Overview of the Automotive Industry
In the Europe alone, the automotive industry accounts for nearly 12 million jobs.
Amid the recovery from the economic crisis, the automotive industry is witnessing a constant change owing to the demanding environmental requirements and the rise of new players. Moreover, the industry at large is emphasizing on harnessing their limited capital resources to enhance their production capabilities. With the growing innovations, prominent organizations are increasingly leveraging technology to better match the demands of the consumers.
Although the automotive manufacturing space is witnessing a promising growth owing to a considerable number of players, some factors may influence the growth of the industry. These include:
- Complexity and cost pressure: The rising complexity in terms of regulations to improve the safety standards is compelling organizations to improve their production efficiency while compromising on the costs. Moreover, organizations are facing the need to develop alternative power-train technologies to differentiate themselves from other competitors.
- Shifting industry landscape: With the presence of a considerable number of OEM players, organizations need to ensure affordability and efficiency in the product offerings. Organizations should also streamline their marketing demands to meet the changing customer preferences. Moreover, the fluctuation marketing conditions are also compelling businesses to ensure consistency in the product offerings while meeting the quality requirements.
The Business Challenge
Like all other companies in the manufacturing space, the client, a renowned automotive manufacturer wanted to potentially identify the prevailing threats across the supplier network and develop robust mitigation strategies. The client also wanted to gain better visibility into their supply chain operations and devise ways to efficiently manage the supply chain risks. Through a reliable supply chain risk analysis solution, the client in the automotive manufacturing space wanted to save logistical costs and increase the product quality.
To understand the market conditions, supply chain risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the automotive manufacturing space. Moreover, the experts also compiled information across a wide array of primary and secondary sources such as paid industry databases, company presentations, and industry forums in the automotive manufacturing space.
The supply chain analysis risk analysis offered by SpendEdge helped the automotive manufacturing client devise effective risk mitigation strategies by utilizing resources such as the people, process, and technology. The client was able to understand the current state of the supply chain and accurately forecast the disruptions to improve the business performance.
Fundamental questions answered in this supply chain risk analysis include:
During the course of the supply chain risk analysis engagement, the client in the automotive manufacturing space was able to assess the impact of these risks on the business performance. The client was able to identify the most critical suppliers for the business and prevent and mitigate the impact of supply chain breakdowns.