agree to it?Because banks are familiar with our supplier program, and as a result they think that in the case of our suppliers we see a decrease in credit risk.There were 67 key suppliers of Leonardo, with a turnover of 1.3 billion euros and a total of 7,500 employees, who participated in the Elite-Leonardo Lounge program developed with Elite di Borsa Italiana. What did it consist of?In a development path aimed at entrepreneurs and top managers of supplier companies to accelerate their growth by facilitating access to capital, network, and key skills. Through it, companies were able to create a long-term strategic business plan and shared it with Leonardo. A key step: by overlaying our plan with theirs, we were able to assess whether the suppliers were heading in the same direction as us, especially in terms of technological development. What's more, about 50 M&A transactions have occurred in our supply chain; 70 percent of these involve companies that have gone through the Elite route. It means that they felt the need to strengthen themselves in terms of size, and this is good for us; it is also good for them from the point of view of competitiveness.What are the current obstacles for Leonardo's supply chain?For Italian suppliers, the problem is to be able to be competitive in the European context. As for the average size, these are small companies; as for the level of digitalization, it is good in relation to the average Italian company, but it is not yet at the level of the European average. In short, these companies need to be able to make a major leap forward. For this, a great product is not enough: you need planning, management, investment, long-term vision. And you must work on all these dimensions at the same time. It is not easy, but it is certainly not impossible. This interview by Marco de' Francesco has been published in Italian in the online magazine Industria Italiana: https://www.industriaitaliana.it/leap-leonardo-airsupply/

Inside

Navigating the bustling metropolis: a business trip to Shanghai

Stepping off the plane into the bustling metropolis of Shanghai, I could feel the energy and excitement in the air. I embarked on a remarkable journey to one of China's most vibrant and economically significant cities. It is home to numerous multinational corporations, financial institutions, and tech giants. During my trip, I had the opportunity to progress the project for “Transport Management Outbound for ZF China” for two pilot plants and support my Chinese colleagues with an internal application training. Together with the ZF local colleagues and Qianqian Shan and Xiaowei Zhang from SupplyOn Shanghai we clarified the detailed process steps and worked on the specification of China-specific requirements for Transport and freight cost processes to guarantee a smooth implementation. During those two weeks, I could experience a better understanding for the Chinese colleagues, the project conditions, and the local network. The SupplyOn China colleagues made it easy for me to feel welcome and supported me with whatever I was willing to do.They regularly made sure that I was tasting every food worth to try; During lunch we had a lot of different dumplings, buns, noodles, soups, and a lot of milk tea and snacks. We also went for Hotpot one night – that was definitely one of my culinary highlights! Besides that, I was lucky to be in China for Mooncake Season and tasted a lot of different flavors, colors, and sizes of Mooncake. (Moon festival was shortly after my departure on September 29th, 2023).Moreover, I was invited by Hong Rupeng to travel to the deep-water terminal of Shanghai Seaport for one sunny Sunday. We took the trip via the 42km long bridge to the island where this terminal is located and admired a huge number of containers waiting to be loaded and checked out the destinations of a few smaller ships with the vessel tracker on site. Although the container traffic seemed to be rather calm on that day, the port scenery was highly impressive. The Container throughput of Shanghai International Port (Group) is more than 40 million TEUs (Twenty-Foot Equivalent Unit) per year. Thanks again for bringing me to the biggest port of the world!I appreciate the very warm welcome, dedication and hard work making this trip a memorable and productive experience. Your kindness and thoughtfulness made a significant difference in my experience, and I am so grateful for your hospitality to make me feel comfortable and valued.Next to the fruitful training and brainstorming sessions, we had a lot of unexpected daily adventures, like a spontaneous dancing class in preparation for the SupplyOn Shanghai 15-year birthday celebration, or a visit at a Chinese hairdresser, what added a special dimension to our time. I also had the chance to take part in the “Bobing” game, what is a special dice game from the region the SupplyOn China Head Zixi Zheng comes from. It is played only in mid-autumn and heavily focusing on rolling the dices to get as many fours as possible to be lucky next year.These are some for the lasting memories from the business trip. I gathered profound appreciation for the modernity, culture, and culinary delights of this dynamic city. I am confident that the insights gained, and strengthened connections during this trip will continue to benefit our projects and collaborations in the future.So, I left Shanghai with a sense of awe and admiration for this captivating city, and I can't wait to return for another adventure.

