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AXIT publishes Success Model for Procurement Processes in the Automotive Industry

AXIT publishes Success Model for Procurement Processes in the Automotive Industry
The Frankenthal-based IT company AXIT has analyzed the ways of complex procurement for material and parts in the automotive industry and has incorporated 15 years of automotive know-how into the result. The outcome is a best practice report with which manufacturers can turn their procurement processes into a success model.

“Today’s challenge in automotive logistics lies in reducing complexity in the interaction of many participants and to set up agile processes”, says Frauke Heistermann, member of management with the IT service provider AXIT. “In order for parts and components to arrive at the manufacturer as ordered the processes from delivery call-off to delivery must be linked across companies and be made transparent.”

Due to the large number of suppliers and forwarders with which automotive manufacturers usually work a complex process develops, as communication between the partners of the delivery chain goes its own ways: While pick-up orders with one supplier are triggered by telephone or fax others may favor EDI or e-mail. The consequence: A continuous and thus controllable and projectable delivery process cannot be mapped. Besides, immediate feedback is missing to inform the manufacturer whether a delivery call-off and the actual pick-up order match or if there are discrepancies.

When was the delivery picked up? Does it include all the required delivery call-offs? Does it correspond with the original delivery pre-alert? When will delivery actually take place? “Between delivery call-off and delivery of the required products many OEM and first tier suppliers find themselves in an information defensive because, for example, continuous linking of all information along the delivery chain is missing”, AXIT manager Frauke Heistermann describes the problem.

In the recently published best practice report the IT company identifies a success model with which the integration of partners and processes in a procurement network for the automotive industry succeeds. At the same time the publication documents how management processes related to the delivery process can be automated and standardized to a high degree.

The basis for the publication is process experience from the automotive industry which AXIT, as the operator of the IT platform AX4, has collected over the past 15 years. The platform for cloud-based controlling of logistical processes, with 150,000 users across Europe, is, among others, used by Audi, Ford, Deutz and Schmitz-Cargobull today.

The best practice report “Automotive” can be requested free of charge under or e-mail