The Automotive Industry Action Group (AIAG), a US based consortium of carmakers and suppliers, has announced the release of a new system for handling automotive supply chain information that it says could reduce transport costs for inbound components and lower inventory.
As part of a project called Material Off-Shore Sourcing (MOSS), AIAG conducted a survey with AMR Research that looked at the way information was integrated by OEMs, suppliers, LSPs and customs brokers. It found that 79% of information is entered repeatedly and in a complicated variety of media. It also found that 15% of all inbound ocean containers are delayed en route because of missing or incorrect data caused by the use of multiple, error-prone entry systems.
The findings suggest that these inefficiencies in the supply chain lead companies to maintain expensive and excessive levels of inventory as they seek to prevent material shortages and production downtime.
AIAG claims that the new system is designed to iron out such inefficiencies, specifically targeting ocean shipments coming into the US. In a statement the organisation said that the system provides a broader viewpoint, including the many functions of the trade: sharing of forecasts and conveyance of orders, booking of transport, preparation of export and import documents, and reporting of shipment milestones.
Currently the focus of MOSS is inbound parts supply according to AIAG, but the organisation is also pursuing a visibility of finished vehicles (VOFV) project that is trying to utilise some of the same principles to address the problems in finished vehicle logistics.