Global Automotive Industry Benefits with Digitization
According to a report from McKinsey, “The road to 2020 and beyond,” the global automotive industry is “in better shape than it was five years ago, especially in the US, where profits and sales have recovered following the recent economic crisis.
The Automotive Industry
At the World Automotive Conference in October 2019, fifty presenters focused on the future of the industry and discussed how to manage global economic challenges and changing industry demands.
Many of the presenters focused on digitization, discussing everything from the IoT to B2B collaboration to agility in the supply chain.
Elemica understands the automotive industry, serving automotive OEMs, dealers, suppliers (all tiers), and logistics providers with solutions to address global competition, trade wars, long lead times, visibility, quality and more.
With the Elemica Digital Supply Network connecting all trading partners within the automotive supply chain, businesses gain visibility and an agile environment that reduces risk, lowers costs, and optimizes inventory levels.
The global automotive industry is “in better shape than it was five years ago, especially in the US, where profits and sales have recovered following the recent economic crisis, and in China, where growth remains strong,” per a recent report from McKinsey, “The road to 2020 and beyond.”
That is good news for the industry, but to keep strong against competitors, automotive industry participants need to focus on:
- Increasing visibility from end-to-end within the supply chain to understand what is happening and to uncover any roadblocks that could lead to shipment delays. Real-time tracking within Elemica SEE allows you to follow your shipments from supplier to end customer to ensure parts arrive on time at the right place.
- Lowering inventory costs by deploying Vendor Managed Inventory (VMI), which helps to streamline replenishment orders, improve inventory turns and fill rates, and reduce unplanned events.
- Digitizing their supply chains by automating business processes and using a digital supply network to connect all business partners. The more partners that connect to the network, the more value participants receive. All transactions and communications are captured across the network, generating information that can be used to monitor key performance indicators and help make more informed decisions.
- Improving supply chain quality by troubleshooting supplier performance issues by reviewing supplier quality management processes and test results and all documentation for compliance certifications and analysis. Elemica Quality is an enterprise-wide quality and compliance solution that minimizes cost-related product quality issues.
- Shortening long lead times from global operations by improving order management with Elemica QuickLink Email Buy which uses electronic purchase orders which are automatically converted to email and routed to suppliers bypassing the need for admin to review and re-key in orders.
- Eliminating risk from delayed or lost shipments from supply chain disruptions. Elemica Risk provides insights and visibility into supplier delivery performance allowing users to detect early issues affecting customer fulfillment and raw material supply. You can uncover vulnerabilities within your supply chain and apply predictive analytics to determine what will happen if a disruption occurs.
With Elemica’s expertise and experience in the Automotive industry, businesses gain value from an agile supply chain that delivers increased performance and efficiencies for higher bottom-line profits.
For further information on how Elemica experts can help your enterprise contact us.
Related Resources
The Elemica QUALITY | Supplier Quality Management
Align supply chain quality objectives with suppliers, customers, and manufacturing to achieve visibility, higher quality, improved traceability, and compliance. Download Now!
The Elemica SEE | Visibility Solution Platform
Unleash the power of a digital supply chain with visibility and exception management for optimizing and transforming your order-to-cash and procure-to-pay supply chain processes. Download Now!
Elemica Case Study | Goodyear Tire & Rubber Company
In this case study, we detail how Goodyear Tire & Rubber Company has experienced considerable cost savings by reducing corrective action requests and increasing supplier accountability and ensured material validations, tracked ongoing quality audits and maintained regulatory compliance. Download Now!
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