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IBM Cloud-Based Exchange Helps Transform Indian Automotive Industry

New exchange will reduce transaction costs by up to 80 percent for India’s top auto manufacturers and suppliers

IBM on Wednesday announced it has deployed a business-to-business (B2B) cloud-based network that will help transform the Indian automotive industry by accelerating the movement of data and reducing transaction costs by up to 80 percent. The new exchange - AutoDX - was developed in partnership with the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Components Manufacturers Association (ACMA), the two leading industry bodies in the Indian automotive industry.

Until now, Indian auto manufacturers and parts suppliers have relied on manual processes to exchange transactional data, including the tens of thousands of invoices, purchase orders and shipping notices created each day. This manual approach was prone to human error, extensive transaction delays and increased processing costs. The new exchange - which is built on IBM Sterling B2B Collaboration Network technology - will eliminate these inefficiencies by standardizing, automating and accelerating the exchange of transactional data through the cloud. This will enable members to drive faster, more accurate processing at reduced operational cost, helping ensure the right products are delivered to the right customers at the right time.

"This is the first industry wide digital collaboration initiative for the Indian automotive sector and has the potential to transform the entire industry," said Mr. Vijay Sethi, CIO, Hero MotoCorp Ltd & Chairman, SIAM IT Committee. "AutoDX - using IBM's cloud computing platform - will greatly improve efficiencies and reduce costs across the entire ecosystem as the exchange of information on various critical logistics and financial transactions can now be done seamlessly between supply chain partners without any manual intervention."

"There has been a lot of inconsistency with how transactional data is shared in India between manufacturers, suppliers and customers, resulting in processing delays, inaccurate transactions and other inefficiencies," said Sri Karumbati, CIO of SSS Springs and Deputy Chairman of the ACMA Technology Committee. "ACMA and SIAM are excited to come together with IBM and take advantage of its decades of experience in supply chain technology to help build a platform that enables all of our members to exchange data quickly, accurately and in a safe and secure manner."

Representing over 750 of India's top auto manufacturers and parts suppliers, ACMA and SIAM expect the majority of its members to adopt the platform by the end of the year, making IBM the prevailing provider for Electronic Data Interchange in India for the auto industry. Leading auto OEMs and suppliers have already integrated AutoDX into their processes, including Tata Motors, Hero MotoCorp, SSS Springs and Sundram Fasteners. The platform benefits will also be extended via the cloud to trading partners, logistics providers, banks and other entities that interact with Indian auto OEMs and suppliers on a regular basis.

"This is a path breaking, industry-wide initiative that seeks to create an overarching platform for the entire Indian automobile industry," said Jagdish Belwal, CIO, Tata Motors. "This system created by IBM will go a long way in improving overall efficiencies across the entire automotive ecosystem by standardizing the data definitions, data interchange formats and therefore expanding the possibilities of automation."

IBM worked closely with ACMA and SIAM to develop common standards specifically for the Indian auto industry to help it prosper and compete on a global scale. By deploying the exchange in the cloud, auto manufacturers and suppliers can quickly and easily adopt these standards while enabling the network to scale over time. The cloud also opens additional connections for the India auto industry to over 160,000 organizations around the world that already use IBM Sterling B2B Collaboration Network - which processes over 1.9 billion transactions per year and sits at the heart of AutoDX. The IBM Sterling B2B Collaboration Network is one of more than 100 software-as-a-service (SaaS) offerings from IBM enabling supply chain, marketing, procurement, HR, legal, finance and more business functions to drive top-line growth and bottom line profitability in the cloud.

The exchange is based on solutions from IBM's Smarter Commerce initiative, which features software and services that help companies transform their business processes to more quickly respond to shifting customer demands in today's digitally-transformed marketplace. The initiative is driven by leading organizations that want to deepen their relationships with their customers and secure greater brand loyalty and advocacy. More information on Smarter Commerce can be found at www.ibm.com/smarterplanet/us/en/smarter_commerce/overview/.

More Stories By Elizabeth White

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