BorgWarner Launches Software Tool To Optimize Supplier Performance

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BorgWarner Launches Software Tool To Optimize Supplier Performance

BorgWarner's award-winning software constantly monitors its supply chain to significantly improve delivery, reduce risk and simplify processes, company says.

Counterman Staff
By Counterman Staff
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AUBURN HILLS, Mich. — BorgWarner’s Supplier Performance Monitor (SPM) system uses artificial intelligence and sophisticated mathematical theories to analyze current supplier performance and forecast future trends.

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The easy-to-install software can be transferred to new locations and improves supply chain response times significantly, according to the company. 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.

"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, the company said.

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Customer Service: How It’s Done

Customer service should be your number one priority, and it all starts with the greeting.

Eric Garbe
By Eric Garbe
Eric Garbe is a graduate of Columbus State Community College with a degree in Automotive Maintenance Technology. He has extensive independent and dealership field experience as a technician and shop owner and is an ASE Certified Master Technician and former Adjunct Automotive Professor. He has been professionally writing automotive technical articles and documents for many years and in his free time enjoys restoring old cars and creating custom interiors and upholstery.
Published:

This is always an important topic to discuss, because I consider excellent customer service one of the most important tools you can have to earn trust, respect and repeat business from the customers that come through your door. Whether that customer is do-it-yourselfer from across town or the professional repair shop across the street, your business depends on a solid relationship.It’s a subject that I am passionate about, and it’s one that many people are losing touch with. Whether you are communicating to someone in person, on the phone or using some type of social media, good customer service and bad can both exist. You can’t afford the latter, so this is the first in a series of topics which can and should be shared from the front of the shop to the back. No matter which role you hold, you represent the shop and yourself. Customer service should be your number one priority.First on the list is the greeting. From the second a customer walks in the door, they need to know you appreciate them coming in and how important they are to your business. First impressions are everything and here’s the correct way to do it each and every time: look them directly in the eye, smile and say hello!Of course, you can say “Good morning” or “Welcome to Joe’s Autocare,” but it should be a formal greeting and the most important thing is that you have smiled, looked them in the eye and recognized that they have walked through the door.You should always retain a formal greeting until you are on a first-name basis with a customer. Only once you have established that level of relationship is it OK to use the less formal greeting of “Hi,” followed by the person’s name.This greeting does more than just indicate respect and appreciation for someone walking through the door. Most likely there are customers both new and old who are in earshot of your conversation. For newer customers, this continues to build rapport and reinforce their positive view of your shop; they see that you demonstrate respect and treat everyone in the same manner. For repeat customers, even ones that have been coming for years, the greeting is important because the way you treat them is the reason they continue to come.And when a long-time customer comes in and you greet them with “Hi [First Name],” this indicates your appreciation for them and that you’re glad to see them as a person, more than just a customer. New customers that witness this will see that your repeat customers are comfortable enough to be on a first-name basis, another indication of the trust they have in you.

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