SCM Insights

Invoicing in China: how to successfully transform to Fully Digitized eFapiao

Companies that want to do business in China and work with local suppliers through their local office quickly realize that invoicing is much more complex than in Western Europe or North America. It's time-consuming, labor-intensive and has many unique requirements. In the future, this complex process will be completely digitized—and somewhat simplified.Fapiao & Golden Tax: an introduction to Chinese invoicingBut let's start at the beginning: In China, domestic invoices cannot be sent directly from the supplier to the customer. Instead, special tax hardware is required, such as a so-called tax control USB disk. In some cases, paper receipts are also required. Most importantly, companies must use state-certified providers as intermediaries and pre-register their invoices with the central tax authority using the Golden Tax System (GTS) software.An invoice issued and registered with the tax authority is called a Fapiao. In the classic Fapiao process, suppliers first submit invoice data to the Golden Tax System. These invoices are pre-validated by government-certified vendors to ensure, for example, that all tax data has been entered correctly.An invoice issued and registered with the tax authority is called a Fapiao. In the classic Fapiao process, suppliers first submit invoice data to the Golden Tax System. These invoices are pre-validated by government-certified vendors to ensure, for example, that all tax data has been entered correctly.After successful validation, the system assigns a unique number to each invoice. Once this step is successfully completed, suppliers can print the invoice data with the assigned invoice number on a Fapiao paper receipt and send it to their customers. These Fapiao receipts are special formatted papers with a seal and are available in blocks from the State Taxation Administration (STA). To issue an invoice, suppliers must obtain a sufficient number of Fapiao paper blocks in advance.If this procedure is not followed, suppliers will not be allowed to issue VAT invoices.On the customer side, the Fapiao document must be automatically recorded, evaluated, and compared with existing data in the GTS upon receipt. This is a tedious, error-prone, and cumbersome process that often requires a lot of manual verification.The following video explains the old paper-based process in more detail: From paperless to "Fully Digitized eFapiao"Some time ago, the paper-based Fapiao process was transformed into a paperless version, although this is not widely used in China. In the paperless process, the procedure remains the same, but the paper-based Fapiao receipt has been replaced by a proprietary digital data file. However, the cumbersome process with all its drawbacks has not changed.The Chinese government has therefore decided to convert the classic Fapiao process, whether paper-based or paperless, into a fully digitized version, the so-called "Fully Digitized eFapiao". This is based on a new central platform where invoices can be exchanged between suppliers and customers in a fully digital format.To comprehensively test the new Fully Digitized eFapiao process, the Chinese government launched a pilot in 2021 in several major cities and regions, including Guangdong, Shanghai, Foshan and Inner Mongolia. Meanwhile, the pilot operation has been extended to further regions.Here are some details about Fully Digitized eFapiao:Fully digitized: Fully Digitized eFapiao is a new type of electronic invoice. It has the same legal meaning and use as the conventional paper Fapiao, but without the paper.No copies: Unlike the traditional Fapiao, copies are no longer necessary. This greatly simplifies the process. The paper-based process involved multiple copies of the Fapiao receipt.Reduced invoice size: Only 17 data fields are required.No pre-registration: No need to purchase paper blocks in advance. The Fapiao invoice number is assigned directly by the central platform.No special tax equipment: Enterprises do not need to purchase special tax control equipment such as USB disk, tax control USB disk and Tax UKey in advance. Instead, they can issue the Fully Digitized e-Fapiao directly through the national e-invoice platform.Diversified input channels: In the current pilot phase, it is possible to issue invoices directly through the central platform. Soon, this will be extended to digital terminals and mobile applications.Reduced workload: Scanning and OCR processes are no longer necessary on the recipient side, as paper and PDF invoices are no longer required.Always up-to-date with SupplyOn InvoicingSupplyOn Invoicing has supported the classic Fapiao process for several years. This applies to both the paper-based and paperless versions. The new Fully Digitized eFapiao process is also supported by SupplyOn: All suppliers from the pilot regions in China can also use SupplyOn Invoicing to work with their customers in a tax-compliant manner.The advantage: Invoices are checked and validated in advance by SupplyOn against order or other demand data. If there are any errors or discrepancies, corrections can be made before the invoice is submitted to the tax authorities. Time-consuming cancellation or credit processes are a thing of the past. Suppliers can rest assured that invoices meet customer requirements and have been verified against country-specific requirements. In return, purchasing companies only receive invoices that have been validated in advance by SupplyOn Invoicing and match the purchase order or goods receipt. This allows for direct posting without any manual effort.As a first step to support the pilot phase of Fully Digitized eFapiao, SupplyOn has provided the pilot suppliers with the successfully validated invoices in a new download format. This format is accepted by the new central platform and can be directly uploaded.From now on, pilot suppliers can also use SupplyOn Invoicing to transfer the validated invoice data directly to a local, government-certified provider and thus to the central platform. A manual download is no longer necessary. We are also working on further simplifying the invoicing process for purchasing companies.Our customers can rest assured: By using SupplyOn Invoicing, they are always up to date with the latest developments in China, as we promptly implement all relevant Chinese government requirements in our solution.

