The Issues for Tier-One
and Tier-Two Suppliers
Transparency and Control over logistics processes
Variable demand - Globalisation and broad range of exchanges – Huge amount of data and dematerialization - Complexity of the Supply Chain
So many issues that we can help you overcome
Capacity
REACTIVITY to face a variable demand
Logistics
FLEXIBILITY in the Supply Chain
Standards
COMPLIANCE with specifications
Performances
MAINTENANCE of the operational performance
Regulation
COMPLIANCE with local regulations
COMPLIANCE WITH THE CUSTOMERS’ REQUIREMENTS
Compliance with MMOG/LE requirements
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Automotive standards
GALION integrates the best practices of automotive standards for Tier-One and Tier-Two suppliers
The software package GALION Automotive was assessed according to the criteria of the label GALIA «CERTIFIED SOLUTION Automotive ERP». This label is based on a unique baseline of rating criteria
The solution GALION is completely compliant with the requirements of the automotive industry
PLANNING - EXECUTING - MONITORING
The MMOG certification enforces to have a structured organization, control over the processes and over the performing means
BRONZE ALU : REACTIVE to face a variable demand
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Forecast management
Market share calculation
Quantities of items are forecasted per period, customer, plant or warehouse for a starting production site.
Calculation of a budget forecast by combining several forecasts
The gap between estimations and achievements is monitored based on sent quantities
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Production planning and logistics
Calculation of the customers’ average daily consumption
Levelling and anticipating orders (such as one-shots, by taking into account periods of non-work for instance)
A stock objective is determined and passed on for the requirements calculation.
The changes in demand are compared
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Requirements calculation (MRP)
The calculation can be applied on the flow modeled in technical data (production processes) and logistic data (sourcing baseline).
Requirements calculation for production lines (MRP), while considering or not stock on hand, supply, system loads and customers’ average daily consumption
Consideration of a stock objective
Production schedules are set up and can be parameterized for processes, sites, resources
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Scheduling
Production scheduling
Availability of components, workforce and tooling
Tracking early arrivals and delays and synchronizing with the requirements calculation
Calling for components
Restitution of indicators
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Project management
Management of the projects to develop and modify products
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Production monitoring (MES : Manufacturing Execution System)
Production feedback
Traceability of tools and footprints
Activity and flows are linked through labels.
Manufacturing scrap
Integration of external systems
Connection with automatons (PLC: Programmable Logic Controller)
FLEXIBILITY IN THE SUPPLY CHAIN
The changes of logistic organizations, might they be internal or external, and the changes of sourcing force the suppliers to be able to adapt at every turn
SYLVATRIM : FLEXIBILITY from the simple to the complex
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Several companies, several sites
EDIFACT GALIA/ODETTE structure
A primary salesperson is appointed along with as many partners as there are firms.
For each company, sites, warehouses and zones are determined.
The structure of remote warehouses and subcontractors generates the corresponding customer structure.
Automatic treatment of inter-company transactions
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Commercial management
Management of open orders, firm orders and tenders
Management of prices including price decomposition
Management of the locations of despatch
Management of the customer structure
Buyers, recipients, recipient locations and articles are all taken into account by the software
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Inventory management, with several owners
One article of the article base can be shared between several firms.
A warehouse can contain multi-company articles.
Flows between warehouses and shipments cause transactions, EDI messages, transferred documents (delivery notes and invoices)
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Invoicing
Customer and supplier invoicing
Self-billing
Retroactive invoicing
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VMI (Vendor Managed Inventory) - Third-party warehouses and transportation
Consignment
Transfers - consumption
EDI transactions
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Despatch management
Despatch plan
Preparation of shipments – Loading process
Inspection of packing units, handling units and of the format of labels
Packaging in compliance with standards
Standardized documents and EDI: delivery notes, transportation, packaging
COMPLIANCE – LOGISTICS PROCEDURES - IDENTIFICATION – EDI
The specifications from the OEM require each company to respect commitments on the quality of outbound data and documents
PERNAT Industrie: Respecting the requirements specifications of manufacturers and equipment suppliers
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Multi-level monitoring of the Supply Chain (SC Mo: Supply Chain Planning and Monitoring)
Inventory control of all the participants to a same supply chain
Multi-level coverage requests for stocks are taken into account and updated via EDI.
