The automotive industry has come under some intense scrutiny over the past many years, but one thing that may make it better as a whole is improvements to operations and supply chain management. Kami Blake, a solutions engineer, wrote on Chemical Watch that manufacturers in this industry must address the rising demand for performance, handling and efficiency, as well as meet environmental expectations, use data collection to improve monitoring and integrate new technology to help make the supply chain better.
"A framework to identify, analyze and mitigate all forms of supply chain risk must be constructed to establish and maintain a robust and resilient chain, upstream," Blake wrote. "This concept is far from new, but can constitute the most difficult supply chain challenge. Prior to globalization, unpredictable, unique and adverse events had regional impact. Supplier diversity meant having more than one vendor for the same raw material or component part."
Looking at what happens when a disaster strikes or if other conditions affect shipments will be essential to help these companies plan how they work. Blake said the globalization must be managed, as there are now risks faced by companies for events that happen across the entire world, which necessitates risk analytics, collecting data and measuring it to see what moves will need to be made.
According to PricewaterhouseCoopers, automotive companies usually manage planning, manufacturing and delivery regionally, outsourcing less than 10 percent of planning, enablement and sourcing activities. About 15 percent of the manufacturing activities are outsourced. It seems this industry is getting better at being efficient, as 97.3 percent have nearly best in class delivery performance, PwC reported, and 87 percent said they value maximum delivery performance as a core function. Leaders of the best companies focus on inventory management and production efficiency.