Case Study on CT Automotive

About The Customer

Chinatool Automotive excels in designing, developing, and manufacturing automotive interior finishes and intricate kinematic assemblies for prominent automotive brands globally.
These essential components are managed through a sophisticated global network of responsive supply chains to ensure Just in Time (JIT) delivery at their respective OEM manufacturing plants.

Opportunities

Chinatool Automotive relies heavily on precise customer forecasts, which dictate production schedules. These forecasts are communicated through Electronic Data Interchange (EDI), making EDI an essential part of their operations.

Initially, they partnered with a third-party provider to meet their EDI needs but encountered several inefficiencies, including long response times. This prompted the decision to transition to a different EDI partner to enhance performance.

The Solution

A new vendor was recommended to integrate Business Central with EDI to address these challenges. During the transition, several opportunities for improvement were identified:

• Enhanced Understanding of EDI Information: Users needed to deepen their understanding of the EDI information shared by customers. This required thorough investigation to gather all necessary data exchanged during different processing stages.
• Seamless Integration with Third Parties: Collaborating with third parties was essential to establish a system that met customer requirements effectively.
• Efficient API Communication: APIs were used to facilitate communication with the EDI channel, accommodating various formats and forecast logic for each customer within Business Central.

The planning engine of Business Central played a crucial role in scheduling production, ensuring timely delivery of materials, and avoiding penalties. This integration streamlined production planning and significantly improved overall efficiency.

The Benefits

The implementation of a new EDI vendor and integration with Business Central provided numerous benefits:

• Enhanced Forecast Accuracy: The new EDI solution improved the accuracy of customer forecasts, leading to better production planning.
• Quicker Response Times: The new system addressed the issue of long response times, ensuring faster and more reliable communication.
• Customisable Solutions: Using APIs, the system could handle various customer-specific formats and forecast logic, providing tailored solutions for each customer.
• Penalty Avoidance: The improved planning engine and timely production schedules helped Chinatool Automotive avoid penalties associated with late deliveries.

Conclusion

Chinatool Automotive successfully transitioned to a new EDI partner, overcoming initial challenges and significantly enhancing operational efficiency. This case study underscores the importance of accurate forecasting, efficient EDI integration, and adaptable solutions to meet diverse customer requirements in the automotive industry.