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KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
Matthias Lühr (K-PLLX/B)
Procedural use of global standards
for logistics
KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
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In the past few years, the Volkswagen Group has continuously increased
the number of vehicle deliveries
Vehicle deliveries [per million]
9.2769.731
6.336
7.203
8.265
10.137
2009 2010 2011 2012 2013 2014
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 2
KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
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Volkswagen Group has 119 production sites worldwide
Brazil 6
Argentina 3 South Africa 4
Mexico 3 China 20
USA 1
Production sites Production sites under construction
1) Asean: Malaysia, South Korea, Thailand, Taiwan
Germany 29
Poland 8
Spain 4
Czech Republic 4
France 3
Russia 3
Sweden 3
Denmark 2
Italy 2
Netherlands 2
Switzerland 2
Slowakia 2
Belgium 1
Bosnia-Herzegovina 1
Finland 1
United Kingdom 1
Austria 1
Portugal 1
Turkey 1
Hungary 1
Number of production sites: 119
India 5
Asean 5 1)
Europe 72
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 3
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One of the challenges is to control the complexity in the transport network
of the Group Plants in Europe
72 production sites
of all brands in Europe
ca. 6,000 suppliers
in Europe > 28,000
delivery relations
> 9,2 million
delivery notes/ p.a.
> 200
Carriers
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 4
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Suppliers, carriers and the Volkswagen Group must be able to rely on each
other in order to cope with the complexity together
Suppliers
> 6000
Carriers
> 200
Group Plants
72
In this example:
1 Production Plant
4 Suppliers
3 Carriers
11 Interfaces
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Our current information flow requirements take on a new significance
Complexity increases Stock decreases Quality of information
must improve
Suppliers Carriers Volkswagen Standardised call off
Punctual collection
Correct notification & provision
Punctual delivery
Correct labels &
accompanying
documents
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 6
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0 Logistics processes were few and
simple
Catchment area was local
The EDI standards from the 1980s are no longer sufficient as regards the
present day requirements
In the past Today and the future
Many complex logistical processes
Worldwide EDI communication due to
globalised Group
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 7
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CURRENT status in today's EDI supplier communication
Security No process security with transferring coded information
Test Tests are not possible
A lot of variants make roll-out difficult
Processes Only simple processes can be mapped
Extensions stretch beyond the standard
Variants Many process-related variants beyond VDA standards
EDI communication
is no longer in line with future requirements
Support Higher support efforts
Several formats for each process
Area of
application
Focus on local area
Additional message formats are required in the international environment
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 8
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VDA has created standards for the German automobile industry based on global
EDI messages
VDA standards agreed upon mutually by Volkswagen, AUDI, Porsche, BMW,
1st level suppliers and IT service providers
Global standards for the standard logistics process are complete
Call-offs VDA 4984 (Global DELFOR)
Delivery note VDA 4987 (Global DESADV)
Accompanying
documents VDA 4939 (Transport and dispatch notes)
Container note GTL (Global Transport Label)
New global standards were developed as part of the VDA (German
Association of the Automotive Industry)
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 9
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Benefits and opportunities of the new global messaging
Additional transfer of uncoded information
(e.g. place of unloading, planning data)
Roll-out of new processes, messages or the integration of new
suppliers are separate from the operative business (test messages)
Simplicity Reducing the complexity
(e.g. 1 call-off form, instead of 8)
Transparent and flexible process support
(Process identification clearly helps to process the message)
Security in the logistical processes
Processes
Security
Roll-out
10-digit format of the supplier number
for Volkswagen and Audi Standardisation
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 10
KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
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Master data is stored centrally at
Volkswagen and is sent with the message
Contact partners in Volkswagen plants are
specified in the message
Labelling for arrival date or collection date
Only key information is transferred, so
master data must be maintained in a
decentralised way
Different coding for the suppliers numbers
No difference between arrival date and
collection date
VDA 4984 Global DELFOR – More qualified information for the
suppliers with the new message format
Suppliers Carriers Volkswagen
VDA 4984 (Global DELFOR)
Current status With use of VDA 4984
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 11
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Standard format can also be used for
carriers
Main route planning possible for carriers
Improved tracking with advance
information to process partner
Work errors are reduced when recording
due to improved notification quality
Not all packaging structures are
communicated
The use of different formats make it more
complicated for additional process partners
to use
Different coding for the suppliers numbers
(10-digit)
VDA 4987 Global DESADV – Use of standard notification for
process participants
Suppliers Carriers Volkswagen
Current status With use of VDA 4987
VDA 4987 (Global DESADV)
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 12
KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
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The key information is always at the same
place
Work errors are minimised
Optimised documents accelerates the work
steps for the unloading processes
Tracking at the sending level is possible
The lack of standard accompanying
papers leads to work errors
Searching for key information on the
papers is time-consuming
The documents aren‘t optimised for the
individual work steps
VDA 4939 transport and dispatch notes – Use in material flow with
standard accompanying papers from all suppliers
Suppliers Carriers Volkswagen
Current status VDA 4939 universal introduction
VDA 4939 (transport and
dispatch notes)
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 13
KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
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Universal control and tracking is possible
at container level with the EDI delivery note
Less time consuming due to no more note
changing
Less work errors due to no more note
changing in the process
VDA 4902 is not clearly identified
VDA 4902 is not an international standard
Use of universal single note process is
restricted
GTL Global Transport Label – Clear identification of the container in the
entire process chain
Suppliers Carriers Volkswagen
Current status Universal introduction of the GTL
GTL (Global Transport Label)
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 14
KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
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The new VDA standards enable all those involved to achieve
improvements in the processes
Group plants Carrier Supplier
• No decentralised master
data necessary
• Flexible messaging
simplifies adjustments
for process
modifications
• Less clearing processes
• Punctual payments
• Standardised delivery
papers
• Prevents work errors
• Reduces handling
workload
• Standardised delivery
papers
• Prevents work errors
• Reduces handling
workload
K-PLLX/B | M. Lühr | 27.05.2015 | Procedural use of global standards.pptx | Page 15
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KONZERN-PRODUKTIONK-P KONZERN-PRODUKTIONK-P
Thank you for your attention!