Overview of the Automotive Electronics Industry
In the recent years, the automotive electronics space is witnessing a promising growth, owing to the shifting consumer preferences toward vehicles with safety equipment. The rising demand for map-supported front lighting, collision warning, and speed alert is fueling the adoption of automotive electronics components. With the relative advances in technology, renowned manufacturers in the automotive electronics space are focusing on innovations to reduce costs and stay ahead in the competition. Moreover, the increase in consumer spending on entertainment systems including satellite radios, MP3 players, and rear set entertainment systems is anticipated to enhance the growth of the automotive electronics space.
Here are some of the factors influencing the growth of the industry:
- Strict safety norms: In the recent years, the automotive electronics space is witnessing stringent regulations in terms of the quality of their products offered. With the growing regulations on safety, organizations are compelled to invest heavily in application areas to increase the overall efficiency and reduce the impact and likelihood of accidents.
- Increase in consumer spending: With the recent economic recovery, the consumers’ spending has increased, and they are shifting their preferences toward vehicles considering the safety aspects in it. In addition, the governments’ initiatives such as rebates on car loans are further compelling consumers to increase their spending on automobiles.
To address such challenges and efficiently profile the prominent suppliers, leading organizations are augmenting the need for a supplier profiling solution.
The Business Challenge and Our Journey
The client, a renowned automotive electronics manufacturer, wanted to identify the prominent suppliers and segment them based on the cost structure and profits. With the help of industry best practices, the automotive electronics manufacturer further wanted to gain better visibility into the supply chain process and improve the efficiency in the supply chain process. Moreover, through an effective supplier profiling solution, the client also wanted to devise an effective supplier management solution to monitor supplier parts issues, identify risk, and evaluate the supplier performance.
To gain better visibility into the automotive electronics manufacturing space, the procurement experts at SpendEdge carried out an extensive research methodology comprising interviews and discussions with prominent stakeholders in the industry. To improve the on-time delivery of the products, the experts also compiled information from reliable sources such as trade shows, paid industry databases, and industry forums in the automotive industry.
The supply management solution offered by SpendEdge helped the automotive electronics manufacturer profile the potential suppliers and identify their strengths and weaknesses. Moreover, the solution also focused on developing better operational facilities and enhancing the functional capabilities. The client was further able to compare the performance of the suppliers with that of the competitors and identify the best negotiation levers.
Fundamental questions answered in this supply management solutions include:
The supply management solution offered by SpendEdge helped the automotive electronics manufacturer improve their supply chain efficiency and build robust relationships with the suppliers. The engagement also focused on preventing supply chain disruptions while maintaining their revenue and reputation. Moreover, the supplier risk solution also helped the leading automotive electronics manufacturer refine their business models and make timely, contextual, and accurate business decisions.