SCM Insights

Digitizing Repair Orders: a game-changer for efficiency and customer satisfaction in the aerospace industry

In a dynamic industry like Aerospace and Defense, where precision and efficiency are paramount, every process counts. And one of these processes is the management of non-operational parts that cannot be installed in an aircraft or helicopter due to a need for revision, repair, overhaul, or the like — the so-called Repair Orders & Overhaul (R&O).Leonardo, a major aerospace, defense and security company, set out to fill the gaps to efficiently manage the specifics of this process, seamlessly integrated into a digital platform. But what really sets this endeavor apart is the idea of community. As part of the BoostAeroSpace community, Leonardo and another major aerospace OEM joined forces to transform the repair and overhaul ordering process for the benefit of the entire community as a pioneering co-leadership initiative.We sat down with Angela Marotta, Project Manager for AirSupply at Leonardo, to learn more about this extraordinary initiative and how Leonardo is benefiting from the new process:Repair Orders — a critical process in the aerospace industryAngela, could you please describe the role that repair orders play in Leonardo's business, how they have been managed in the past and what the limitations have been?The Repair and Overhaul process is a critical part of our strategic management and our customer services business, especially in our Helicopters and Aircraft divisions. We handle around 7,000 Repair Orders for Aircraft and 32,000 Repair Orders for Helicopters (for 1 year), involving about 600 suppliers. The process has four key steps: publishing, collaboration, acceptance, and execution of Purchase Orders (POs).While it all boils down to PO management, the first three steps have some unique characteristics when handling POs for R&O. These specifics were not fully covered by our previous solution. As a result, we had to manage some or all of these process steps outside of the portal.With a new and dedicated R&O process we wanted to increase the traceability of logistical movement of unserviceable parts, track negotiations, incorporate supplier quotations and enhance the status visibility of the R&O flow in general.It's fascinating to see the scope of the challenge, Angela. Why did Leonardo choose SupplyOn to address these issues?Our decision is in line with our company-wide strategy to use a single portal to collaborate with our suppliers on supply chain processes. And since 2017, this portal has been AirSupply by SupplyOn, the leading solution in the aerospace industry.Joint project for an industry-wide issueHow did this initiative to transform the management of Repair Orders become a joint project with another major aerospace OEM?When we selected in 2016 and implemented AirSupply to harmonize and advance our supplier collaboration on a group level, we also joined the BoostAeroSpace community in 2017. All community members are like-minded, innovative aerospace companies using this comprehensive, industry-specific supply chain solution.So, naturally, we discussed with both, SupplyOn and BoostAeroSpace, how we could extend AirSupply to support this process, both for our existing suppliers and for new ones coming on board. After all, the Repair and Overhaul process is a critical aspect of aerospace and defense. It follows the same rules for customers and suppliers across the industry. Customer support and service are paramount, and efficiency is essential for all.During these discussions last year, in 2022, another major aerospace OEM expressed great interest in transforming and integrating this process into AirSupply. We decided to work closely together on requirements, solution design, cost and testing. The very first co-leadership project among the BoostAeroSpace community members was born! Our common goal was to add value to the platform by implementing this key functionality for the aerospace and defense industry.For us at Leonardo, this project was a great opportunity to demonstrate our community and collaborative spirit: Internally, by aligning all of our business units around the request and identifying