The technology and consulting multinational IBM is deploying a B2B cloud-based network tool in the Indian automotive sector, that it said will help transform the industry by accelerating the movement of data amongst manufacturers, and reduce transaction costs by up to 80%.
Called AutoDX, the exchange tool was developed in partnership with the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Components Manufacturers Association (ACMA).
"This is the first industry-wide digital collaboration initiative for the Indian automotive sector and has the potential to transform the entire industry," said Vijay Sethi, CIO, Hero MotoCorp and chairman of SIAMÕs IT Committee. "AutoDX – using IBM's cloud computing platform – will greatly improve efficiencies and reduce costs across the entire system as the exchange of information on various critical logistics and financial transactions can now be done seamlessly between supply chain partners without any manual intervention."
Indian carmakers and parts suppliers have traditionally relied on manual processes to exchange transactional data, including the tens of thousands of invoices, purchase orders and shipping notices created each day. According to IBM this manual approach was prone to human error, extensive transaction delays and increased processing costs.
The company said the new exchange, which is built on IBMÕs Sterling B2B Collaboration Network technology, will eliminate these inefficiencies and drive faster, more accurate processing at reduced operational cost, helping ensure the right products are delivered to the right customers at the right time.
"There has been a lot of inconsistency with how transactional data is shared in India between manufacturers, suppliers and customers, resulting in processing delays, inaccurate transactions and other inefficiencies," said Sri Karumbati, CIO of SSS Springs and deputy chairman of the ACMA Technology Committee.
"ACMA and SIAM are excited to come together with IBM and take advantage of its decades of experience in supply chain technology to help build a platform that enables all of our members to exchange data quickly, accurately and in a safe and secure manner."