Hero MotoCorp

How cloud-based exchange autoDX is set to transform the Indian automobile industry

For the extremely competitive Indian automobile industry, which constantly faces margin pressures, the autoDX plaform with its promise of delivering savings of up to 80% in transaction costs can prove to be truly revolutionary. Not surprisingly, prominent automotive OEMs and more than 90 auto-component manufacturers have signed on the platform

Driving benefits
Currently autoDX is in adoption phase; five OEMs are live in production-parallel run, while nine suppliers are live in Production-parallel run. Many others are in trial and configuration phase.

Based on the initial pilots run, a high number of benefits can be seen. There is end-to-end visibility across the supply chain (inventory, assets). For suppliers who deal with multiple OEMs, this visibility is beneficial for understanding and maintaining optimal inventory levels. Additionally, there is standardization of documents being used in the Indian automobile industry as internationally accepted practices have been adopted to facilitate supply chain harmonization.

Automation will also help in moving from being people dependent to a more process-oriented approach, which ensures timeliness and accuracy. Integration with in-house systems means elimination of effort duplication.

Explains Vijay Sethi, “autoDX will finally culminate in inventory reduction through the pipeline. We also envisage cost savings from faster and error free transaction processing, business process standardization, and through tighter integration between OEMs, Parts Suppliers, logistics partners,  warehouses and other stakeholders. With this initiative, companies can consolidate many SRM portals or other systems to one and integrate with Tier 1 to n partners at a much lower cost. It will also facilitate end-to-end traceability across the supply chain. As a result, there are huge benefits for every stakeholder in the ecosystem due to shared costs because of Cloud based platform.”

Going forward, the vision is to extend autoDx to other parts of value chain by integrating the platform with entities such as logistics providers, financial Institutions and the Government.

As autoDX becomes omnipresent, every stakeholder in the automotive industry will be able to connect with every OEM and supplier, regardless of geographic location, connectivity preferences, or technical requirements. Stakeholders will also be able to share information and collaborate with an existing network of trading partners, while reducing costs and driving efficiency throughout the supply chain. Data exchange will also be seamless regardless of disparate systems, locations, technical requirements, and processes.

The Indian automotive industry currently accounts for almost 7% of the country’s GDP and employs about 19 million people. In a competitive industry where margins are increasingly under pressure, savings of up to 80 percent in transaction costs will be highly beneficial and transformative in nature. If the portal succeeds in garnering more support from other organizations across industries, India can lead the race in bringing out innovative process differentiators in inventory and quality. This can lead to agile and responsive supply chains, which in turn, will help the industry maintain its competitiveness, and possibly emerge as a leading destination of choice for design and manufacture of automobiles and auto components.

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