common requirements. And secondly, within the community, to verify how such a pioneering co-leadership initiative can become a great success. What are the essential elements required of a successful co-leadership project?Transparency in sharing information about common processes is key. But you also need an open-minded approach to solution design and a deep understanding of the impact of the process on all internal stakeholders. Last but not least, continuous collaboration with the procurement and customer support departments across all business units was critical to the success of the project.Project progress at LeonardoWhat is the current project status at Leonardo?The Repair and Overhaul Process solution has been released on AirSupply in April 2023 and is already up and running for the Helicopters Division since June 2023. We're currently working on the integration with backend of the Aircraft Division backend. This is set to be released in November 2023. The integration with the Electronic Division is then planned for 2024.Leonardo's onboarding policy is to enable all existing suppliers to use the new process and to take the opportunity to onboard new Repair Order suppliers.Can you tell us how this project has helped to address your initial issues, Angela?With the new Repair and Overhaul process, Leonardo aims to accelerate procurement time-to-market, ensure on-time payments, and improve cost efficiency in our Customer Services business. It aligns with our company's success drivers, which include digitalization, traceability, efficiency, standardization, and supplier collaboration. And what is next for this project, is there still work to be done?The solution released in April 2023 is only a first version. We have additional requirements planned for development in 2024. In the meantime, our goal is to expand the supplier perimeter and extend the solution to all Leonardo divisions.Community collaboration as driving force for innovationHow do you think you can influence your fellow community members to adopt this process in their organizations? What are your plans here?All BoostAerospace community members meet every year in a different location for a “Customer Day”. At last year’s Customer Day in Paris, we jointly presented our initiative together with the other participating aerospace OEM. During this presentation, we demonstrated how this solution enhances the AirSupply suite of functionalities.Technically speaking, we have implemented a set of enhancements that complement the existing Purchase Order process, allowing users to access dedicated screens to efficiently manage Repair Orders.This way of working has proven that new processes can be implemented efficiently while minimizing the risks of regression to the existing core process.Angela, looking back, how vital is collaboration in the community for a successful solution?Collaboration with the community and with SupplyOn is the key to success for Leonardo. The exchange of information, comments, and different perspectives ensured that we found an efficient and smart solution.Most importantly, this project has been a valuable lesson for the community in terms of working together on project management and addressing requirements in innovative ways. Are there additional points you would like to see the community tackle in the future?Yes, we'll be discussing additional requirements related to report management for the Repair and Overhaul process and to fine-tuning the solution for quote management. One last question, Angela: do you have any other plans for how you'd like to develop supply chain management at Leonardo that you can share with us?Absolutely. At Leonardo, we believe in sharing our needs with the community to further improve the platform. How to make it even more user-friendly and attractive for suppliers is an ongoing discussion, and we're eager to collaborate to achieve that. Thank you, Angela, so much for your valuable insights! Looking forward to seeing these plans come to fruition in the coming years. All the best to you and your projects.

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The 5 building blocks to deliver the ROI of your digital transformation

