Saab's supply chain solutions story Part One
Saab Automobile Parts AB is Saab Automotive’s main warehouse and distribution center for spare parts and accessories.
Based in Sweden, Saab Automobile Parts AB’s warehouse was established in 1969 when the Saab Car Division of Saab-Scania was created.
Saab manufactures cars for 60 countries worldwide and primary markets include the US, UK, Sweden, Germany, The Netherlands, Switzerland, Norway, Australia, Italy and France. Typically, the company produces 100,000 cars each year, and current models include the 9-3 and 9-5.
SAAB: BORN FROM JETS
Having been owned by General Motors (GM) since 1989, Saab was acquired by Spyker Cars NV in 2010. The automotive manufacturer has 6,000 employees and is based in Trollhattan, Sweden.
PICKING A SUPPLY CHAIN SOLUTION
Following its acquisition by Spyker cars in 2010, Saab faced two options with regards to its demand planning and supplier relationship management systems. It could continue to use those of its previous owner on a paid-for basis, or become completely independent from those systems.
The cost of ‘renting’ General Motors’ systems simply wasn’t sustainable so the parts company decided to implement its own.
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A timescale of six months was agreed for the data transfer, therefore Saab had to select and contract a supplier, and have absolute confidence that the solution could be implemented against the deadline. No contingency existed in meeting this deadline therefore Saab needed to work with a partner it could trust completely.
With 1,100 suppliers and 64,000 different parts, the specified systems had to be proven, scalable, robust and flexible.
Having used Infor10 Demand Planning (Infor SCM Demand Planning) in its capacity as a General Motors company, Saab decided to work with Infor to implement Demand Planning, as well as Infor10 Supplier Commerce Portal (SupplyWEB) which hadn’t been used previously, in its new entity.
CHECK BACK LATER TODAY TO FIND OUT MORE ABOUT SAAB’S AUTO SUPPLY CHAIN SOLUTIONS!
Edited by Kevin Scarpati
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany