Schenker, a leading global supplier of integrated logistics services, has constructed an ultra-modern production supply center in Hanover for Volkswagen Commercial Vehicles (VWCV):
the objective is to deliver the vehicle parts to the assembly line in a timely way and in accordance with the just-in-sequence principle.
Due to the specialist requirements specific to the automotive industry, a SAP industry solution is also in use in addition to mySAP SCM and SAP for Automotive. This ensures optimal support for the processes in the associated supplier park: they are quicker, simpler and safer than before. Thanks to multi-customer warehousing, all suppliers in the warehouse can be managed.
Schenker, a subsidiary of Stinnes, is one of the leading integrated logistics service providers globally. Schenker acts as a single point of reference for the supply of land transportation, air and maritime freight, as well as comprehensive logistics solutions and global supply chain management. Stinnes is part of Deutsche Bahn AG.
Increasing competitive pressure is forcing the automotive industry to shorten their delivery timescales more and more. Schenker, which has operated as a logistics service provider for VWCV since 1988, accommodated this requirement by building a 36,000 m2 production supply center (PSC).
The PSC significantly simplifies and speeds up the transport of vehicle parts to the VWCV assembly lines. A 360-meter-long bridge has been built between the logistics center with its supplier park and the production buildings. Around 1,100 JIS containers of assembly parts are transported to the VW factory assembly lines on a daily basis across this bridge. These are electric vehicles, which deliver the individual parts in precisely the right order to the assembly areas.
For the production of the new T5 transporters employees handle approximately 40 truckloads daily in the supplier park linked to the PSC. This includes around 2,000 different vendor parts from a dozen different suppliers. SAP for Automotive and mySAP Supply Chain Management ensure a seamless process flow.
Based on a feasibility study, within six months SAP specialists from the Schenker headquarters in Essen and the management consultancy firm IGZ, together with the logistics experts on site, introduced a system.
“When we were looking around for a software solution for the supplier park our positive experiences from earlier projects prompted us to go for SAP,” explains Nzo-Nkatu Kusu-Kanza, System Engineering Project Director at the Schenker headquarters in Essen. “The high system availability and performance, the future-proof design against new requirements, the good price-performance ratio and the prevalence of SAP solutions in the automotive industry all came into the equation as well.”
Today, SAP optimizes all processes in the supplier park:
from goods receipt, storage, picking and sequencing to pre-assembly, forklift control and labeling to warehousing and timely supply to the assembly lines. Multi-customer warehousing allows inventories from all suppliers to be managed and monitored in the warehouse. Using SAP offers unique benefits: with the SAP Console radio data transmission devices can be directly linked to the SAP system. Through this, the scanner-enabled transactions are booked online in the system. The management of the assembled handling units of goods for production is affected via SAP Handling Unit Management. This therefore ensures that the inventory information and the history of the material flow shown in the handling units are available at any time.
Schenker’s service offering goes much further, however. With the SAP solution the logistics service provider also takes on the pre-assembly of modules in the supplier park and the timely delivery of these to the assembly lines. The production call for the final assembly of all floor coverings, for example, contains, in addition to an item number, a code for the punch that is output on the assembly list. The punch machine is controlled by scanning this code and the corresponding punches are made.
SAP campaign management ensures that the assembly lines are supplied Just-in-Sequence: it groups the materials ordered into JIS racks that are in turn organized into JIS convoys and delivered to the VWCV production lines in the correct sequence.
Quick turnover; satisfied clients:
“Thanks to SAP R/3 the goods supplied can be handled more quickly and the jobs fulfilled faster,” is the conclusion from the team at Schenker. “This reduces the workload and noticeably increases customer satisfaction.”
Due to its modular construction the SAP system landscape can be modified to meet altered requirements, but can also be reused for transactions with similar processes: “It makes it straightforward for us to integrate other partners within our VWCV supplier network.”
“SAP has developed outstanding industry standards for the processes and IT environments within the automotive industry. We were therefore able to implement the supplier park process requirements as far as possible in SAP Standard.”
- Warehouse (m2) 17,000
- Pallet spaces 6,000
- Layers 3
- Production-synchronous requests (PSR) / day 10,500
- Inbound handling units/day 1,100
- Sequencing operation 16,000
- Max. cycle time EDI messages 2.44 min
- JIS container / day 500
- JIS convoys / day 260
- Production lines 2