SCM Insights

Ad hoc, dynamic — yet efficient: automating outbound transports

Transport bottlenecks, delivery delays, and volatile logistics costs have put more than just the inbound supply chain to the test in recent years. Outbound logistics faces the same challenges. But the solution has to be different. The actual outbound processes have their own specific characteristics. They typically run on different technical systems and are often less automated overall.But how can you handle outbound shipments efficiently and automatically? And are there potential benefits to managing inbound and outbound from a single system?Service parts: the challenge of ad-hoc transportationWhile inbound logistics is based on long-term planning, consolidation, and optimization, outbound logistics processes are much more dynamic. A classic example is the supply of spare or service parts: When a customer calls to report a broken machine, the replacement part needs to be shipped and arrive at the customer's facility as quickly as possible.Time pressure is high. The volumes to be transported are rather small. And the required master data is often missing from the ERP system. Ad-hoc shipments, varying materials, fluctuating quantities, different packaging, and constantly changing points of origin and destination make it difficult to automate processes. In addition, carriers and CEP service providers vary from shipment to shipment.As a result, logistics managers typically have to manually enter all the necessary data into multiple carrier portals to determine the most cost-effective transportation. A tedious and error-prone process!Shipment Data Entry mask: efficient support for ad-hoc shipmentsIn response, SupplyOn offers a Shipment Data Entry mask directly in the Transport Management System (TMS). This enables efficient digital processes even without a direct ERP connection or in cases where the master data for the transport order is not or only partially available in the ERP system.The integrated syntax completion function makes recording of ad hoc transport requirements quick and easy. Thanks to the master data stored in the TMS, information such as addresses, packaging or items can be dynamically retrieved via an intelligent search and automatically populated. In addition, users can enter master data directly into the TMS, for example via Excel uploads. The system also remembers routes and orders that have already been processed and suggests the relevant data for a recurring operation.Once entered, the information is sent to the carrier with a single click. This accelerates processes, eliminates sources of error, and saves resources — especially in situations where speed of response is critical.Digital and automated scheduling of regular outbound transportsHowever, the efficiencies that Shipment Entry brings also help to forward plan traditional outbound shipments. In the past, many plants sent their transport orders as PDF attachments via email to the carriers. The carriers in turn need to manually enter the data into their own systems. This can easily lead to errors. By using digital data transfer for shipment entry, these potential errors can be easily eliminated.The carrier to transport the shipment can either be determined by load building rules, or it can be predefined. The latter, known as forced carrier process, reduces the complexity of the transportation network and enables cost savings through economies of scale.Companies can also define load building packing instructions that are automatically used when creating the shipping notification or forwarder pick-up advice (FPA). The information from the FPA is then automatically incorporated into the label creation process. Label integration ensures that the transport labels to be printed meet all design and content requirements to ensure fast and smooth transport. Depending on the process, the TMS can also return the generated labels to the requesting system, such as the warehouse management system, or send them by email. Similarly, labels for the transport order can be requested directly from the carriers.Overall, outbound transport processes can be made much more digital, automated, and efficient. Companies benefit even if individual plants do not have an ERP connection to the TMS due to heterogeneous system landscapes. The same is true if the quantities to be loaded and the associated loads fluctuate greatly. All of these cases, in which automation was previously only possible to a limited extent or involved considerable additional manual effort when creating loads, are now covered by a single solution: master data as well as shipments can be created quickly and easily; individual orders can be entered easily. The system automatically recognizes recurring processes and accelerates them with its completion suggestions.All in all, this enables companies to digitize and automate their outbound transport processes and make them more efficient. Companies benefit even if individual plants lack an ERP connection to the TMS due to heterogeneous system environments. The same is true if there are strong fluctuations in the quantities to be loaded and in the associated loadings. All of these cases, in which automation was previously limited or required significant additional manual effort to create loads, are now covered by a single solution. It is a solution in which the creation of master data and the entry of individual orders is quick and easy. The system automatically recognizes recurring processes and accelerates them with its completion suggestions.Powerful combination: handling inbound and outbound in a single systemHowever, the greatest gains in efficiency are achieved when inbound and outbound shipments are handled in one system. This provides companies with an end-to-end logistics data chain, always with material references, from their own requirements to the goods receipt at the customer's premises.Moreover, you gain transparency at higher levels. This applies in particular to the volumes to be transported, regardless of the direction, whether outbound or inbound. This enables further economies of scale when selecting carriers.At the same time, organizational visibility is achieved when, as in many companies, different departments or individuals are responsible for inbound and outbound. By using a unified solution, internal optimization potential can be identified and processes improved accordingly.In addition, you can now identify opportunities to combine inbound and outbound transportation. For example, you could combine a plant-to-plant transport with a milk run or an inbound flow to save on additional routes. By overlapping inbound and outbound chains in this way, network planning can become much more intelligent and achieve highest levels of efficiency.Overall, you can monitor all aspects of transportation and carrier management in the TMS, evaluate them through analytics, exploit synergies, and continuously optimize processes and costs on both sides of the logistics chain.

