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SOURCE BorgWarner Inc.
BorgWarner's Award-Winning Software Constantly Monitors Its Supply Chain to Significantly Improve Delivery, Reduce Risk and Simplify Processes
AUBURN HILLS, Mich., Feb. 18, 2014 /PRNewswire/ -- BorgWarner's Supplier Performance Monitor (SPM) system uses artificial intelligence and sophisticated mathematical theories to analyze current supplier performance and forecast future trends. The easy-to-install software can be transferred to new locations and improves supply chain response times significantly. 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.
BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for powertrains around the world. Operating manufacturing and technical facilities in 56 locations in 19 countries, the company delivers innovative powertrain solutions to improve fuel economy, reduce emissions and enhance performance. For more information, please visit borgwarner.com.
Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "initiative," "intends," "outlook," "plans," "potential," "project," "pursue," "seek," "should," "target," "when," "would," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. Such risks and uncertainties include: fluctuations in domestic or foreign vehicle production, the continued use by original equipment manufacturers of outside suppliers, fluctuations in demand for vehicles containing our products, changes in general economic conditions, as well as other risks noted reports that we file with the Securities and Exchange Commission, including the Risk Factors identified in our most recently filed Annual Report on Form 10-K. We do not undertake any obligation to update or announce publicly any updates to or revision to any of the forward-looking statements.
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