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Automotive Supplier

Automotive industry suppliers have seen more growth over the past two decades than almost any other sectors. This development has benefited massively from an increase in parts variants, higher parts complexity, the emergence of new technologies and a vastly increased share of value added. Simultaneously, the competition and cost reduction pressure have soared. The main reasons for this development are the trend of global sourcing of the car makers and the 1st tier suppliers, rising raw material prices and above all sustained cost-reduction programs across the entire industry. Shorter product life cycles, increasing part variance coupled with shrinking quantities, and the difficulties in demand planning are forcing the industry to embrace the mantra of flexibility in both production and logistics.

Challenges in maintaining the competitiveness:

  • A worldwide production network with local factories offering customer proximity
  • Global sourcing including long logistics chains and an increasing local content ratio
  • Stock optimization and minimal lead times in global supply chains
  • Just in Time (JIT) and Just in Sequence (JIS) production and suppliers guaranteeing absolute supply reliability and product quality
  • Lean management in production and logistics to enhance efficiency and flexibility, introduction of a company-specific production system
  • Implementation of customer standards and delivery of requested supply variant
  • Use of intelligent planning and execution systems in production and logistics
  • Supplier management using Supplier Relationship Management tools (SRM)
  • Positioning with new components in the future market of electric vehicles
  • Participation in the independent aftermarket