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CASE STUDY: AVL

For over 60 years, AVL has been a leader in the development of powertrain systems and corresponding simulation and testing technology.

In 2011, the BMÖ – Federal Association for Materials Management, Purchasing and Logistics honored Allocation and AVL with the 1st place prize for Supply Chain Excellence.

The following is an excerpt from an interview with AVL’s Head of Strategic Purchasing, Franz Fischbacher, by E-3 Magazine:

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Franz Fischbacher

AVL Head of Strategic Purchasing

How do dynamics and product width affect the purchasing in AVL?

“We have defined a sourcing strategy with the company-wide effect. We use an SRM tool which enables an automatable processing within all the company organizations. In other words, we simplify, accelerate and automate the process with a higher process security and efficiency at the same time. Through the consistent and transparent course of operation, we are able to apply the purchasing synergy with suppliers despite the decentralized sourcing process.”

Which further functions do you also apply?

“We work with many suppliers together, and these suppliers deal with different organizations within the AVL group. Therefore, both the whole general evaluation and the development of suppliers are important. The results of supplier assessments are not only internally available, but also available over our SRM-platform for suppliers.”

How do you integrate the suppliers in the whole solution?

"We have efficient supplier management which enables a flexible RFx process, as well as the integration with the existing sourcing process and systems. The solution is efficient, global, transparent and accessible for all internal users in need. Certainly, we can also contribute to the competitiveness of AVL. We can reach the price reduction of supplier products and reduce the costs occurring during the purchasing process. Not only AVL, but also our current and potential suppliers, can get the access to the globally available and web-based SRM-portal. We have complete electronic supplier records with the SRM tool, including building of supplier data and the storage of documents. Also, a register process runs with our SRM tool. The processes of bidding is integrated with the existing SAP system, which is achieved by standardized interfaces of ASTRAS. Here we have chosen the ASP-variants.”

And how did you realize the integration with SAP?

“We primarily see the transfer of BANF from SAP to the tendering platform and back. This includes the ASTRAS button in SAP, which forwards the BANF. Today, the transfer takes place from suppliers and the vendors are still managed manually in SAP. In a next step, we will realize this automatically via an interface.”

Allocation parts and material lifecycle supply chain management software system

Benefit From:

  • Lowering process costs by up to 80%
  • More effective sourcing events
  • Shortened cycle time to part qualification
  • Strong compliance
  • Increased supplier collaboration
  • Reduced supplier and part risk
  • Complete visibility, across functions
  • Assurance that your processes and best practices are followed every time
Allocation Clients Include The BMW Group
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