Skip to main content

Driving Supply
Chain Convergence

Enabling Leadership in Tier 1 Automotive Industries

  • The future is now

    Are you ready?

  • In the new world, vehicles will be 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.  

  • “ 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 beyond the current pandemic. C.A.S.E. initiatives – Connected, Autonomous, Shared Mobility and Electric – are turning cars into supercomputers on wheels. 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
    Connect with Salim


video test firmenisch.png


McKinsey’s ‘Automotive revolution – perspective towards 2030’ study estimated that by 2030:

  • 100%

    of passenger vehicles will be autonomous
  • 50%

    Decrease in stockouts.
  • 30%

    of all miles driven will be shared
  • 30%

    of automotive will be Electric Vehicles

Challenges in the Automotive Industry

  • In the new world, vehicles will be differentiated not by stylish sheet metal or powerful engines but by advanced driver assistance systems (ADAS), infotainment, telematics, LiDAR sensors, image-recognition systems, 5G communications and electric powertrains. CASE depends on ingesting increasing amounts of data that needs to be processed at ever faster speeds. For example, aftermarket OEMs can leverage data like vehicle usage, telematics, wear and tear, diagnostics and miles driven from connected vehicles to create a feedback loop which make proactive recommendations on parts and services.
These capabilities are enabled by semiconductors and electronics, which will effectively usher in a new ICE age of automotive (Internal “Chips” Engine). In this paradigm, the hard lines between industry sub-verticals such as automotive, industrial, hi-tech and consumer electronics will blur as the sectors gravitate toward each other in a phenomenon called "Industry Morphing." A clear conclusion is that the new automotive winners will operate as technology companies, integrating best practices from both the high-tech and consumer industries. Early evidence of the effect of this convergence can be seen from the recent chip shortage that has plagued OEM assembly lines.

Priorities for the Automotive Industry

  • sap-apo-icon3.png

    Illuminate your supply network

    Only when you can visualize the entire flow of goods across this network, all the way down to dealers, you can then measure the impact of a supply disruption or a demand mix change and see the impact of the disruption in real-time, and come up with proactive risk mitigation plans.



    Watch the video

  • Demand and supply variability

    In the mid-term supply chain resiliency can be enabled through better scenario planning and simulation capabilities. These include the ability to develop a range of scenarios and robust contingency plans to navigate and understand the tradeoffs on cash flow, P&L, and the balance sheet.


    Watch the video
  • sap-apo-icon2.png

    Strategic network design

    Organizations are increasingly coming up with proactive risk mitigation plans by revisiting their supply chain network design. This includes reconfiguring their global and regional supply chain flows, sourcing critical components from local suppliers, and conducting trade-offs according to needs, cost, service and risk scenario analysis.

    Watch the video

  • Working capital reduction

    Resiliency is about being agile and lean at the same time. By reducing costs, working capital reduction and cash flow preservation is key, especially since inflation is at a 40-year high. 55% of CEOs expect a significant rise in inflation over the next three years and hence 75% are increasing their supply chain initiatives year over year.


    Watch the video

Blue Yonder’s Luminate Platform Enables The Auto Tier 1 Industry to Scale

The three Cs of COVID-19, C.A.S.E. and Convergence along with the chip shortage have demonstrated that the pace of disruption and evolution is, if anything, accelerating. The increased complexity and velocity of the market means that existing techniques no longer scale. So, it is no surprise that auto manufacturers are looking to AI and ML for solutions. After all, the sector has been at the forefront of this technology for in-car features such as lane control and autonomous driving. Clearly, the introduction of predictive, prescriptive, and autonomous technology is also the future of end-to-end supply chains as ecosystem-level “predict-and-pivot” capabilities become the new competitive advantage.

The future supply chain will be designed to adapt from first principles. It is an intelligent self-learning system designed to deliver the optimum outcomes for businesses and customers, ready to predict and adapt to whatever the future may bring.


Real time supply chain visibility and multi-tier supplier collaboration

  • In the corporate world, agility is often described as the ability to be responsive to change. The digital world adds an important caveat. It is no longer enough to react quickly after an event. Damage limitation needs to be replaced by system-wide optimization.

    To usher in this capability, a digital control tower scans the ecosystem beyond the traditional walls of the business to provide AI-powered visibility and real-time reaction. For example, 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.

Integrated Demand Supply Scenario Planning

  • Global chips shortages, Nickel shortage, Neon shortage, Geo-political uncertainty, Ukraine crisis, China lockdown - In today’s VUCA (Volatile, Uncertain, Complex and Ambiguous) environment, unexpected market demand and supply disruption can occur at any time. However, organizations that proactively come up with robust contingency plans based on different economic recovery outlooks by understanding cash flow, profit and loss, and balance sheet impact, will be able to ride the waves of uncertainty instead of being overpowered by them.

    Proactive scenario planning will help the organization comprehend the demand upside that can be covered with the current supply picture and percentage of demand that will be unmet in the event of a supply disruption. The keys to planning and executing smooth operations are understanding how these different demand realization and supply risk scenarios impact your business and coming up with business plans that are more balanced from a resilience and efficiency perspective.

    There are predictive technologies available today designed to synthesize vast amounts of current and historical data to facilitate forecasting and event-driven scenario planning. Using AI and automation, supply chain planners can simulate scenarios and prescribe rather than just predict with the requisite speed and accuracy needed to navigate these turbulent times. Once the implications from cash flow, profit and loss, and balance sheet impacts are understood, the organization can assess the costs and benefits associated with proactively adding capabilities to increase supply chain resilience.

  • Driving automotive success
    at Adient

    With 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


Analyst Recognition

Forrester’s Total Economic Impact™ Study shows huge ROI for Luminate Planning

Commissioned by Blue Yonder, a Forrester Consulting study found diverse customers in the manufacturing and distribution sectors achieved compelling economic benefits and return on investment by replacing their labor-intensive, spreadsheet-based supply chain planning processes or legacy applications with Blue Yonder Luminate Planning™. The findings showed that integrated planning workflows enabled by the solution can help customers realize the following gains:

  • 524% ROI

    524% Return on investment over three years

  • $129.8 million

    Total benefit of $129.8 million over three years

  • $109 million

    Total Economic Impact™ $109 million over three years

*Figures based on a $10bn company implementing Blue Yonder Inventory Optimisation and Demand and Fulfilment.

Learn how Luminate Planning Delivers ROI

Blue Yonder is Proud to Support the Automotive Industry


Driving automotive success at Adient

  • With 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



Ready for the pedal to hit the metal?

Request a demo

Success!

Thanks for your interest, a Blue Yonder team member will be in touch soon!