IBM Cloud-Based AutoDX exchange for Indian automotive industry

A business-to-business (B2B) cloud-based network from IBM will help transform the Indian automotive industry. The AutoDX exchange has been developed in partnership with the Society of Indian Automobile Manufacturers (SIAM) and Automotive Components Manufacturers Association (ACMA), and will benefit from quicker movement of data and reduction of transaction costs by up to 80% courtesy of IBM.

For the large part, Indian auto manufacturers and parts suppliers have relied on manual processes to exchange transactional data each day, making it a hot seat for human error, transaction delays and increased processing costs. The new exchange built on IBM Sterling B2B Collaboration Network tech eliminated these inefficiencies by shifting to data exchange of through the cloud.

Auto-DX“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, Chairman, SIAM IT Committee, CIO, Hero MotoCorp Ltd. “AutoDX – using IBM’s cloud computing platform – will greatly improve efficiencies and reduce costs across the entire ecosystem as exchange of information on various critical logistics and financial transactions can be now 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.”

ACMA and SIAM expect a majority of its members to adopt the platform by 2014 end making IBM the prevailing provider for Electronic Data Interchange in India for the auto industry. 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 be extended 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 has worked closely with ACMA and SIAM to develop common standards specific for the Indian auto industry. As a result, auto manufacturers and suppliers can quickly and easily adopt these standards. The cloud opens additional connections for the Indian auto industry to global organizations that use IBM Sterling B2B Collaboration Network, a software-as-a-service (SaaS) offering.

“Under fierce global competition, companies are increasingly deploying cloud technology to keep pace and dynamically address changes in market demands,” said Venkataraman Neelakantan, Industry Leader – Manufacturing & Natural Resources, IBM India/South Asia. “By combining the emerging power of cloud with our time-tested B2B collaboration network, we can help ACMA and SIAM transform the entire India automotive industry on a massive scale to accelerate their pace of innovation.”