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August, 2016
Customized Logistics Systems with Electronic Interfaces
By Christine Schulze
management with intelligent inter- faces for procurement automation is of particular importance. Such sys- tems increase the security of supply and the quality of processes, which
A
s the smart factory ideal becomes reality, a well-devel- oped system of supply chain
the distributor’s total revenue is gen- erated through this segment. Among the logistics customers are a number of globally-operating, top-tier busi- nesses from the automotive industry. Also, a major share of the revenue comes from more than 150 consign- ment stores throughout the world. “Each logistics system
Rutronik services its customers from a single, streamlined backup warehouse.
leads to both reduced process costs and tied-up capital. A growing number of businesses
are recognizing the benefits of today’s logistics systems and are ben- efitting from almost 100 percent sup- ply security. Since Rutronik entered the logistics business in 1996, supply chain management solutions have become a large part of the company’s business. Today, about 40 percent of
is adapted to the specific needs of the customer, so that even with the more than 500 different Rutronik logistics systems and cus- tomers, no two logistics sys- tems are ever exactly the same.” says Joachim Kaiser, head of logistics at Rutronik. Even if today’s logistics sys- tems are based on the three traditional models of con- signment, kanban, and delivery schedules, they can vary greatly, even within the same company.
The best solution for any given
customer depends on the specific cir- cumstances and the relevance of sev- eral factors, for example, how much space is available in the goods receiv- ing or storage areas and how regular production takes place. These factors are analyzed, and a system is imple- mented, so that each customer is pro- vided with a logistics system tailored to its needs.
We can provide what you need.
Using tracking technology, the company provides continuous traceability of components.
forecasts as early as possible. The company then imports these into its system and uses them for long-term planning and developing a backlog management system to ensure avail- ability and flexibility. In addition, the company uses only a single back- up warehouse to keep costs low. “We have the means to provide
our franchise manufacturers with this planning information for months in advance, ensuring that we know which items the customer needs, when and in roughly what quantity,” explains Kaiser. “Even during alloca- tion periods for specific items, this detailed information enables us to achieve a delivery performance rate of 99 percent.” Where smart factory-related
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processes need to be faster, the logis- tics systems also need to ensure that data is sent completely electronical- ly. Rutronik has been using electron- ic data interchange (EDI) for a long time, which has generated huge cost savings on both ends of the supply chain with automatic uploads and downloads, and maintained high process efficiency. Automated order processes drastically reduce the potential for errors on both sides. Many customers already send struc- tured messages such as Edifact and VDA. The company also processes SAP IDocs and standardized mes- sages, as well as any text, CSV or XML file. “A product manager can automatically perform mapping using a specialized front end; this is enough to generate the forecast and order,” says Kaiser. “Compared with manual inputs, automated uploads and downloads reduce the number of errors made several times over. We achieve a great deal of transparency and high delivery security by doing this. Also, it simplifies or renders obsolete many steps in the procure-
nesses globally with the same logis- tics services, for example with cus- tomer-specific labels. “In principle, it makes no differ-
ence if a consignment store is in Mexico or Europe, relevant tax and contract terms and regulations not - withstanding,” says Kaiser.
Reliability and Communication As a broadline distributor, the
company works to serve its cus- tomers efficiently, as they often meet more than 80 to 90 percent of their component needs through Rutronik’s services— around the globe. The fore- cast data of the customers provides the basis for procurement and deliv- ery processes that are practically identical in any logistics system. Customers are asked to provide their
ment process.” This increases the speed of the
process and prioritizes reliability. Rutronik’s selling point is its world- wide uniform computer system, which provides redundancy support, accessible from all offices around the world. Also, the company is not con- strained by local profit centers in dif- ferent continents, which enables cus- tomers to be supplied around the world without any problems. This allows the distributor to serve busi-
From its data center, the company has established a computer network throughout the world.
Precisely controlled logistics
processes also play a key role in terms of traceability. Especially with expen- sive equipment that has considerable liability, continuous traceability of components and units along the entire
supply chain is indispensable. Contact: Rutronik, Inc., 3
Summit Park Drive, Suite 535, Cleveland, OH 44131 % 216-328-8900 fax: 216-573-0650 E-mail:
sales-na@rutronik.com Web:
www.rutronik.com r
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