Optimizing ERP LN Kernel & Redesigning EDI Supply Chains for the Automotive Industry

Transforming a global supply chain isn’t only about technology — it’s about rethinking processes, building resilience, and ensuring long-term scalability.


When a global automotive supplier with more than 1,500 employees set out to optimize its ERP LN kernel and redesign its EDI landscape, the challenge was clear: fragmented processes, manual workarounds, and outdated scheduling logic were limiting operational performance.

By introducing pull-based planning, scalable EDI integration, and a unified forecasting framework, the company has taken a decisive step toward supply chain excellence.

Project Highlights

  • Company: Global automotive supplier (anonymous)
  • Industry: Automotive supply & manufacturing
  • Employees: 1,500+ worldwide
  • ERP: Infor LN with ION middleware & EDI mapping layer

Key Challenges:

  • Limited use of EDI in procurement and fulfillment
  • High manual effort in shipping, invoicing, and order processing
  • Forecast and planning inconsistencies across sites and suppliers
  • No integrated pull planning logic in ERP LN kernel

From Push to Pull: Rethinking the Supply Chain Model

The company’s ERP LN implementation was originally designed around a push-based scheduling model to accelerate the go-live. But over time, this rigid setup clashed with business realities.

To align the ERP backbone with the company’s long-term supply chain strategy, the project team defined a new direction:

  • Introduce pull-based planning logic via value streams and decoupling points
  • Replace single purchase orders with purchase schedules and release management
  • Build scalable EDI integration for internal and external suppliers
  • Enable ASN-based (Advanced Shipping Notice) confirmations for automation in delivery and invoicing
  • Establish a unified forecast and planning framework across the supply chain

Solution Design & Implementation

The solution was built on Infor LN with ION middleware and extended through advanced EDI capabilities. Key elements included:

  • Modules Introduced: Purchase schedules (push & pull), ASN, Slim4 forecast integration, consignment-based fulfillment with multi-party invoicing
  • Custom Enhancements: Pull logic embedded into ERP kernel, item-level forecast windows, surcharge logic for packaging & invoicing
  • Integrations: Slim4 (long-term forecasting), Automotive Exchange Middleware (BOD ↔ EDIFACT mapping), Siemens portal (customer communication, later EDI)

Technical Breakthroughs:

  • Designed mapping & processes for pull-based EDI
  • Enabled ASN D97A messaging after shipment execution
  • Standardized processes across internal and external suppliers

Project Execution

  • Timeline: Q3 2023 – Q1 2024
  • Team: Project management, ERP logistics & supply chain consultants, solution architect, IT business partners, and logistics stakeholders
  • Key Milestones:
    • Defined three core processes (Push Schedule, Pull Schedule, Single Order)
    • Designed pull-based planning per value stream
    • First external supplier onboarded with EDI integration
    • Packaging surcharge process mapped and approved

Challenges & Actions:

  • Supplier-specific requirements ➝ unified model introduced
  • Limited forecast integration ➝ Slim4 item-level upload configured
  • ERP kernel lacking pull logic ➝ initiated change request & design phase

Results & Business Value

Operational Improvements:

  • Reduction of manual effort in procurement and shipping
  • Automated forecast upload & structured planning windows
  • More consistent supplier collaboration

Strategic Benefits:

  • Faster responsiveness to market demand
  • Transparent, unified planning across the value chain
  • Improved data quality for decision-making

Stakeholder Voices:

  • “Confirmed orders should drive fulfillment — not assumptions.”
  • “Separating push and pull logic has transformed how we plan supply.”
  • “We finally have a structure for aligning demand and system behavior.”

Lessons Learned & Best Practices

This project highlights important takeaways for manufacturers navigating complex ERP and supply chain transformations:

  • Value stream–based decoupling is key for hybrid push/pull supply chains
  • ERP kernel flexibility must be embedded from the start
  • Forecast and demand should be decoupled at both process and system level

Recommendations for Future Projects:

  • Evaluate forecast behavior early, at item level
  • Tie pull logic directly to decoupling points within value streams
  • Integrate EDI into the core design, not as an afterthought

Conclusion


By aligning technology, process, and strategy, this automotive supplier achieved more than just an ERP optimization — it established a foundation for scalable, demand-driven supply chain excellence.

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