RFID-based Automotive Network (RAN)

Published on 06-Sep-2012

"Cross-company intelligent material flow control will enable efficient production as well as economical, inventory-optimized logistics while creating industry-wide standards for traceability." - Detlef Schumacher

Customer:
RFID-based Automotive Network (RAN)

Industry:
Automotive

Deployment country:
Germany

Solution:
Master Data Management, Smarter Planet, Supply Chain Management

Smarter Planet:
Smarter Logistics, Smarter Supply Chain

Overview

Individual vehicle requirements, new drive systems and constant innovations produce an ever-growing product variety in the automotive sector. For this reason, vehicle manufacturers are focusing on their core competencies and reducing the vertical range of manufacture. This results in the development of complex supplier networks. A consortium of automakers, suppliers, transportation companies and technology leaders have formed the research project RFID-based Automotive Network (RAN), promoted by the German Federal Ministry of Economics and Technology.

Business need:
While auto parts are already being tracked via radio frequency identification (RFID), solutions are limited in scope and heavily customized to support existing trading partner relationships or internal supply chains. What’s lacking is the transparency needed to track parts flow—with granularity—across the entire supply chain. Results are inefficient production processes, quality problems, high volumes in the supply chain and inefficient recall management, all of which can cost automakers and suppliers in terms of time and money, as well as public perception of the brand.

Solution:
Multiple automakers, OEMs, technology companies and logistics providers are working together across the supply chain within the automotive industry to improve the traceability of automotive parts. Tracing parts enables automakers to plan production lines based on what is being delivered, rather than retooling after a shipment arrives. With advanced tracking, automakers can trace the recall of a part to the supplier’s line on which it was made, preventing costly recalls and ensuring the design flaw isn’t repeated. This system provides improved visibility into the automotive supply chain.

Benefits:
Precise tracking enables better management of shipping containers, and is anticipated to help lower logistics costs by as much as 5 percent Expected major reduction in costs associated with vehicle recalls through more precise tracking of parts across the automobile value chain Saves production time and downtime costs associated with retooling production lines by enabling manufacturers to respond proactively, instead of reactively, to anticipated late or missing deliveries

Case Study

Individual vehicle requirements, new drive systems and constant innovations produce an ever-growing product variety in the automotive sector. For this reason, vehicle manufacturers are focusing on their core competencies and reducing the vertical range of manufacture. This results in the development of complex supplier networks. A consortium of automakers, suppliers, transportation companies and technology leaders have formed the research project RFID-based Automotive Network (RAN), promoted by the German Federal Ministry of Economics and Technology.

The Opportunity
While auto parts are already being tracked via radio frequency identification (RFID), solutions are limited in scope and heavily customized to support existing trading partner relationships or internal supply chains. What’s lacking is the transparency needed to track parts flow—with granularity—across the entire supply chain. Results are inefficient production processes, quality problems, high volumes in the supply chain and inefficient recall management, all of which can cost automakers and suppliers in terms of time and money, as well as public perception of the brand.

What Makes It Smarter
Multiple automakers, OEMs, technology companies and logistics providers are working together across the entire supply chain within the automotive industry, rather than in just one vehicle manufacturer’s individual network, to improve the traceability of automotive parts. Tracing parts from manufacturing to shipping to delivery enables automakers to plan their production line based on exactly what they know is being delivered, rather than having to retool after a shipment arrives with missing parts. With this advanced tracking system, automakers can trace the recall of a specific part right to the supplier’s line on which it was made, preventing costly recalls by identifying only those cars on which the part is installed, and ensuring the design flaw isn’t repeated. This industry-wide traceability system provides key players with improved visibility into, and insight from, the automotive supply chain to enable better production decisions.

Real Business Results
· Precise tracking enables better management of shipping containers, and is anticipated to help lower logistics costs by as much as 5 percent
· Expected major reduction in costs associated with vehicle recalls through more precise tracking of parts across the automobile value chain
· Saves production time and downtime costs associated with retooling production lines by enabling manufacturers to respond proactively, instead of reactively, to anticipated late or missing deliveries

Products and services used

IBM products and services that were used in this case study.

Software:
InfoSphere Traceability Server

Legal Information

© Copyright IBM Corporation 2012 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States August 2012 IBM, the IBM logo, ibm.com, Global Business Services, InfoSphere and System x are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.