Overview of the Automotive Industry
As sales continue to shift and environmental regulations tighten, the global automotive industry is relying on innovations to improve product offerings and enhance operational efficiency. Amid the recent economic crisis, the industry has witnessed a considerable growth with the rising investments in emission reduction technology and autonomous vehicles. The growth of the auto accessories space can be characterized by the rising per capita income levels and the burgeoning middle-class population in the emerging economies. Moreover, as the demand for new automobile increases, prominent players are necessitating the need for more automotive components from industry operators.
While the automotive industry experts are optimistic about the growth of the auto accessories space, there are several factors that may influence the growth of this sector:
- Intense competition: With the presence of numerous OEMs, the auto accessories space is witnessing a robust competition. To keep pace with the rising competition, prominent players in the auto accessories space should rely on innovations to improve the production capability, encourage lean manufacturing, and enhance quality improvement. Also, the growing demand for customization is compelling auto accessories players to streamline their operations and meet the relentless consumer demands.
- Digital transformation: The recent study estimates that nearly15%of the global revenue will be generated online. This can have a greater impact on R&D, procurement, assembly, and marketing of auto accessories. Hence, it becomes essential for the businesses to shift toward digitization such as on-demand mobility services and data-driven
The Business Challenge and the Journey
The client, a renowned auto accessories manufacturer wanted to identify, assess, and mitigate risk in the supply chain process. With the help of industry best practices, the client wanted to reduce vulnerability and ensure continuity by profiling the most suitable suppliers. The client wanted to evaluate each supplier through an initial segmentation analysis and further develop mitigation strategies to curtail risks.
To understand the potential risks and make informed business decisions, the supplier risk analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the auto accessories space. To gain more timely and accurate view of the supplier performance, the experts collated information from sources ranging from industry forums, magazines, and trade shows.
SpendEdge’s supply risk analysis solution helped the auto accessories manufacturer mitigate supply chain risks and improve collaboration with the trading partners. The client was able to continuously monitor the suppliers to protect the business from financial and operational risks. The solution also helped the client include risk management and due diligence as a part of their entire source-to-settle process.
Fundamental questions answered in this supplier risk analysis solution include:
The engagement offered by SpendEdge helped the auto accessories manufacturer manage risk throughout the lifecycle of the supplier. The solution helped the client certify suppliers, monitor external and internal levers, and successfully deliver the products and services. Furthermore, the solution also helped the client increase efficiency, maintain compliance, and gain better visibility into the actions.