Achieving Organizational Objectives With the Aid of Industry Best Practices Benchmarking Study
Overview of the global auto parts market The global automotive industry is experiencing rapid technological transformations, thanks to disruptive innovations that are driving these changes. Several new markets have opened up growth avenues and new market trends have paved their way to success. What’s even more interesting is that the convergence between auto manufacturers and […]
Overview of the global auto parts market
The global automotive industry is experiencing rapid technological transformations, thanks to disruptive innovations that are driving these changes. Several new markets have opened up growth avenues and new market trends have paved their way to success. What’s even more interesting is that the convergence between auto manufacturers and technical solution providers is blurring industry lines and expanding the bounds of the traditional automotive industry.
“Improvements in competitive pricing, product quality, and development of new automotive models will assist auto parts manufacturers to perk up the competition.”
Considering the fast-paced automotive environment and technological innovations that take place on a daily basis, business models and industries are subjected to rapid disruptions and transformations. However, such factors alone do not determine the risk mitigating ability of companies in the auto parts manufacturing space.
In addition, as the views of consumers evolve from an ownership-centric outlook to a service-centric mindset, the supply chain will be at the core of this transformation. Companies will have to adapt and incorporate specific supply chain strategies to gain a stronger foothold. In the midst of these factors, enhancing market share, developing industry benchmarks, and complying with regulation becomes a major concern for the manufacturers of auto parts.
The Business Challenge and Journey
Client background: A fortune 500 multinational corporation, the client is a leading player in the automotive industry, specializing in the production of auto parts and a multitude of auto components. Headquartered in the United States, the company employs over 70,000 employees while providing services to customers in over 30 countries.
- Client issue: The biggest concern of the client was to enhance the efficiency of their business operations, by comparing their business plans with the industry best practices.
- Client journey: The client gained a better understanding of the automotive industry benchmarks, major risk factors, supplier negotiation strategies, industry standards, and expectations. They also implemented industry best practices across the supply chain and improved internal benchmarking to enhance performance in different departments. The solution offered touched upon various aspects of the auto parts industry – industry standards, supply forecasting, demand forecasting, material procurement, product quality engineering, value product engineering, logistics, and sourcing strategies.
Research methodology: To help the client identify the industry best practices and set benchmarks to drive strategic value across their supply chain, the industry best practices experts at SpendEdge devised an integrated research approach. The approach included primary research coupled with qualitative and quantitative data collection methodologies. The experts also congregated information from a wide array of secondary sources such as paid, company presentations, industry forums, and industry database within the automotive industry space.
What is industry best practices benchmarking?
Industry best practices benchmarking is the process of identifying and evaluating the best practices to be adopted by companies in a particular sector. Organizations operating in different sectors can leverage industry best practices to enhance the efficacy of their overall operations.
Moreover, the process of benchmarking industry best practices involves identifying problem areas and comparing them to the best practices in the industry and implement the necessary changes. Also, organizations that have successfully implemented a system for benchmarking and best practices report significant savings and improved performance.
Key questions answered in this industry best practices benchmarking study include:
The auto parts manufacturer achieved their organizational objectives and managed to expand their supply chain operations. This was made possible by identifying the best practices for sustainability in the auto parts industry and by comparing their performance with that of their competitors. Additionally, they leveraged internal benchmarking to enhance performance in different departments.
With the emergence of autonomous vehicles and growing popularity of the connected cars revolution, the automotive industry is set to undergo drastic transformations in the next few years. This makes it all the more essential for auto parts manufacturers to enhance topline growth strategies while developing new sustainable practices to improve cost efficiency and profitability. Therefore, it is evident that those who deploy supply chain transformation strategies now will be in a better position to succeed in the future.