Demand and capacity management

Multiple influencing factors, for example turbulence in the global economy, technological change or the limited availability of resources cause a high level of volatility in automotive value chains. The insufficient transparency and networking of partners often leads to a loss of information, the occurrence of capacity bottlenecks, interrupted supply chains and the need for a high level of effort for rescheduling. In the worst case, this will lead to serious disruptions or even to a temporary standstill in vehicle or parts production. The result of this is, in many cases, a constraint in fulfilling the demands of end customers.

Balancing demand and capacity

This is exactly where the Catena-X use case of demand and capacity management (DCM) helps: It enables a secure exchange of demand and capacity data, as well as cooperation between all the partners involved in the automotive network: from raw material suppliers to n-tier suppliers to automotive manufacturers.

In protected spaces with a common view of the data released, the partners can react collaboratively to plan changes and deviations at an early stage in relation to the situation, and then find a solution to the problem.

Standardised application

The basis for the successful cross-company process is provided by a uniform and standardised format, as well as by agreed quality criteria for exchanging demand and capacity data. These have been defined by involved partners from the entire value chain within the Catena-X consortium. 

Right now, a first application for the Catena-X App Store is being developed, which initially pursues the following goals:

1. Implementation of a coordinated standard for high-quality demand and capacity data
2. Creation of a common view at the “single point of truth” while maintaining data sovereignty
3. Early warning of bottlenecks and problems
4. Collaboration and solution finding within an application

Thanks to networking, the application offers a high degree of user-friendliness with little need for maintenance while at the same time, data sovereignty is ensured. The application offers a common view (“single point of truth”) of mutually shared data.

This means that both partners will always have the same data status to assess the situation while ensuring data sovereignty in accordance with European security guidelines. 

 

Bottlenecks can be identified, resolved and avoided at an early stage as the system issues proactive alerts. In addition, companies lower down the supply chain should be able to actively pass on information about problems upwards through the network, to quickly find a common solution if needed.

The application provides opportunities for collaborate directly in the tool, across company boundaries, and to find mutual solutions to the problems, based on the data shared. The networking and compatible architecture of the application enable users to contact all business partners - whether supplier or customer - at the same time. This avoids a cumbersome and time-consuming multiple registration in different isolated solutions.

SMEs and other functions

Initially, the focus is on giving small and medium-sized companies with a lower degree of digitalisation access to the demand and capacity management process and reap the associated benefits. Then after all, not all companies already have an infrastructure that can identify bottlenecks or impending overproduction at an early stage.

Agile software development involves the continuous development and improvement of the application. Functions such as advanced trend analyses, network notifications and simulation functionalities across several stages of the supply chain are already being discussed.

Please feel free to stay in touch with us.

This is a work result of the

Catena-X Automotive Network Consortium Project,

supported by the German Federal Ministry for Economic Affairs and Climate Action.

Funding code: 13IK004*

 

 

Jürgen  Schuberthan

Jürgen Schuberthan

Business Owner

Exchange with Catena-X