How RFID Enables Better Supply Chain Visibility in the Automotive Industry

As Covid-19 swept the globe in early 2020, factories were shuttered and freight flows disrupted, affecting globally linked automotive supply chains.

A Rising Need for Real-time Visibility

But while shutdowns brought the industry to a standstill, ramping production back up proved even more challenging. The industry has faced semiconductor, material, and labor shortages, along with scheduling chaos in global shipping. A lack of chips has forced manufacturers to close plants, while poor inventory visibility has made forecasting unreliable. Sales have been lost while costs have soared, damaging auto makers’ bottom lines and brand images.

Supply chain visibility has become increasingly key in helping manufacturers identify nonavailability of parts and make decisions about alternative supply, expedited shipments and changes to production schedules. For example, manufacturers have prioritized vehicles and configurations based on what parts they know are available.

With ongoing uncertainty, the industry will face this ‘new never normal’ for the foreseeable future.

Manufacturers will need more visibility in real time, including material stock and inventory tracking at suppliers and assembly plants to minimize disruption, reduce waste and emissions.

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