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CASE STUDY: BMW

BMW is a multinational automobile and motorcycle manufacturer, with production facilities spanning 15 countries.

Allocation Clients Include The BMW Group

E-sourcing timeline in the BMW Group

2003

Allocation, and other service providers, provided the first non-production material auctions.

2008

The decision was made to consolidate the systems and leverage ASTRAS as a single system of choice in-house.

2004

BMW discontinued in-house development of their own eRFx solution, and placed responsibility on four partners.


2009

ASTRAS becomes the sole international eRFx solution for both indirect and direct purchasing – and is fully integrated into the systems and processes of the BMW Group.

Software requirements

  • BMW’s challenge was to find an application that would best match the different supply templates in both production and non-production materials.

Production

The inquiry process is geared to a few BMW Quotation Analysis Forms (QAF). In these QAFs, the cost components of the parts to be procured are presented in detail by the supplier. Further, the database can be drawn from source systems and key figure reporting is firmly established.

Non-production

Inquiries in non-production material are characterized by group-specific detail requirements. Standardization is achieved as the application manages the balancing act between flexibility and complexity, on the one hand, and usability on the other hand.

  • Full integration in portal M, the buyer's cockpit of the BMW Group.

Outsourced Auction Management

  • Allocation acts as a full-service provider to BMW. All auction results, whether conventional (a more common variant) or finalized by auction, the results are syndicated into the portal M, documented, and a supplier recommendation is created.

More about the “portal M”

  • Portal M, the heart of the BMW Group's purchasing systems, is the central interface that maps and controls ALL processes in the purchasing department. All users involved in the process engage in a role-based basis within necessary phases. The portal M also ensures the syndication of all relevant data across application boundaries, without media discontinuity.

Phase 1 (inquiry preparation)

After the notification the requirements from various upstream systems into the portal M, the interdisciplinary collaboration between Cost Engineering, R & D, Logistics, Quality and Purchasing starts with the examination of existing contracts, the coordination of the award procedure, the preparation of the inquiry documents and specifications, and the bidders vote for the respective process.

Phase 2 (execution of the request)

After approval of the process, all relevant data becomes available in ASTRAS’ eRFx module. Invited suppliers view the specifications and submit their offers. The quotations are detailed by the supplier, within their product group-specific or cost analysis structures, and results are automatically combined by into supply levels.

Phase 3 (award decision)

After technical and professional approvals, several rounds of evaluations and negotiations occur – and, in certain cases, buyers leverage ASTRAS’ auction module as an additional negotiation mechanism.

Phase 4 (order creation)

Following the decision of the awarding committee, the order is created, and the procurement tracking and performance/delivery confirmation is posted.

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
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