An Enhanced Supply Chain Interaction Model: A Case Study
An Enhanced Supply Chain Interaction Model - Improving Efficiencies & Effectiveness - A Case Study
Sripathy Ramachandran, Practice Lead & Principal Consultant (Automotive SPICE and Functional Safety), at KPIT, will speak at VDA Automotive SYS Conference on “An Enhanced Supply Chain Interaction Model - Improving Efficiencies & Effectiveness - A Case Study”.  He shared with marketing team, his views on the importance of having a proper methodology to address the supply chain challenges. 
1. What challenges does the Auto ecosystem face with respect to supply chain interaction between OEMs and Tier1s?

Original Equipment Manufacturers (OEMs) procure systems, sub-systems, components, software and hardware from suppliers in the supply chain. The OEM has a huge task of integrating what’s provided by the suppliers into the vehicle, and multiple levels of testing is needed before the vehicle hits the roads.

In fact, each partner is a large corporation in itself, with well-established home-grown processes, using institutionalized and often unique toolchains to support product development. Hierarchies of suppliers only add to this complicated and diverse development landscape.

The OEM, suppliers and sub-suppliers have multi-way dependencies, and each of them have a stake in making the vehicle program successful. For the success of the product, it is essential that all of them work together efficiently and effectively.

Besides the softer aspects of the relationship, it is necessary to streamline the process approach to work together to have a smooth and efficient approach for interaction and exchange of data.

2. What measures are OEMs and Tier1s taking to address these challenges?

To maximize efficiencies on the interaction model between OEM & Tier1s, there needs to be a focus on the interaction points between the OEM and the suppliers, from both a management and a technical perspective. 

Whilst there are often both formal and informal methods by which the interaction model is discussed and agreed, it is important to establish an effective and robust approach in the early stages of the engagement, to focus on important technical matters, which inevitably occur later.

An efficient and effective approach by which an OEM and its suppliers take proactive steps to establish the interaction model during the early stages of the development include:
  • Initiate the process of collaboration planning
  • Identify all interaction points, in terms of the management and engineering areas such as Requirements Management, Change Management, Defect Management, Issue Management, Release Management etc.
  • Establish a common workflow for the engagement
  • Agree on the common glossary – as the use of terms may vary within each organization
  • Define clearly, the state transitions within each process
  • Define information exchange format for seamless import/export from the respective systems
  • Review the progress of the engagement to improve efficiencies
  • Use common tools for information exchange
3. How do you think KPIT can help in bridging the gap between various stakeholders of automotive ecosystem?

KPIT supports OEMs and Tier1s to establish a supplier management framework, which helps to set up the interaction model between the key stakeholders. This requires a good understanding of the processes from both the parties – thereby, recommending a suitable approach for establishing the processes and information exchange.

KPIT assists in setting up the processes, coach the team to adopt these processes and work closely with the OEMs and Tier1s to roll out the Supplier Collaboration framework within the project , right from inception through the completion of the engagement. This includes continuous monitoring and refinement of the approach based on feedback received from either stakeholder.

4. Congratulations! We look forward to your talk on June 14, 2018. What can the audience expect?
The session will cover how to streamline the interaction model and ensure both the OEM and its suppliers have a transparent and cohesive process, greatly assisting in the assurance of the final product. This presentation focuses on an efficient and effective approach by which an OEM and its suppliers take proactive steps to establish the interaction model during the early stages of the development. The philosophy of continuous improvement and learning from past is engrained within this model.
Thanks for your time for this interview. We look forward to listening to your session on “An Enhanced Supply Chain Interaction Model - Improving Efficiencies & Effectiveness - A Case Study” at VDA Automotive SYS Conference June 14, 2018 from 10:15 - 11:00 AM CET.
Nishant Tholiya
Sripathy Ramachandran
Practice Lead & Principal Consultant (Automotive SPICE and Functional Safety), KPIT Technologies
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