Cupertino, CA -- (SBWIRE) -- 11/27/2013 -- A major automotive parts manufacturer decided to increase use of Ultriva Software. Currently the company has 80% of the total spend in CSP. According to the most recent Department of Commerce report, automotive parts consumption is linked to the demand for new vehicles, since roughly 70 percent of U.S. automotive parts production is for Original Equipment (OE) products. The remaining 30 percent is for repair and modification (aftermarket). Suppliers survived the downturn in 2009 and lower their break-even point, and 2014 is expected to be an exception year for the industry. Suppliers are increasing efficiency and lowering their break-even point according to the DOC report, allowing many suppliers to see some profit.
Known as a pioneer in kanban solutions, Ultriva CEO Narayan Laksham and the team of technology solutions professionals at the Cupertino-based firm are strongly advocating that automotive parts manufacturers integrate with the demand side to streamline the supply chain. This process is “End to End Pull” replenishment, also known as E2E. Laksham expanded, “This is clearly a paradigm shift compared to the constant focus on improving the planning or forecasts using better and superior algorithms. The primary goal of the E2E process is to schedule manufacturing production based on customer demand instead of forecasts while raw materials and components usage at the manufacturing facilities should drive replenishment to the upstream supply chain. This is also known as consumption driven replenishment or electronic kanban loops.”
Underlying the E2E process is real-time collaboration with the customers and suppliers. On-premise solutions, like MRP and ERP, do a great job for inside the four walls of business. E2E is best-suited outside the four walls of business.
Ultriva’s (http://www.ultriva.com) cloud-based platform leverages and seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment model. Ultriva is experiencing rapid growth with the wide adoption of E2E globally. Follow Ultriva on Twitter at @Ultriva.