AIAG links supply chain with online program
By Staff -- Modern Materials Handling, 3/1/2000
The Automotive Industry Action Group (AIAG) believes it's web-based Internet tool that assists trading partners with electronic linking-will become a key tier one supplier initiative."Tier one suppliers realize the importance of having a centralized database for ease of maintenance of electronic linking information," says Julie Hartman, e-commerce project manager with Textron Automotive.
According to Hartman, the linking of the suppliers throughout the supply chain will be a critical component as technology provides the industry with the means to provide customers with the "10-day car."
"Supply chain electronic data interchange (EDI) enables suppliers to increase inventory turns and reduce lead time, premium freight costs, change-over, and obsolete material costs," says Nance Malo, AIAG program manager. "Now that the AutoChain online service has been successfully implemented within several of our members' supply chains, we're already hearing about such improvements and, as a result, suppliers are better meeting customer needs and requirements."
According to Malo, to implement the AutoChain Online service throughout a supply base, members of the company attend to one of AIAG's roll-out seminars, share the information they gained with their suppliers, and then set a target date for their supply chain to get connected to the service.
More than 1,000 companies representing over 5,200 production plant locations currently subscribe to the service.
Automakers and suppliers typically exchange numerous paper-based surveys on everything from their status in EDI compliance to quality initiatives. The AutoChain Online service is the first system to track this information electronically.
The Automotive Industry Action Group (AIAG) believes it's Web-based Internet tool that assists trading partners with electronic linking-will become a key Tier One supplier initiative.
"Tier One suppliers realize the importance of having a centralized database for ease of maintenance of electronic linking information," says Julie Hartman, e-commerce project manager with Textron Automotive.
According to Hartman, the linking of the suppliers throughout the supply chain will be a critical component as technology provides the industry with the means to provide customers with the "10-day car."
"Supply chain electronic data interchange (EDI) enables suppliers to increase inventory turns and reduce lead time, premium freight costs, change-over, and obsolete material costs," says Nance Malo, AIAG program manager. "Now that the AutoChain online service has been successfully implemented within several of our members' supply chains, we're already hearing about such improvements and, as a result, suppliers are better meeting customer needs and requirements."
According to Malo, to implement the AutoChain Online service throughout a supply base, members of the company attend to one of AIAG's roll-out seminars, share the information they gained with their suppliers, and then set a target date for their supply chain to get connected to the service.
Automakers and suppliers typically exchange numerous paper-based surveys on everything from their status in EDI compliance to quality initiatives. The AutoChain Online service is the first system to track this information electronically.
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