Requests for critical flows are monitored and synchronized
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Management of sustainable packages
Identification of package types and tracking of movements
Integration/Transmission of movements via EDI
Management of packaging standards
Management of palletizing systems
Transmission of packaging details on the ASN (Advanced Shipping Notice) towards the packaging controller
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Identification through labelling
The software edits labels according to customers’ specifications about the formats of packaging labels and handling labels.
The international single label number is taken into account.
Flow monitoring by reading bar codes
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Supplier sourcing
Vendor Managed Inventory (VMI) recommendation
Transmission of forecasts and customer inventory levels via EDI
Transmission of replenishment proposals via EDI
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Traceability of pieces
Identification of pieces and packages throughout the product lifecycle
History of movements and transmitted EDI messages
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Multi-standard EDI
EDIFACT – VDA – ANSI X12 standards
Standards and levels are outlined by the contractors.
DELFOR-DELJIT-ORDER-ASN-INVOIC-STOACT messages
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Manufacturers' logistic procedures
Logistic obligations are outlined for each manufacturer.
CINDI RENAULT– PCA Alternative logistics, etc.
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Calculation of the Forecast Accuracy Index (FAI) and of the Weighted Tracking Signal (WTS)
Confrontation of requests and capabilities
Transmission of capability data
KEEPING THE PERFORMANCE OPERATIONAL
In order to manage cost control and the conformity of products, good management and a reliable monitoring of the production means are necessary
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Production monitoring
Work of operators (operator output rate)
Work of means of production (synthetic output rate)
Monitoring of manufacturing scrap
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Supplier Relationship Management
Certification
Supplier service rate - Assessment (quantity and packaging reliability, on-time deliveries)
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Capacity and planning
Load analysis and generation adequacy
Programming and scheduling
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Customer Relationship Management
Analysis of the variations of customer programs
Customer service rate
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Analyzing performances
Control over the performance indicators (logistics, purchases, inventory, production, sales, maintenance, etc.)
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Control of products/process (routings and bills of materials)
Creation and upkeep of the bills of materials
Generation of production processes at the effective date
Monitoring of piece and plan indicators
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Quality and non-conformity
Recording of quality checks
Good-quality sampling and visual or dimensional inspections are monitored (thanks to electronic sliding calipers).
Activation and tracking of precautionary measures
Photo Library of flaws
Corrective measures
Firewall
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Calculation of costs
Cost decomposition and tracking according to categories
COMPLIANCE WITH REGULATION
The globalisation of trade sometimes leads to the setting-up of a site in a new country. Compliance with local fiscal obligations can then be a painful necessity
AAM : Did you just say SOX ?
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SOX - IFRS - Tracking data
Implementation of ISAE 3412 recommendations and setting-up of traceability tools. Protection of sensitive data.
The ISAE 3402 report offers to SOX auditors an external insurance coverage on the controls made
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Dematerialization of invoices
In accordance with European Directive 2001/115/EC and its transposition into French law (article 289bis in the General Tax Code). Establishment of record-keeping and control functions in order to abolish paper invoices
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Self-billing
Widespread in Anglo-Saxon countries, self-billing reduces the invoice processing cost for the contractor. In France, it is authorized by article 62 of the Act No. 2012-1510 (transposition of European Directive 2010/45/EU)
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IMMEX
IMMEX is a program by which the Mexican government provides a tax incentive to companies manufacturing in Mexico and exporting products. Being a registered IMMEX company requires some archiving and inventory controls for traceability because there are regulatory audits
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Electronic signing of invoices
To fight against fraud, electronic invoices must be accompanied by a fiscal receipt (Digital tax receipt via internet); the receipt has to be accompanied by an electronic signature emitted by tax authorities via a signature validation service
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SAFT.T (Standard Audit File for Tax)
Defined by the OECD, this standard to exchange XML files is today mandatory in Portugal, Austria and Poland