Case study
Optimizing supply chain management at AGC Automotive Replacement Glass (Europe)
AGC Automotive Replacement Glass is the European automotive glass branch of the AGC Group. The AGC Group, with Tokyo-based AGC Inc. at its core, is a world-leading supplier of flat, automotive and display glass, chemicals and other high-tech materials and components.
AGC Automotive Replacement Glass specializes in production of windows (OEM and replacement) for vehicle manufacturers. It also provides ready-to-assemble systems (fixation devices), higher value-added functional systems (antennas, sensors, heating elements) and enhanced property glazing (improved thermal, sound and vision comfort).
What was the project objective?
The objective of the joint 12-week project was to identify and assess potential improvements to supply chain management, so AGC Automotive Replacement Glass in Europe could continue to serve its customers effectively.
Our Digital Operations team conducted a thorough assessment, pinpointed areas for enhancement, and defined a roadmap to elevate AGC's strong performance to even higher levels. This will help ensure timely delivery of products, in the required quality and quantity, at the right cost, while maintaining minimum inventories.
Moving from multiple separate supply chain and production activities to one connected flow of information and materials.
What was the overall process?
The realisation of the joint project between AGC Automotive Replacement Glass in Europe and PwC took place in three stages:
Phase I – 4 weeks:
Detailed mapping and analysis of key supply chain areas and interconnections, and an analysis of the profitability of products and customers and delivery times for production and distribution.
Phase II – 4 weeks:
The second phase was concluded by a joint workshop with production and supply chain leaders in one of the manufacturing plants with the objective of segmenting products by production complexity and customers by their expectations and needs.
Phase III – 4 weeks:
The final phase was focused on creating a supply chain strategy and its interconnection with the established product and customer segmentation.
One of the key factors addressed during the project was the implications of the proposed changes to the entire supply chain for the current SAP S/4HANA system. Our IT experts provided extensive support with the design of the right solution and setting the ERP system to the new required state.
What did we achieve together?
Changing the supply chain strategy will lead to:
- better stock management
- increased cash flow
- reduced obsolescence
- enhanced flow tracking
- improved overall operational efficiency
- stronger supplier relationships and more sustainable business growth
The final proposal of the Supply Chain strategy included a concept to achieve full visibility of the Supply Chain as regards key processes and ERP systems, aiming to increase competitiveness, supply chain agility, and responsiveness to customer demands.
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