SCiP Digitalization: Efficient automotive supply chain | ICS

The automotive industry faces the challenge of efficiently structuring its highly complex supply chains. As a proactive pioneer in the automotive industry, Mercedes-Benz Group AG is setting new standards in the efficient design of highly complex supply chains. To meet this demand, the company has launched Supply Chain integrated Planning (SCiP ) - an innovative system with a large number of seamlessly interacting modules. SCiP optimizes the entire supply chain of components, from the supplier's delivery to the production facility and back again. SCiP is an integral part of forward-looking and resource-saving planning.

ICS - Informatik Consulting Systems GmbH plays a central role in this process with its PLT (load carrier planning) module. It ensures that millions of components can be packed, transported and stored efficiently and cost-effectively. It calculates down to the cent which load carriers (LTs) are optimal for which purpose.

Problem definition

Before the introduction of the PLT module, the planning of load carriers was organized in a monolithic, isolated tool. This decentralized approach led to

• High time expenditure due to manual planning.

• Inefficient use of resources due to suboptimal automation.

• Wrong decisions, as planners had to work in several systems, making it very challenging to have a complete overview of all LTs.

• Unnecessary costs, as a lot of time had to be invested in interfaces to other monoliths.
  

The challenge

The implementation of the project was technically and organizationally challenging. These included:

• Data volume: Around 20 million entries had to be processed with high performance. This high data load required an optimized architecture with powerful index structures and efficient search mechanisms.

• High level of networking: SCiP modules from various service providers had to be seamlessly integrated.

• Real-time data: Planning requires daily updated stocks and demand figures.

• Project management: A large-scale project with many participants that had to go live within a short period of time.

• Agile adaptation: The team size fluctuated between 2 and 12 developers depending on the cycle achieved, and onboarding processes had to be designed flexibly.

• Stakeholder management: Different interests within the company required diplomatic skills.

• Different materials: Some components are electrostatically sensitive (ESD-sensitive), others require special covers or need to be optimized for transport in trucks to save space. Therefore, in addition to standard packaging, special packaging is also required for special needs.

The ICS solution: PLT module

ICS developed a cloud-based application that systematically supports planners in the optimization of load carriers. The solution offers:

• Automated planning: suggestions for cost-effective LT combinations based on material, dimensions and delivery processes.

• Integration with SAP: SCiP is strongly networked with other systems and obtains its data via the load carrier management system (LTM), which has been undergoing further development at ICS for 30 years. While LTM has a direct interface to SAP, SCiP uses this data to further optimize logistics processes.

• High user-friendliness: planners can filter by individual attributes to find the optimum LT.

• Cost analysis: considers whether it is cheaper to rent LTs or produce new ones.

• Future-oriented simulation: Enables long-term planning for future vehicle models.

Implementation

The agile development of the module was carried out in close cooperation with other SCiP service providers. A SCRUM process with regular reviews, dailies and planning meetings ensured that everyone involved was kept up to date.

Challenges during implementation:

• Technical coordination with the other modules

• High demands on performance and stability

• Political hurdles in the internal acceptance of the SCiPsystem

• Complex security requirements (including geo-redundancy for critical data availability)

Through intensive cooperation with the planners and a continuous improvement process, the module was optimally adapted to the requirements.

Results & successes

Conclusion & future outlook

With the successful implementation of the PLT module, ICS has made an important contribution to optimizing the supply chain. The solution is constantly being further developed to support new requirements and vehicle models. Thanks to the deep integration into SCiP, the system remains relevant and flexibly adaptable in the long term.

The project shows how an efficient, scalable and cost-optimized solutioncan be created through agile development and close collaboration between technology partners and industry.

Would you like to optimize your supply chain processes? Contact us for an individual consultation and find out how ICS can help you take your logistics and planning processes to the next level!