automotive industry trends Archives - SpendEdge

Tag: automotive industry trends

Minimizing Inventory Costs and Optimizing Cash Flow for an Automotive Industry Client – SpendEdge’s Supply and Demand Forecasting Engagement

The client is a leading automotive market player, established in the US. They employ over 6,500 people.

Predicaments Faced 

Being a new market player, the automotive industry client wanted to leverage SpendEdge’s supply and demand forecasting strategy in their pricing and procurement decision making. The automotive industry company was also looking at adopting a process to balance out the irregularities in the supply and demand curve. They also wanted to ensure that their products are produced at the right time and delivered seamlessly. Moreover, with the help of SpendEdge’s supply and demand forecasting solution, the client wanted to coordinate the planning and marketing process to reduce inconsistency and address issues pertaining to operational inefficiencies and missed opportunities.


4 Ways to Improve Supply Chain and Procurement in the Automotive Industry

Today, the automotive industry is one of the most rapidly growing industries globally. Furthermore, being the most innovative sector, a fierce competition is at the core of the automotive industry. In fact, it would not be wrong to say that the success of both the manufacturers and the suppliers in the automotive industry is completely dependent on their collaborative behavior against the need of the customer. One of the most common issues currently impacting the automotive industry supply base is keeping up with the growing volumes, which has resulted in shortages in supply. Aiming at the outcomes, a competitive supply chain capability not only assures the delivery of component material on-time but also the execution of inbound supply to guarantee the shipment of quality finished goods at a competitive price. Therefore, improving procurement and supply chain process in the automotive industry is a significant challenge as well as an opportunity today. So, in this article, we have discussed a few very important ways to boost the supply chain and procurement which in turn can result in improved cost savings as well as better customer experiences in the automotive sector.


Top Material Handling Trends in the Automotive Industry

Material handling in the automotive industry has witnessed several changes over the years. Owing to these changes, the production and output levels have scaled up nearly ten times over the past three decades. Also, companies in the automotive industry are employing advanced R&D programs that focus on reimagining what the next gen automobile manufacturing plants will look like in a world that is connected and data-driven and supported by rapid production systems.

The automotive industry faces several challenges such as market saturation and overcapacity, international competition, increasing variability between car models driven by shorter time-to-market demands, and a changing regulatory environment. We are stepping into a new era of automotive manufacturing that relies on “smart” factories. And these “smart” factories will require an entirely different approach to material handling equipment and systems to make new types of production possible. Here are the top four material handling trends that  are all set to revamp the way players in the automotive industry do business:

Material Handling Trends in the Automotive Industry

Flexible manufacturing

Today’s assembly lines rely on rigid, single-purpose machines. These modern assembly lines are based on modular or linear production. However, the demand in the automotive industry is highly dynamic and fluctuating from time to time. When there is a change in market demand, it consequently requires the production line to respond to these changes. Companies in the automotive industry who want to be quick in adapting to the changing demands will need to have flexible material handling equipment. Flexible production will require several changes including faster time-to-market for new concepts, a production floor responsive to customer behavior and market demands, and 24/7 production.

360-degree connectivity

In the automotive industry, material handling is already highly automated. With the progress in the digital age, increase in connectivity between applications and decentralized solutions will result in automation being developed further. With fully connected and decentralized material handling, technical support across various vendors and suppliers become much more accessible and standardized. By establishing 360-degree connectivity, automotive players can gain transparent production system analysis and easy optimization, more flexible machine parameters, and servicing can be done on a communication network or mobile device.

Total process simulation

Most of the new manufacturing or assembly design projects in the automotive industry are supported by simulation. Material handling components put parts, fasteners, and finished products in motion, therefore, play a significant role in simulating everything from complete factories to single processes. However, total process simulation requires large amounts of data but several suppliers might not be in the position to provide information in the form that can be integrated into the simulation tool. Therefore, companies must choose suppliers that can best optimize a simulated process. Total process simulation offers benefits such as more accurate and reliable planning, improved ROI, and flexible adaptations and modifications before a design is implemented.

Resource efficiency

The automotive industry on the lookout for ways to reduce costs and increase efficiency and anything that helps do so will likely play a vital role in the industry’s future. Energy efficiency is an ongoing goal for material handling. Automotive companies and their suppliers use a host of methods to reduce energy consumption and including energy calculations to reduce the odds of buying oversized equipment, adopting optimized logistics, and using energy-efficient components. Energy efficiency provides the automotive industry players with the following advantages – Reduce energy consumption and associated costs, promote carbon-neutral production and make plans accurate and reliable by defining the energy consumption of the new project.

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The Countdown: Top 7 Auto Parts Manufacturers in the US

auto parts

The US continues to reign as ‘the World’s largest contributor to the global automotive market.’ As a result, there has been a consequent growth in the related markets such as auto parts and tire manufacturing. According to industry experts, since 2016, the US auto parts market has surpassed $ 70 billion in revenue. The hike in sales in the automotive industry, increasing focus on automotive aftermarket, and the expansion of the spare parts market are some of the factors that would help boost the sales of auto parts in the years to come. Here is the list of the top seven auto parts manufacturers in the US:

Top Seven Auto Parts Manufacturers in the US

#7: Goodyear Tire and Rubber Company

Goodyear Tire and Rubber Company, founded in 1898, is based out of Akron, Ohio. It is one the world’s largest American multinational tire manufacturing companies. In addition to producing tires under the label of Goodyear, the company also houses other well-respected international brand names in tires, including Dunlop, Kelly, Fulda, Sava, and Debica. The company has expertise in non-tire business that provides rubber products and polymers for a variety of markets.Request Demo

#6: American Axle & Manufacturing

American Axle & Manufacturing is a global leader in the design, engineering, validation and manufacturing of driveline, metal forming, powertrain, and casting technologies for the automotive industry. To support their customers on global and regional platforms with a focus on quality, operational excellence, and technology leadership, the company has over 25,000 associates operating in more than 90 facilities in 17 countries.

#5: Visteon

Visteon Corporation is a leading global auto parts supplier that designs, engineers and manufactures innovative electronic products, especially automotive cockpit electronics for vehicle manufacturers. Visteon supplies auto parts to some of the recognized brands in the automobile industry such as Ford, Renault/Nissan, PSA, JLR, VW, Mazda, BMW, GM, Honda, Daimler, and others.request proposal

#4: BorgWarner

BorgWarner Inc. is a prominent supplier of components and auto parts in the global automotive industry. The company is well-known for its automotive powertrain products for light vehicles, medium & heavy-duty vehicles, off-Highway, and aftermarket. BorgWarner employs a 27,000 strong workforce in 62 facilities across 17 countries.

#3: Tenneco

Tenneco is headquartered in Lake Forest, Illinois. The company is one of the world’s leading auto parts manufacturers. Their expertise also lies in the distribution of clean air and ride performance products and technology solutions for diversified markets, including light vehicle, commercial truck, off-highway equipment and the aftermarket.

 #2: Lear

Lear Corporation is a leading supplier of automotive seating and electrical parts. Lear serves its customers with global capabilities while maintaining individual commitment. The company is headquarters in Southfield, Michigan. They operate in 257 locations across 38 countries around the globe and employs approximately 156,000 employees.

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# 1: Dana Inc.

Dana Incorporated is one of America’s largest suppliers of the drivetrain, sealing, and thermal-management technologies for auto industry worldwide. The company was founded in 1904 and is headquartered in Maumee, Ohio. Dana Incorporated products have helped to drive some of history’s greatest vehicles such as the World War II-era Jeep®, London taxicabs, 18-wheel rigs, and giant earth-moving machines.

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