To accommodate the dynamic global economy where suppliers must work in close partnership with their customers throughout the supply chain, BorgWarner’s Supplier Performance Monitor (SPM) system optimizes its supplier network as well as its own performance. BorgWarner’s software tool, which is based on the stochastic Hidden Markov Model, 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. According to BorgWarner, the SPM system improves collaboration between all supply chain functions by involving all suppliers, revealing potential risks early. In addition, the easy-to-install software can be transferred to new locations, claims the company.