By building agility into the supply chain and reducing inventory, logistics providers enable automotive enterprises to adapt more quickly and efficiently to new and emerging supply chain challenges.
Not since Henry Ford improved mass-production with the first conveyor belt-based assembly line in 1913 have automotive supply chains experienced such a period of rapid change.
China’s maturing car market is leading to rapid growth in demand across Asia, increasing supply volumes and creating new distribution channels for some of the world’s largest automotive companies.
Closer to home, increasing consumer expectations and demand for more personalised, technologically advanced vehicles are influencing the kinds of suppliers that manufacturers are working with.
Additionally, automotive companies need to adapt to shorter product life cycles, in response to new and emerging technology.
Each of these factors presents new supply challenges. To minimise risk and drive sustainable growth, automotive companies require agility and visibility across their supply chain operations that many businesses currently lack.
Can you adapt as readily as you would wish?
To assess existing supply chain agility in the context of these challenges, automotive enterprises might consider the following five questions:
Have you got a trusted and experienced partner in Asia Pacific?
Analysts predict that most growth in the industry will come from Asia Pacific. Successful companies benefit from trusted and experienced partners, who understand the challenges of operating in China.
Can you maximise parts availability, at the point of customer demand?
The inability to maximise parts availability to meet demand directly limits a company’s ability to satisfy its customers, damaging its service levels—and its reputation.
Can you keep inventory levels down, while preserving service levels?
More efficient stock management directly reduces inventory costs without negatively impacting service levels.
Are you prepared for the impact that electric vehicles will have on the supply chain?
Failure to prepare the supply chain for the electrification of vehicles and management of batteries will put automotive companies at a disadvantage compared to their competitors who have planned for the uptake—and the impacts.
Can your supply chain flex through a product lifecycle?
Enterprises that cannot flex their supply chains in line with a product life cycle will experience issues, with repercussions impacting their bottom line.
The inability to answer one or more of these questions highlights a gap or weakness in the supply chain that could be limiting agility and, further into the future, the ability to meet market demand.
Is your supply chain capable of adapting to change as readily as you wish? A trusted provider with experience of adapting and managing supply chains in the ever-changing automotive industry could be the solution.Open modal