The Automotive Industry Action Group (AIAG), a not-for-profit organization that helps companies operate at peak performance, has published Recommended Business Practices for Long-Distance Supply Chains, a comprehensive set of guidelines to identify waste, errors, and miscommunication across intercontinental ocean-going supply chains.
"Companies expect global shipments will be late, so they build waste and inefficiency into their operations to compensate for a bad process," said J. Scot Sharland, executive director of AIAG. "AIAG volunteers... have proven that it doesn't have to be that way. They have developed an affordable, easy-to-deploy system that will let companies reduce parts inventories and premium freight shipping costs, and dramatically reduce the time employees spend tracking shipments."
The guidelines are based on the findings of AIAG's Material Offshore Sourcing (MOSS) project, which studied ocean-going supply chains, including order, transport, and customs processes, to identify the root causes of errors that lead to shipping delays.
The new AIAG guidelines, developed by a team of 11 supplier and solution provider organizations led by Honda of America Manufacturing Inc. and General Motors Co., are built around a trade collaboration system that uses a cloud-based Internet solution with common message templates. Essentially, every member of a supply chain that adopts the guidelines will have visibility into a shipment at any point in time, and will be able to communicate with other participants via a secure Web pOréal using standardized forms.
Company: Automotive Industry Action Group
Company URL: www.aiag.org