Global Sourcing - The Logistical Challenges of Global Manufacturing Companies

Can you identify bottlenecks and overcapacities in production before they occur?

The impact of global sourcing on the automotive industry is enormous. An over- or undersupply of materials or components can cause dire consequences. During the parts procurement stage it is important to weigh the supply options looking at both short delivery routes and global supply options in order to efficiently manage the supply chain. Long supply chains always carry risks such as bottlenecks, long lead times, and costly emergency actions to ensure supply security. flexis helps to minimize these risks by:

  • Identify affected orders in the event of a bottleneck and create alternative scenarios to optimally utilize available capacities.
  • Recognize released or unneeded parts and resource capacities so that they can be redirected where needed or incoming numbers can be reduced.
  • Take advantage of an integrated planning process incorporating the needs of sales, production, production planning, logistics, scheduling and purchasing, to leverage capacities and lean operations.

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Do you have an overview of supply security of scheduled jobs?

Today’s business climate creates numerous challenges, one of which is balancing the clash of increased product variety and worldwide supplier plants. Because of inventory restrictions it is impossible to keep all necessary parts on hand at a factory warehouse, which means that there is a risk of part shortages caused by globally sourced parts. The question is “what is the best way to deal with demand fluctuations due to market changes?” Inventory causes high storage costs, emergency reactions drive up transportation costs, and short-term high volume production runs increase operating costs. Therefore, it is crucial to see in real time what jobs can be built with the parts on hand in order to effectively leverage available capacities.

In order to efficiently distribute resources and create flexibility, transparency in the order planning and inventory control organizations is essential. Supply chain management is a holistic strategic task which can only be accomplished with cooperation between business units.

When unforeseen capacity bottlenecks arise, can you identify the affected contracts and analyze the effects?

flexis solutions help to quickly and efficiently resolve supply chain disturbances through increased transparency and cooperation. The production program is constantly being compared with the capacities, options, and parts availability in order to show buildability. Alternative plans can be validated through what-if scenarios. flexis solutions offer decisive advantages through:

  • Stabilization of the production program and reliable scheduling
  • Increased punctuality by matching customer delivery dates and capacities
  • Reduction in short-term corrective action through early identification of demand and capacity changes
  • Transparency of multilevel parts availability and capacity loads
  • Securing medium and long term delivery schedules