(Newswire.net — May 10, 2018) — Supply chains in the automotive industry are by far some of the most complex in the world. Think about your car, while it may be the product of one manufacturer (Ford, Volkswagen, Ferrari if you’re lucky) it’s actually made up of thousands of individual parts sourced from many different suppliers. The radio will be sourced from somewhere different from where the fuel injector was, for example. With so many steps involved and the automotive industry constantly changing, these supply chains are having to transform to keep up.
Suppliers are Innovating
New computer systems, manufacturing processes and vehicle designs have seen the automotive industry change massively in the past decade or two. This has had an impact on original equipment manufacturers and auto suppliers, many of whom have started to focus more on innovation rather than production to keep up with the transformations.
Digitalisation is at the heart of this, supporting new business strategies for such suppliers. For a lot it is a battle to come up with new and innovative products which car manufacturers will want and eventually need. This is being done more and more through mergers and acquisitions, so that suppliers and original equipment manufacturers can grow their knowledge to produce the highest quality products.
The Rise and Impact of Electric Vehicles
One of the biggest changes in the auto industry has been the rise of electric cars. This has changed the landscape for future car ownership, but it is also impacting upon supply chains in the industry as well. There is now a greater emphasis and opportunity for producing the powerful batteries which energise such vehicles.
This means car manufacturers are looking at different suppliers, moving away from their old ones, requiring innovation or some companies will see their business fall. Plus, transporting such parts can present new challenges and opportunities, as shipping hundreds and thousands of heavy batteries overseas is no easy feat.
Using Analytics to Deal with Recalls
Manufacturers are becoming more demanding and requiring same and next day delivery services from suppliers, such as those offered by TNT. A big reason for this is to do with the large number of recalls the auto industry has experienced in recent years.
Car manufacturers need to deal with such issues instantly to avoid getting a bad reputation. Another way to do so is through the use of analytics tools to get a good data overview and see where problems are occurring and how they can be fixed.
The auto industry is changing and so are the supply chains that power them, hopefully to improve both driver and manufacturer satisfaction.