What is Automotive Industry Supply Chain Management?
Full supply chain integration is far simpler than managing the materials and resources and addressing logistical issues. It gives clear visibility into different production stages of the supply chain, data exchange, and analytics, in real-time.
In today’s world, most original equipment manufacturers (OEMs) have realized the value-added in integrating their automotive industry supply chain management. From the sourcing of the raw materials to the assignment of the planned production programs, transportation, warehousing, delivery, and customer management. It gives full control of the overall supply situation and gains valuable insight into the functionality and efficiency of their value chain.
While most companies are looking forward to automated solutions, streamlining the sales, planning, production, reporting, and analysis continue to break functional silos. Deploying of intelligent planning solutions also encourages collaboration across various platforms.
Let’s have a look at the top 3 benefits of an integrated supply chain process for OEMs in a complex landscape.
What are the Benefits of Supply Chain Management in Automotive OEMs?
Companies realizing the importance of integrating the intelligent supply chain solutions in fostering lean manufacturing can expect sustainable growth in their business.
Here’s how OEM’s can be benefited from Automated manufacturing solutions -
1. End to End Collaboration of Dynamic Supply Networks
As discussed earlier in the blog, most OEMs adopting the supply stream consist of production facilities across the globe. It often creates an increasingly difficult network of production platforms that is hard to manage and handle.
Hence, having clear visibility into the operations is critical in these networks. The companies also face difficulties in ensuring that the right products are being produced at the right time and within the right facility.
With a fully integrated supply chain, the automotive OEM’s can plan and manage to make required modifications for production programs. They can have full visibility of the components before or after the production stage in real-time. It assures secure on-time delivery, efficiency, and cost-effectiveness.
2. Transparency of materials supply, flow, and inventories
Supply chain comes up with many intelligent planning solutions and strategies like
- BOM Management
- Plan for Every Part (PFEP)
- Every Part Every Interval (EREI) and
- Container Management Strategies.
It also enables planners & managers to view, track, and modify the parts movements, inventories levels, and container pull strategies.
OEMs can create more accurate predictions based on the historical data of sharing the information between the sales and planning stages.
3. Agile Configuration of Production Networks
In today’s automotive supply stream, the more important thing is to have the ability to adapt to changing parameters of production. The fluctuations in inventory or material levels, and bottlenecks, or disruptions, everything should be adopted effectively for enhanced operations.
With an integrated supply chain, it’s easy to understand how the sharing of valid, up-to-date, and detailed information is important. Furthermore, the accuracy of data is at the core of creating an agile and responsive production network.
Incorporating the smart supply chain into the Automotive Industry is the simplest yet most effective way to achieve greater results. Imagine what if equipment can detect and monitor issues with the system and adjust accordingly extending the system's overall lifespan.
This would eliminate the need for manufacturers to collect spare manufacturing parts and materials in their warehouses. It reduces waste and increases the availability of more factory space.
With increasing needs and innovation, the vehicle parts manufacturers have started streamlining their operations using Microsoft Dynamics 365. The Dynamics 365 for Automotive enables them to track available resources and address the major gaps during the crisis.
Microsoft Dynamics ERP for the Automotive industry can also help companies to track compliance with handwashing rules. If you’re looking forward to implementing ERP or CRM for Automotive Industry, we can help. Connect with our team of experts and get detailed knowledge of our services and processes to take it further.