The Automotive Supply Chain is Transforming – Are you Prepared?
on April 2, 2019
As the automotive industry leans towards a more evolved manufacturing system by producing autonomous vehicles, It’s supply chain transforms from something linear to more of a supply network based on real-time data sharing.
According to Sven Dharamani, Global Automotive Sector Supply Chain Leader at Ernst & Young, the failure to adopt more visible and agile processes is down to the longer model lifecycles that vehicle manufacturing is based on. Some of it is down to the combination of plant location and an ageing workforce.
Honda spends $1.2 billion in getting parts from its 600 tier one suppliers to its plants in the region and pointed out that cost pressures were increasing in the supply chain, with the shift towards electrification playing a major role.
With the rise of the autonomous vehicle, logistics efforts will now concentrate on the management of the battery supply chain and the movement of batteries to assembly plants. International forwarding services will develop to move the lithium battery cells from Asia to battery pack assembly plants across the world. This also means overland services will be needed to move those battery packs to the production line on a just-in-time and just-in-sequence basis.
This is where ParceLive can help. Increasing reliance on parts from multiple suppliers and increasingly dispersed vendors can test resilience and effect decision makers in the supply chain. To ensure just in time management systems are running to their full potential the need for end-to-end visibility among the supply chain needs to be addressed and implemented. Internet of Things (IoT) technology is now making it possible to track inventory with pinpoint accuracy achieving full visibility and allowing companies to react immediately to unforeseen supply chain issues.
The images below from the ParceLive dashboard show an example of electric car parts moving throughout the supply chain, notifying the user of important events that the shipment has been subject too such as changes in location, condition and security.
First mile of journey
Last mile of journey
ParceLive dashboard showing supply chain visibility of electric car parts
Unforeseen circumstances such as car accidents, traffic, customs checks and delayed flights can be dealt with by allowing ParceLive users to react and be pro-active about failures in real-time. With real-time alerts, ParceLive users in this instance will be able to access the security of their assets, such as the condition of lithium battery cells, ensuring that they have not been affected by intense fluctuating temperatures or impacts from poor handling.
Businesses need to capture the data as it happens and act upon it. Using ParceLive can help those in the automotive industry react in real time to incidents out of their hands whilst having invaluable visibility for the just in time production line.