10. Global Supply Chain Network Connectivity-
Industry Collaborations Enabling Standards
Based Interoperability
October 11, 2011
Akram Yunas, Program Manager, AIAG
Automotive News Webinar
11. Automotive Industry Action Group…
Message From J. Scot Sharland, AIAG Executive Director :
“ In the past 15 years…our world and industry have changed
dramatically. A new generation of automotive professionals and AIAG
volunteers are now being tasked with eliminating cost and complexity in
an even more challenging and unpredictable business environment.
To successfully drive continuous improvement in global data connectivity…
it is imperative that we fundamentally understand and thoroughly vet new
technology options…challenge the logic with respect to current
standards & the need for higher levels of performance in the areas of
speed, security and reliability and…lastly…reaffirm our commitment to
work together for our mutual benefit.”
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14. Project Introduction
Collaborative Supply Chain Data Network
Connectivity-2011 Project
Business Drivers:
• What low cost alternatives exist for data exchange for the electronically-
enabled supply chain?
• Are the low cost alternatives as reliable as current approaches given that
these solutions often take advantage of the Public Internet?
• Can appropriate levels of security for legal, contractual, regulatory and
product tracking information be maintained using a low cost alternative?
• Is the current performance and scalability of trading partner information
exchanges adversely impacted if a low cost alternative is implemented?
• Can Automotive OEMs and Suppliers develop a means to offer cost
effective alternatives in the transmission of business and technical
information?
• Can a common approach be identified and be recommended for the
Automotive Industry?
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15. Vision
Supplier Connectivity Project Launched: March 2010
• Automotive Industry supported open standards for communication
and transport of Electronic Data
• Evaluate and review similar solutions from other industries
• Categorize Communication methods by Supply Chain Management
business processes and CAD/CAE information requirements
– Type
– Volume
– Security
– Global, regional or country specific
– Cost value/ROI
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16. Project Introduction
Collaborative Supply Chain Data Network
Connectivity-2011 Project
126 Automotive Companies Provided Resources
Project Leads:
• Betty Young, Chrysler Group LLC, Chair
• Jerry Finefrock, ANX, Co Chair
• Doug Halliday, Trubiquity, Chair Technical Requirements
• Henriette Douglas, Covisint, Document Coordinator
• Deb Jablonski, Midway Products, Document Coordinator
Corporate Liaisons:
• Marilyn Smith, General Motors, AIAG Loaned Executive
• Monique Oxender, Ford Motor Company, AIAG Loaned Executive
• Morris Brown, Chrysler Group LLC, AIAG Chrysler Loaned Executive
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17. AIAG Project- Key Accomplishments
• Captured Industry Requirements for Connectivity
• Mapped Internet Solutions to Private Network – Pros and Cons
• Evaluated IP based solutions and provided implementation case
studies
• Evaluated State of Connectivity in non-automotive industries via
implementation case studies
• Captured OEM existing Connectivity Landscape
• Captured OEM moving forward connectivity strategies
• Captured OEM to Supplier future recommendations
Resulting in a renewed game changing supply chain connectivity landscape…
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18. OEM LANDSCAPE – 2011
EDI Ford GM Chrysler Honda
1.Public Internet 1.Public Internet 1.Public Internet 1.Public Internet
Standard EDI 2.ANX 2.ANX 2.ANX 2.ANX
( Machine to Machine)
Web EDI
(low volume or non EDI Public Internet Public Internet Public Internet Public Internet
capable)
Engineering Ford GM Chrysler Honda
& CAD
On-line Engineering 1.Public Internet 1.Public Internet 1.Public Internet N/A
(“Direct Connect”) 2.ANX 2.ANX 2.Private Circuit
CAD File Exchange Public Internet
Public Internet Public Internet Public Internet
(off-line engineering) Private Circuit
20. European OEM Connectivity Landscape
2011
Status
BMW Daimler Fiat Ford GM Jaguar PSA Renault VW Volvo
Group
Access 1. ENX 1. ENX 1. ENX 1. ENX 1. ENX 1. ENX 1. ENX 1. ENX 1. ENX 1. ENX
2. ISDN 2. ISDN 2.TCP/IP 2.TCP/IP 2. VAN 2.TCP/IP 2. VAN 2. VAN 2. Public 2.Public
(GSX, (GXS) (GXS) Internet Internet
Planning Planning 3. ISDN Covisint) 3. ISDN
TCP/IP TCP/IP 3.ISDN 3.ISDN
Proto- 1. OFTP 1. OFTP 1. FTP 1. OFTP 1. FTP 1. OFTP 1. OFTP 1.OFTP 1. OFTP 1. OFTP
2. OFTP2 2. Web 2. OFTP 2. FTP 2. OFTP 2. FTP 2. OFTP2 2. FTP 2. OFTP2 2. OFTP2
cols 3. SFTP 3. Web (Engineer) 3. Web (Logistics) 3. SFTP
3. FTP 3. Web 4. FTP
Planning Planning Planning
OFTP2 OFTP2 OFTP2
EDI VDA VDA ODETTE VDA EDIFACT VDA EDIFACT EDIFACT VDA EDIFACT
ODETTE ODETTE EDIFACT EDIFACT EDIFACT ODETTE ODETTE EDIFACT ODETTE
EDIFACT EDIFACT ANSIX12 ANSIX12 ODETTE
ANSIX12 ANSIX12
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21. Next Steps at AIAG:
Validation Pilot
“Internet Based Solution For Global Supply
Chain Connectivity”
Industry Sponsors:
• AIAG, Automotive Industry Action Group (N.A)
• Odette, European Standards Organization (Europe)
• JAMA, Japan Auto Manufacturers Association (Asia)
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22. Conclusion & Take Away….
• Private Networks provide a valuable service in todays connectivity
domain. They are current connectivity performance standard.
• Private Internet (PI) has matured to a point where it now meets
automotive industry requirements in terms of security, reliability, speed
and bandwidth.
• North American OEMs have endorsed PI based solutions as an “approved
option” in their supplier connectivity toolkit.
• European OEMs are fast transitioning to PI as their preferred and or
required “connectivity medium”.
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23. Conclusion & Take Away….
• Asia Pacific is in the planning stages of migrating to Private Internet for
supply chain connectivity.
• OFTP 2, an industry developed open standard, is fast becoming the
leading protocol which is enabling internet based connectivity. OFTP 2 is
compliant to global auto industry connectivity requirements .
• Connectivity solutions are not one size fits all. Selection criteria is driven
by enterprise specific requirements.
• The AIAG working Group projects that Internet based connectivity
solutions are expected to save the automotive supply chain millions in
direct costs, within the next 5 years.
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