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Automotive
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Automobile industry has undergone significant structural changes in the last decade or so in lieu of globalisation. Implementation of lean prodcution and the development of modularisation have changed the relationships between original equipment manufacturers (OEMs), first tier suppliers, sub-tier suppliers, and infrastructure suppliers. Stiff competition among manufacturers will result in more mergers or acquisitions globally leading to supply chain getting more complicated and cumbersome to handle. High cost due to huge R&D investements, rising steel prices, innovation in the design, rising environmental concerns and yet keeping the base price same has demanded that automobile manufacturing companies streamline their processes by outsourcing some of the activities to low cost countries. All this requires an efficient supply chain management and logistics coordination at the highest level in order to achieve customer satisfaction at the lowest price possible.
Other than improving quality, meeting cost reduction targets, and developing time to market, the challenges which the automobile manufacturing firms face are:
- Integration of the sub tier, first tier suppliers and 3PLs upstream and dealers, wholesalers and retailers downstream, weaving them in a single end to end supply chain.
- Reducing channel inventory and stock out events in order to meet the expected level customer service.
- Pull based processes planning linking to demand at each level.
- Reductions of replenishment lead time.
- Network optimization taking into account various facilities, plants, DCs etc.
- Collaborative product development through the internet and web based procurement
The Automotive sector focuses on JIT and continuous flow of product and information under Lean principles so that there is no interruption in the flow that causes breakdown in the production downstream, with automotive manufacturing firms usually working in an assembly line. Aqua MCG associates have played a major role in restructuring the supply chain of the leading manufacturing firms keeping the above mentioned considerations in mind, with some of the solutions listed below:
- Supplier partnership enablement leading to JIT supplies, improved field performance, VMI etc.
- Vendor base rationalisation leading to better pricing on volumes, vendor improvement programme for continuous improvement etc.
- Total cost management initiatives
- Logistics initiative included transporter base rationalization, Kanban pull from satellite warehouses, enhancement of truck-turn around, load, space and route optimization etc.
- Outsourcing enablement to 3PLs and 4PLs
- E-sourcing including global benchmarking, identification of cost competitive sources, introducing best sourcing practices etc.
Clients seek our help when they want to introduce common global processes, real time logistics management capabilities, predictable, reliable and rapid transport, integrated supply chain network etc. At Aqua MCG, we have the best in class capabilities to serve needs fulfilling demand for an efficient and lean supply chain in the automobile industry. |
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| Business & Supply Chain Strategy |
| Aqua MCG ensures the right alignment and implementation of supply chain practices with business strategies. Learn more about the capability of Aqua MCG. | |
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