Volvo Streamlines Purchasing from Key Supplier, Ningbo Liqiang Machinery Co.

Volvo is one of the biggest and fastest growing car companies in the world. With more than 571,000 cars sold worldwide, Volvo posted $37.4 billion of revenue in 2017 and grew by more than 13 percent. The Swedish carmaker continues to grow rapidly, with popular models like the XC60 II and XC40 and record sales in China, its biggest market.

Ningbo Liqiang Machinery Co., Ltd. is one of the most important suppliers fueling Volvo’s impressive growth in China and worldwide.

Ningbo is an industrial enterprise integrating R&D, production and sales. Since its establishment, the company has accumulated a wealth of professional manufacturing experience and deep technical know-how. From the initial production of single auto parts and components, Ningbo has developed to produce automotive engine lubrication systems, cooling systems and other components. The company maintains close cooperative relations with many large Chinese and international automakers, such as Brilliance Auto, Chery Automobile, Geely Auto, Great Wall Motor, Lotus Auto, Youth Auto and Mitsubishi Engine.

The Challenge: Efficiently Procuring and Supplying Car Parts to Keep Pace with Demand

To meet skyrocketing demand and drive profits, Volvo worked with suppliers to streamline its procurement process through an EDI system.

Volvo set out to develop a more efficient, secure and reliable service delivery solution for its docking with key supplier Ningbo Liqiang. Volvo and Ningbo needed to implement EDI into their business processes. That meant setting up an integration that could filter purchasing information and map it to meet internationally accepted EDI requirements — an EDI software solution.

Ningbo sought a solution to connect with Volvo’s EDI and automate business processes. Specifically, they needed an EDI software solution that would:

  • Fully integrate Ningbo’s ERP with Volvo’s EDI to standardize purchases and other supplier-customer messages
  • Provide a docking process to translate EDI messages
  • Securely transmit all files and EDI messages using OFTP to ensure reliability
  • Directly import EDI files into databases through secondary development

The EDI message standard required by Volvo is EDIFACT. The types of services involved in both parties include:

  • DELFOR — delivery plan, Ningbo Liqiang receiving
  • INVOIC — invoice, Ningbo Liqiang Receive
  • DESADV — delivery notice, Ningbo Liqiang sent
  • Lable — label, Ningbo Liqiang generated print

To handle this EDI integration, Ningbo and Volvo needed a fast, secure EDI software solution and chose RSSBus Connect.

The Solution: Secure File Transfer with RSSBus Connect OFP, Script, EDIFACT and SQL Server Ports

The whole implementation process of the EDI system docking can be summarized as follows:

First, by configuring the two sides of the OFP information, Volvo receives the DELFOR and INVOIC EDI files and directly imports the data into their database through the secondary development conversion format. When sending the DESADV, the data is read twice from the database. The data is converted into the EDI format and sent to Volvo via OFP.

At the same time, the DESADV and DELFOR information is combined to extract relevant data from the database, and the label in .jpg format is generated and printed on the box.

With the use of RSSBus Connect's OFP, Script, EDIFACT and SQL Server ports, the Volley-compliant EDI docking method is satisfied and the operation process is set automatically, eliminating errors caused by manual data entry. In addition, the secure file transfer protocol (SFTP) can be configured with the other party's certificate, creating a secure closed loop. The transmission process is encrypted, signed, safe and reliable.

The Results: More Efficient Supply to Meet Massive Demand

Ningbo's seamless EDI integration with Volvo saves both parties countless hours, cuts costs and eliminates inaccuracies.

Ningbo's system now fully supports SSL, encryption, signature and compression through Odette's officially certified OFP, successfully docking with the Volvo EDI system. Ningbo’s EDI through RSSBus Connect also provides secondary development, translation of EDI messages of multiple service types and integration with ERP systems.

Ningbo has been able to fully satisfy Volvo’s requirements while enjoying and passing on savings in the process. And Volvo continues to enjoy rapid growth in China, with a more efficient system and record profits.

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Our flagship product, RSSBus Connect, is used by more than 100,000 customers worldwide and is the only Drummond Certified AS2/AS4 solution that is completely free for use with a single trading partner.

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