AUBURN HILLS, Mich.,
Feb. 18, 2014 /PRNewswire/
-- BorgWarner's Supplier Performance Monitor (SPM) system uses
artificial intelligence and sophisticated mathematical theories to
analyze current supplier performance and forecast future trends.
The easy-to-install software can be transferred to new locations
and improves supply chain response times significantly. Originally
launched in Germany and
Ireland, BorgWarner intends to
implement the user-friendly software in the United States and other parts of
Europe beginning in early 2014
followed by India and China later this year. BorgWarner's SPM system
has been awarded several honors such as the Supply Chain Innovation
Award 2012 and the VDA (German Automotive Industry Association)
Logistics Award 2013.
(Photo: http://photos.prnewswire.com/prnh/20140218/DE66539)
"BorgWarner's Supplier Performance Monitor system analyzes
actual data on quantity and delivery reliability, and significantly
simplifies processes," said Brady
Ericson, President and General Manager, BorgWarner BERU
Systems. "We have received fantastic feedback from our suppliers on
this ground-breaking innovation. The SPM system helps us jointly
identify problems and proactively manage situations at an early
stage."
To accommodate the dynamic global economy where suppliers must
work in close partnership with their customers throughout the
supply chain, BorgWarner developed the SPM system to optimize its
supplier network as well as its own performance. Based on the
stochastic Hidden Markov Model, BorgWarner's software tool uses
artificial intelligence and probability methods to evaluate
existing mass data from enterprise resource planning (ERP) systems
including data on orders, deliveries and cancellations as well as
master, financial and quality data. Users receive information on
past, current and future performance as well as the status of
specific measures and indicators. BorgWarner's SPM system improves
collaboration between all supply chain functions by involving all
suppliers, revealing potential risks early.
More than 90 percent of BorgWarner BERU Systems' suppliers
currently participate in the SPM system, which has optimized
delivery performance and reduced delivery times by 60 percent. In
addition, BorgWarner BERU Systems achieved a 33 percent drop in
parts failure (PPM) from suppliers in 2012 compared with the
previous year.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a product leader in highly
engineered components and systems for powertrains around the world.
Operating manufacturing and technical facilities in 56 locations in
19 countries, the company delivers innovative powertrain solutions
to improve fuel economy, reduce emissions and enhance performance.
For more information, please visit borgwarner.com.
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include: fluctuations in domestic or foreign vehicle production,
the continued use by original equipment manufacturers of outside
suppliers, fluctuations in demand for vehicles containing our
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SOURCE BorgWarner Inc.