BMW GROUP

The Challenge:

FINDING AN APPLICATION ALIGNED WITH BMW’S SUPPLY TEMPLATES

Software Requirements

BMW’s challenge was to find an application that would best match the different supply templates in both production and non-production materials.

Production

The inquiry process is geared to a few BMW Quotation Analysis Forms (QAF). In these QAFs, the cost components of the parts to be procured are presented in detail by the supplier. Further, the database can be drawn from source systems and key figure reporting is firmly established.

Non-Production

Inquiries in non-production material are characterized by group-specific detail requirements. Standardization is achieved as the application manages the balancing act between flexibility and complexity, on the one hand, and usability on the other hand.

Full integration in portal M, the buyer’s cockpit of the BMW Group.

The Solution:

QAD AS A FULL-SERVICE PROVIDER

Outsourced Auction Management

QAD acts as a full-service provider to BMW. All auction results, whether conventional (a more common variant) or finalized by auction, are syndicated into the portal M, documented, and a supplier recommendation is created.

More About the Portal M

Portal M, the heart of the BMW Group‘s purchasing systems, is the central interface that maps and controls ALL processes in the purchasing department. All users involved in the process engage in a role-based basis within necessary phases. The portal M also ensures the syndication of all relevant data across application boundaries, without media discontinuity.

The Benefits:

INCREASED SUPPLIER COLLABORATION, AUCTIONS AND REDUCED SUPPLIER RISK

With QAD SRM, customers are offered the opportunity to benefit from:

• Lowering process costs
• More effective sourcing events 
• Shortened cycle time to part qualification 
• Strong compliance
• Increased supplier collaboration 
• Reduced supplier and part risk 
• Complete visibility, across functions 
• Automating processes and best practices

Phase 1 (inquiry preparation)

The requirements from various upstream systems are identified and available within the portal M. The interdisciplinary collaboration between Cost Engineering, R & D, Logistics, Quality and Purchasing includes the examination of existing contracts, the coordination of the award procedure, the preparation of the inquiry documents and specifications.  Subsequently, the bidders vote for the respective process.

Phase 2 (execution of the request)

After approval of the process, all relevant data becomes available in QAD SRM’s  Sourcing module. Invited suppliers view the specifications and submit their offers. The quotations are detailed by the supplier, within their product group-specific or cost analysis structures, and results are automatically combined into supply levels.

Phase 3 (award decision)

After technical and professional approvals, several rounds of evaluations and negotiations occur – and, in certain cases, buyers leverage QAD SRM’s s Auctions module as an additional negotiation mechanism.

Phase 4 (order creation)

Following the decision of the awarding committee, the order is created, and the procurement tracking and performance/delivery confirmation is posted.