CASE STUDY

Minimizing Risks and Reducing End-to-end Supply Chain Costs for an Automotive Company

Jul 16, 2019

Automotive Industry Analysis

The automotive industry plays an important role in maintaining the economic health of European countries. The turnover generated by the industry accounts for almost 7% of the EU’s GDP. However, despite the market witnessing promising growth, companies in the automotive industry need to redesign their supply chain strategies to prepare themselves for any unforeseen risks and transformations.  

Business Challenges Faced

The client – a leading original equipment manufacturer (OEM) in the automotive industry – wanted to identify potential opportunities and risks in the supply chain amid wrenching changes in global economies. They wanted to gain in-depth insights into the supply trends impacting operations in the European market. The client, therefore, approached SpendEdge to leverage its expertise in offering supply side risk assessment solutions to better understand the current structure of the supply chain and devise effective supply chain strategies. 

Key objectives the client aimed to achieve through this supply side risk assessment were:  

  • Mitigate chances of supply failure occurring due to supplier or logistics delays.
  • Reduce the possibilities of out turn costs being higher than the anticipated costs.
  • Minimize risks associated with quality failure, product failure, and latent defects impacting auto sales growth.

Identifying and mitigating supply chain risks is crucial for companies to ensure sustainability and profitability in the automotive industry. Request a proposal and access our complete portfolio of supply chain risk analysis solutions for free.

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Our Research Approach

As a part of supply side risk assessment, the experts at SpendEdge identified potential risks associated with the supply chain. They assessed each risk and predicted the likelihood of risks being realized and the severity of the impact. Also, they analyzed factors such as ongoing austerity economics, environmental concerns, and new technological advances influencing profitability across the supply chain to develop a robust contingency plan.

With SpendEdge’s supply side risk assessment solutions, the client was able to identify risks related to manufacturing, logistics, and inventory. This helped the client to develop an effective contingency plan and invest in local skills and resources while ensuring quality. Also, the OEM was able to streamline operations from component supply for manufacture to vehicle delivery.

Within six weeks, the OEM in the automotive industry was able to gain an in-depth understanding of all network flows and supply chain processes across the organization to re-engineer and develop an optimized supply chain.

Engagement Results and Benefits

Increased efficiency

The supply side risk assessment helped the client to streamline operations, control complex operational movements, and sync deliveries with the production schedule. This improved the flow of materials required in the production line, optimized plant usage, and increased efficiency.

Reduce supply chain costs

The solutions offered further helped the client to make their supply chain more agile and focus on core business objectives. This significantly reduced the operational and capital costs and enabled the client to scale up or down to meet requirements or overcome disruptions in the global automotive industry.

Reducing supply chain costs requires companies in the automotive industry to analyze different supply trends and market scenario. Request a free demo from our experts to gain 7-day free trial.  

Supply Side Risks faced by Companies in the Automotive Industry 

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