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Headrest Automotive Customer

During February and March 2019 AMBE work with a headrest tier 2 Automotive Customer to analyze and suggest ways to correct their failure on transmitting ASN’s that were causing constant not match on accumulative figures with their Tier 1 supplier and affecting the flow of product to final customer due to inventory discrepancies for missing goods receipts related to the errors in the ASN’s transmission.

The Challenge

Root cause was the constant errors transmitting ASN’s to Tier 1 that caused inventory discrepancies that affect the flow of product to final BMW location
I. Demand / Requirement (Grammer-Magna) analysis to determine failure to maintain OH-FG inventories target on each location.
II. EDI CUM’s (Grammer-Magna) needs review & update
a) Initial screening of findings – 120 references
b) Complete rest of missing references: 37 Magna, 7 Grammer
III. Execute FG physical inventory counts as needed *Grammer
IV. Proper use of EDI platform instead of Excel files for daily hot-list follow up, to prevent new hot items to show up.
a) Sample proposal submitted (AMBE)
b) Magna/Grammer to develop strategy for EDI usage Open
V. Daily follow up on critical shipments as requested by Magna after results of daily meeting (charters, hand carriers, regular trucks)
Grammer not addressing CUM topics as Prio.1
• Root cause analysis not followed up by Grammer – No feedback provided either
• System differences not revised, nor updated
• Meetings: Late attendance and without accurate data
AMBE help to analyze complete EDI process to focus in the bigger offender causing inventory discrepancies with their Tier1 customer

The Solution

Gather all history data of errors, compare cumulative figures Tier2 vs. Tier1, adjust accordingly and start a clean process avoiding further errors.
I. Demand / requirements.
a) Attainment of EDI load twice a week
b) Immediate review of variations
II. Cum differences (Total analyzed 120 items)
a) Conclude adjustments
b) Maintain Open issue list and KPI
c) Start over / random audits
III. ASN’s failure / missing
a) Reinforce dock audits
b) End of day review.
c) Understand MSSC ASN receipt system
IV. Proper use of EDI platform instead of Excel files
a) Control of Cum variations
b) Confidence on EDI
c) Less use of manual reports
V. Demand variations
a) Agree on way of analysis
b) Reflect agreements on EDI

The Result

ASNtransmission errors

Before

50 – 70% of errors when creating and transmiting of ASN’s

After

Gradually moved to zero errors applying dock audits on shipping area, people train and immediate review and follow up of system after transmission of ASN.

System & Training

Before

Analyzed Tier2 vs Tier1 cumulative and history receipt to match accordingly

After

Adjusted all cumulative figures leading to a clean start.

Inventory Discrepancies

Before

50% of discrepancies on all existing inventory of FG on Tier 1 WH due to miss receipts related with ASN errors

After

Expected zero inventory discrepancies of inventory after clean start and correction of ASN errors

Costs

Before

IVATE High Premium freight & costs due to constant expedites related with discrepancies of inventory CONFIDENTIAL on Tier 1 WH

After

Avoided expedite costs after matching Tier2 vs. Tier1 cumulative quantities, correcting ASN errors and determine a clean start in shipping area.

With more than 100 team members in the US and response teams available globally, we are an award winning ISO 9001:2015, dual-certified W/MBE diverse supplier that brings expertise you can count on and outcomes you can measure.

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