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Automating China's Supply Chain
BeijingBenz-DaimlerChrysler leverages B2B connectivity solutions to drive first just-in-sequence car factory in China
In 2006, BeijingBenz-DaimlerChrysler Automotive Ltd. (BBDC) opened an all-new state-of-the-art factory in Beijing to build Mercedes Benz E- and C-Class sedans, as well as Chrysler's best-selling big-grilled 300C sport/luxurymobile. Despite the limited experience of Chinese manufacturing personnel with enterprise resource planning(ERP) or electronic date interchange (EDI) systems, BBDC decided to automate all back-end processes at the new plant to implement just-in-sequence production. By leveraging solutions from SAP and SEEBURGER, the company was able to establish the first fully integrated automotive supply chain management infrastructure in China and one of the most advanced systems of its kind in the world.
Introducing EDI
For BBDC, the decision to adopt just-in-sequence processing stemmed from the need to build several different vehicle platforms on a single production line. BBDC predecessor Beijing Jeep Corporation, the first international automotive joint venture in China, had a smaller and simpler operation with no ERP system, manually communicated purchase orders and forecasts, batch production and a third-party logistics provider (3PL) to collect, manage and stage locally made parts. Those systems would not be adequate to support the new factory's demands.
The transition to just-in-sequence operations required more than a new SAP back-end. BBDC also needed to implement mandatory EDI throughout its supplier network, even with smaller local suppliers. "EDI is not widespread in Asia, but it was mandated by Daimler Chrysler to optimize BBDC's supply chain," said James Hatcher, managing director at SEEBURGER Asia Pacific Ltd. "The project therefore had even more challenges than a typical EDI implementation."
Introducing EDI
For BBDC, the decision to adopt just-in-sequence processing stemmed from the need to build several different vehicle platforms on a single production line. BBDC predecessor Beijing Jeep Corporation, the first international automotive joint venture in China, had a smaller and simpler operation with no ERP system, manually communicated purchase orders and forecasts, batch production and a third-party logistics provider (3PL) to collect, manage and stage locally made parts. Those systems would not be adequate to support the new factory's demands.
The transition to just-in-sequence operations required more than a new SAP back-end. BBDC also needed to implement mandatory EDI throughout its supplier network, even with smaller local suppliers. "EDI is not widespread in Asia, but it was mandated by Daimler Chrysler to optimize BBDC's supply chain," said James Hatcher, managing director at SEEBURGER Asia Pacific Ltd. "The project therefore had even more challenges than a typical EDI implementation."
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