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“Vrooom“-tastic: SupplyOn 4 Children 2023 brings an unforgettable experience to kids in need

Inspired by the charity project "Münchner Geschenkeregen" in 2020, our marketing colleagues Anja and Lena, together with us vocational trainers, Marco and myself, founded the "SupplyOn 4 Children" initiative last year. We raise money internally to fund a special event for the kids at the Children's Home in Feldkirchen which takes place each year on World Children's Day, September 20. Last year the kids could jump around in the Maxxarena, a huge trampoline park in the east of Munich. This year's plan: go-karting and bowling at the GoKart Arena in Neufinsing.The fundraising platform: a very special trainee projectA fundraising event of this kind needs to be well prepared. After all, our employees can either support a child directly by paying . Or they can make a flexible donation of their choice for food and beverages. All of this is handled through a dedicated platform. Charlotte from our UX team designed this year's website. Our trainees Christos, Lukas, Paul and Tim did all the programming and testing.As part of their vocational training to become IT Specialists, our first- and second-year apprentices took this project completely on their own and even added their own ideas. For example, Paul came up with a feature allowing donors to add their personal greetings to the children. These very touching words were then printed on the children's personalized tickets.All in all, a lot of hard work went into the platform, front-end and back-end were diligently coded—and the result was really something to be proud of: appealing design, user-friendly forms, PayPal connectivity, email notification and reporting were all implemented by the four of them.The response was simply incredible: the same day the web page went live, 80 percent of the planned trip had been funded by donations already. In total, we raised more than 1,800 euros. Thanks to this generous support from SupplyOn employees, the kids of the children's home had a memorable trip full of fun and adventure on World Children’s Day 2023.Go-karting: a fast-paced start to the adventureShortly after three o’clock, the SupplyOn delegation, consisting of the trainers Marco and myself as well as the two trainees Christos and Paul, arrived at the GoKart Arena in Finsing and were welcomed by Nici, Division Manager of the children’s home. She and a colleague were on site there with some of the kids. Outside the entrance was a discarded go-kart where the children took their first souvenir photos. The children's faces were already filled with anticipation. A little later, all the other children and caregivers arrived, and registration for the go-kart race could begin.After the children had registered for their driver's license, the instructions for the upcoming go-kart race were supposed to follow. But first, the children wanted to thank the SupplyOn employees, whose donations made this wonderful day possible. They presented us with lovingly designed cards and boxes of chocolates as a thank-you.Then the go-kart race began. The two trainees also joined in. The first laps were for getting familiar with the karts and you could feel the ambition in everyone. The smallest girl had great respect for the speed, but still she bravely managed lap after lap. Again and again, she waved excitedly and proudly to her caregiver. After the warm-up, the race was on! On the scoreboard, the lap times improved steadily. There was a fierce battle for places. From time to time there were small touches on the barriers, and it was often very tight in the corners. When everyone crossed the finish line, it didn't matter who had the best time. They were all fearless racers and winners! "Let's do it again! That was so great!" they exclaimed enthusiastically.Bowling: simply smashingBut there was no time for another round because the next adventure was waiting: bowling. The kids picked out shoes, found the right sizes, and headed downstairs to the bowling alley. Not one, but three lanes were reserved for the children. The rules were quickly explained, and the appropriate balls were selected.At first, the shots were a little tentative. But with a little practice, the first pins fell. The children became braver, stronger, and more accurate in their throws. Every hit was cheered and celebrated. Another hour with a lot of fun, but also physical exertion, passed and hunger began to set in. This was also taken care of, and we headed to dinner together.Action makes hungry: a delicious end to an eventful dayThe friendly staff at the GoKart Arena had prepared a long table for everyone. Soon, large plates of chicken cutlets and generous portions of French fries were being served. Everyone was obviously enjoying the food. When everything was completely devoured, the landlady returned with two more large portions of fries and a lollipop for dessert for everyone. Even the older "kids", the interns, got one each 😉Three and a half hours passed quickly, and it was time to go home. But not without once again thanking the SupplyOn employees for such an exciting day. "Can we please do this again? It was so much fun!" they asked longingly. So, we were all the more delighted to be able to tell them that we will soon start planning for World Children's Day 2024. In the meantime, thanks to the many generous donations this year, we have a surprise for the backyard of the children's home. What that surprise will be is still under wraps. Otherwise, it wouldn't be a surprise, would it? All we can say is that the children will have a lot of fun with it for a long time to come.

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