**Germany**: SAP and Catena-X have unveiled a data ecosystem to enhance vehicle recall efficiency and reduce costs, allowing German manufacturers to streamline operations and foster trust. With nearly 200 members, it promises significant impacts on the global automotive industry by facilitating precise data analysis.
In a significant breakthrough for the automotive industry, SAP and Catena-X have unveiled a collaborative data ecosystem aimed at streamlining vehicle recall processes, cutting costs, and enhancing efficiency. This initiative is particularly relevant for German car manufacturers, who collectively allocate between €1.4 billion to €1.8 billion annually to manage recalls.
Catena-X, launched in 2021 and developed as part of the Manufacturing-X programme, facilitates secure data exchange among participants across the automotive supply chain, allowing companies to retain their data sovereignty. As Hagen Heubach, global vice president and head of Discrete Industries at SAP and a member of the Catena-X e.V. Executive Board, explained, “Quality management is traditionally one of the areas where data exchange is associated with the greatest inhibitions.” He added that discussing potential defects is often avoided by both manufacturers and suppliers, highlighting the importance of this collaboration for industrial data exchange.
A significant case study demonstrating the effectiveness of this partnership involved an initial recall assessment that identified 1.4 million vehicles as potentially affected. However, following an analysis of field data from the vehicle’s performance and production data provided by component suppliers through Catena-X, the actual number of vehicles requiring recall was later determined to be only 14. This level of precise analysis underscores how the integration of both data sets can significantly reduce the scope of recalls.
The bilateral data exchange promoted by Catena-X is also instrumental in fostering stronger trust relationships between original equipment manufacturers (OEMs) and suppliers. The technical framework allows data sharing among partners within the ecosystem, limited to specific purposes and timeframes, while ensuring that ownership over the data remains with the entity that provided it. According to Heubach, field data, which are generated by vehicles under real-world conditions, can provide valuable insights into the performance of various components.
After initial funding from the German Federal Ministry for Economic Affairs and Climate Action, Catena-X has grown remarkably from its original 28 consortium partners to nearly 200 members, now expanding its reach internationally. Regional hubs have been established in North America, China, France, Sweden, and Spain to address the unique regulatory environments and requirements of the automotive industry across different markets. Heubach noted, “Every market has its peculiarities and different regulations and requirements for the automotive industry that we have to take into account.”
The official launch of the Catena-X data space occurred in October 2023, allowing for practical data exchange applications. SAP, showcasing its prominent role in this initiative, provides numerous Catena-X-certified business applications, subject to rigorous testing and certification to ensure compliance with set interoperability standards. Nadine Kanja, solution head at SAP for the Automotive Business Unit, explained that the certification process guarantees that SAP’s solutions align with the requirements outlined by Catena-X for efficient data exchange.
In August 2024, a new development consortium, known as Catena-X Next, is set to commence, focusing on advancing themes such as quality management, sustainability, and the Eclipse Dataspace Connector, a central element of the Catena-X architecture. With other manufacturers like Volkswagen and Ford also adopting Catena-X as their standard, the system is emerging as a leading model not only in Germany but on a global scale.
The proactive methodology established by Catena-X allows errors to be identified approximately four months earlier on average, significantly reducing the likelihood of unnecessary recalls. Heubach reiterated that this efficiency facilitates the accurate pinpointing of vehicle-specific issues, thereby generating substantial cost savings for manufacturers.
Current users of SAP, such as automaker BMW and supplier Schaeffler, can immediately integrate Catena-X functionalities with SAP Quality Management. Ongoing developments are also focused on utilising and expanding capabilities within SAP Business Data Cloud, aiming to incorporate artificial intelligence functionalities.
For organisations looking to engage with this burgeoning digital ecosystem, the opportunity to partner with Catena-X is open. SAP encourages interested parties to reach out through designated contact channels. Moreover, attendees at the Hannover Messe can visit the SAP booth for a panel discussion featuring several industry leaders, providing insights into the future of automotive data collaboration.
Source: Noah Wire Services
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