IBM eyes auto suppliers with cloud-based data exchange network

IBM India has deployed its AutoDX business-to-business (B2B) cloud-based network targeted at auto OEs and their suppliers which it says can make data movements faster and more efficient between these players, and in the process, reduce transaction costs by up to 80 percent.

The company hopes to get the automotive fraternity to use AutoDx to move up technologically from manual processes that predominate now and include tens of thousands of invoices, invoices and shipping notices created every day.

Neelakantan V, country leader, manufacturing, IBM India, told Autocar Professional that IBM has a two-part scale-out plan. In the first part, it aims to add more processes to AutoDX and in the second part, get the larger eco-system surrounding suppliers and OEs into it which would include third-part logistics companies and banks as well.

The AutoDX platform was developed in alliance with the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Components Manufacturers Association (ACMA). Built on IBM Sterling B2B Collaboration Network technology, AutoDX aims to eliminate inefficiencies by standardising, automating and accelerating the exchange of transactional data through the cloud.

“This is the first industrywide digital collaboration initiative for India’s automotive sector and has the potential to transform the entire industry," said Vijay Sethi, chairman, SIAM IT Committee, and CIO, Hero MotoCorp. “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, ACMA Technology Committee.

Adopting AutoDX, says Neelakantan will help suppliers and OEs alike handle large transactions volumes, lower manual errors as well as overall IT set up costs. It is also useful for SMEs that want to streamline IT-related costs, he added. In particular, the just-in-time process that is widespread in the auto sector means suppliers stand to benefit by using AutoDX, reiterates Neelakantan.

So far, some auto OEMs and suppliers have already integrated AutoDX into their processes, including Tata Motors, Bajaj Auto, Hero MotoCorp, SSS Springs and Sundram Fasteners.

Incidentally, IBM has developed the connected vehicle cloud for mainland Europe and five years ago had started Battery 500, a project aimed at developing a new type of lithium-air battery technology to improve energy density tenfold, dramatically increasing the amount of energy these batteries can generate and store. In 2012, Central Glass and Asahi Kasei, each with its own history of electric vehicle materials innovation became part of Battery 500.

Photograph: Neelakantan V, country leader, manufacturing, IBM India.