Companies need to know how they operate. This sounds trivial, but global activities, diversified product lines and complex organizational structures can make it difficult to find a uniform basis for assessment.
Often, IT departments are not harmonized, with participants literally speaking different languages, and it is unclear whether everyone is referring to the same numbers. Strategic decisions require reliable standards. As an enterprise is being analyzed, ECLASS helps identify strategic strengths and weaknesses in comparison to the competition.
- Makes internal processes comparable with the market, and helps with the preparation of billing rates
- Enables comparable cost analyses to be produced across all product groups
- Provides uniform structures for reporting purposes, and helps with “make-or-buy” decisions
AVL (Institute for Internal Combustion Engines) is one of the global leaders for powertrain systems. The Austrian company opted to use the standard due to the already high number of ECLASS users in the sector. In the diverse IT landscape, there was a lack of common structures and rules; moreover, standardizing different language versions was an important task. AVL chose 550 suitable commodity classes, defined 50 internal commodity classes, and then implemented the standard. As a result, data quality is today largely automatically ensured in areas such as duplicate checking and master-data processing and migration. In addition, the company’s terminology is now consistent.
Austria-based AT&S is the leading European printed circuit-board producer. The company was faced with the problem of high capital formation and slow turnover of the components it produced. Identification of these components was not always reliable due to different designations. The implementation of ECLASS paid for itself after just seven months, impressively resulting in 44% fewer spare parts, 47% fewer suppliers, and a 20% reduction in capital commitments. The new classification structure is integrated with the SAP system, and is also available in Chinese – an important decision criterion for the global organization.