Driving Supply Chain Convergence
Empowering Continued Leadership in Tier 1 Automotive Industries
- “ For 100 years, the automotive industry has been refining its processes around the Internal Combustion Engine. The historic pace of change for OEMs and suppliers will seem like a Sunday stroll compared to the simultaneous surge of disruptions it is facing today.
In the new world, vehicles are differentiated not by stylish sheet metal or powerful engines but by advanced driver assistance systems, infotainment, telematics, LiDAR sensors, image-recognition systems, 5G communications and electric powertrains. These CASE initiatives (Connected, Autonomous, Shared Mobility, Electric) depend on ingesting increasing amounts of data that needs to be processed at ever faster speeds. The impact is profound. The good news is that the overall size of the automotive market is increasing from 3.6T to 7.2T, a tsunami of change representing an opportunity as well as a threat. ”
Salim Shaikh, VP Automotive Industry Strategy - Blue Yonder
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Digital Supply Chain Trends in Automotive Industry
From collaboration to planning to control towers and logistics, automotive companies and suppliers are digitalizing processes and systems at a historic pace to improve competitiveness, profitability, and customer-centricity.
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Challenges in the Automotive Industry
The automotive industry is experiencing relentless growth in complexity from both the demand and the supply side.
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Blue Yonder is Proud to Serve
Priorities for the Automotive Industry
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Illuminate your supply chain network
To measure the impact of a supply disruption or demand mix change, visualizing the entire flow of goods across the network is crucial. This enables the ability to identify and implement proactive risk mitigation plans in real-time.
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Demand and supply variability
Improved scenario planning and simulation capabilities can enhance supply chain resiliency by developing various scenarios and robust contingency plans for navigating tradeoffs on finances.
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Strategic network design
To proactively mitigate risks, organizations revisit their supply chain network design, reconfiguring global/regional flows, sourcing locally, and conducting trade-offs based on needs, costs, services, and risk analysis
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Working capital reduction
Resiliency demands agility and cost reduction to preserve cash flow amid 40-year-high inflation. 55% of CEOs foresee significant inflation, leading 75% to boost supply chain initiatives annually.
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Taking control of outsourced transportation functions
To improve control, reduce expenses, and enhance resiliency, organizations are increasingly internalizing certain transportation functions.
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Line side replenishment
The aim of using Warehouse Management to automate line-side replenishment is to optimize inventory management, prevent production downtimes, and alleviate bottlenecks for your entire supply chain network.
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Blue Yonder’s Luminate® Platform enables the Auto Tier 1 industry to scale.
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Business Case:
Capacity and forecast collaboration must be extended beyond Tier 1 manufacturers out to Tier 2 and Tier 3 suppliers of semiconductor wafers. In the event of a missed part delivery, the control tower can weigh such options as expediting a replacement from the Tier 1 supplier or shipping from an alternate source. It can evaluate the speed of different carriers and route to minimize any negative impact caused by the disruption, thereby enabling the most cost-efficient outcome, improving customer service levels and increasing revenue and margin. The result is a more agile and resilient supply chain.
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Driving automotive success
at AdientWith 202 manufacturing facilities across 32 countries, Adient is a world class seating manufacturer, that provides more than 19 million seats per year. That equates to one out of every three seats in automotive vehicles worldwide, that’s a large volume and we have a large supply chain that really works well moving things around the world, even in the face of challenges. However we did identify that we needed some additional assistance looking at our collaboration efforts and our technology. And that’s where Blue Yonder comes in.” Jill Hays Inventory Optimization Manager, Adient
Blue Yonder is Proud to Support the Automotive Industry
Driving automotive success at Adient
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“We have a large supply chain that really works well moving things around the world, even in the face of challenges. However, we did identify that we needed some additional assistance looking at our collaboration efforts and our technology. And that’s where Blue Yonder comes in.”
- Jill Hays Inventory Optimization Manager, Adient
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Tap into our Automotive Industry Expertise to build resiliency into your automotive supply chain.
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