IBM Cloud Network Connects India's Automotive Industry

March 20, 2014
The AutoDX cloud-based exchange is designed to standardize and automate transactions throughout India’s automotive supply chain.

Using cloud technology in a way that can reportedly reduce transaction costs by up to 80 percent, IBM has deployed a business-to-business (B2B) cloud-based network that it says will “help transform the Indian automotive industry by accelerating the movement of data and reducing transaction costs.” The cloud is being used to host a new exchange called AutoDX, which was developed by IBM in partnership with the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Components Manufacturers Association (ACMA).

Prior to the launch of this exchange, IBM says that Indian auto manufacturers and parts suppliers largely relied on manual processes to “exchange transactional data, including tens of thousands of invoices, purchase orders and shipping notices created each day.” Needless to say, any sort of manual approach to an industrial process this widespread is prone to human error, transaction delays and all the associated processing costs that accompany such problems.

AutoDX, which is built on the IBM Sterling B2B Collaboration Network technology, will reportedly eliminate these inefficiencies by standardizing, automating and accelerating the exchange of transactional data through the cloud. IBM worked with ACMA and SIAM to develop common standards for AutoDX that are specifically designed for the Indian auto industry. By deploying the exchange in the cloud, IBM contends that India’s auto manufacturers and suppliers can “quickly and easily adopt these standards while enabling the network to scale over time.”

Representing more than 750 of India’s auto manufacturers and parts suppliers, ACMA and SIAM expect the majority of its members to adopt the platform by the end of the year. According to IBM, several auto OEMs and suppliers have already integrated AutoDX into their processes, including Tata Motors, Hero MotoCorp, SSS Springs and Sundram Fasteners.

In addition, use of IBM’s cloud-based network opens additional connections for India’s auto industry to more 160,000 organizations that currently use the IBM Sterling B2B Collaboration Network.

“This is the first industry-wide digital collaboration initiative for the Indian automotive sector and has the potential to transform the entire industry," said Vijay Sethi, CIO, Hero MotoCorp Ltd. and Chairman of the SIAM IT Committee. “AutoDX 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.”
IBM says it plans to extend the AutoDX platform to trading partners, logistics providers, banks and other entities that interact with Indian auto OEMs and suppliers on a regular basis.

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