The automotive landscape is changing. Disruptions in (automotive) supply chains, shortages of material and manpower, and inflation are adding stress to an industry that is already in the midst of an evolution in demand and preference. The pandemic has been a bumpy ride, driving the rules of the automotive industry to be rewritten and restructured to safeguard the end-to-end supply chain.
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10 million
potential units lost due to the chip crisis
400% rise
in container shipping price index, year on year
18.7 million
EV units expected to be lost due to battery shortage between 2022-29
To help navigate the route ahead, we have created the whitepaper, ‘Building the supply chain forward’. The report offers an in-depth review of the problems the industry faces and how four main trends have emerged to help automotive players accept and thrive in the new ‘never normal’ whilst streamlining their logistics and supply chain management.
Supplier and freight real-time visibility
OEMs today need visibility in every aspect of their business, but especially along their end-to-end supply chain. This requires consolidated data across departments and partners to prioritise supply and production, as well as an integrated, near real-time view of freight and end-to-end supply chains. Only then can decisions be made faster, and more importantly, reliably.
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Sales and operations planning
With a view to provide value over volume, companies are moving towards investing more time into S&OP. Combined with visibility innovation tools across the entire business function, automotive companies need to link supply and inventories to demand dynamics and develop contingency plans to shape demand and harmonise supply.
Exploring multiple transport modes
By partnering with an LLP, OEMs can now tweak their end-to-end supply chain to move away from pure ocean logistics to leveraging multimodal supply chain solutions that combine ocean logistics with air, barge, rail and more. This helps companies avoid congested points in their automotive supply chain journey and get to markets faster.
Leverage integration with a lead logistics player
Better integration across OEMs can create value that’s well over ten figures every year. An LLP can play a major role in achieving this untapped value by helping OEMs to react quicker to market and logistics changes, predict and organise inventories and even integrate new mediums of transport to keep supply chains moving.
Disruptions are very much a part of tomorrow's automotive supply chain’s journey. However, logistics and supply chain management combined with data and tracking, integrated decision-making, technology innovation as well as strong logistics partnerships, manufacturers can look forward to a ‘more in control’ in the future.
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