Automotive

Mass differentiation, global competition, shortening product development cycles, just in time, moving from good offer to an offer of service, the automotive sector continues to accelerate.

The challenges of the sector

Innovation to differentiate
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• Mass differentiation, ability to offer custom-made products based on a standard product.
• In line to the previous point, the make to order processes are becoming more prelevant.
• Technological breakthroughs in engines: electric vehicles, hybrids.
• Increasingly stronger alliances between manufacturers and major players in the WEB (driverless vehicle, integration with smartphones, geolocation).
A complete service offer
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• Car-rental, financing, and leasing services
• Emergence of new uses: carpooling, multimodal transport offer
• Automotive maintenance
• Competition on spare parts supply
• Internet competition for distribution, faster and customer-oriented order management
Pressure on costs, environmental impact and design to cost
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• Environmental requirements, tougher norms.
• Pooling of components, platforms.
• Automation of production, automation of internal logistics.
• Strong R&D investment needed to stay in the market, coupled with outsourcing of R&D to suppliers
Responsiveness, traceability and just-in-time
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• Shared and transversal vision of the Supply Chain with customers and suppliers.
• Growing weight of supplier management, automated information exchange, accurate leadtime requirement driven by late penalties.
• A highly variable demand that imposes increased industrial flexibility to capture markets.
• Small series: manufacture to order, additive manufacturing, reduced lifecycles, product switch management, ramp-up, ramp-down, index change management.
• The triangle quality, security and tracing is more stringent.
Globalization
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• Arrival of new entrants: new brands, increased competition from emerging countries with pressure on prices and innovation.
• Consolidation of car and equipment manufacturers to reach a critical size and smooth the risks by geographical areas/markets.
• Economies of scale by the standardisation of practices.
• Oversea sourcing and lead-time increase.
• Decentralisation of design, development, and production.

Your problems and our solutions

  • Harmonise and accelerate exchanges with your customers, your factories, and your suppliers

    • Put in place differentiated and market-friendly service policies.
    • Synchronise programs and sites around the extended S&OP (constrained capacity control, production and distribution network designs).
    • Homogenise planning practices and facilitate visibility between contractors and subcontractors through Standard Demand Driven MRP
    • Adopt a Vendor Management Inventory (VMI).
  • Accelerate business change and the introduction of new products and services as a competitive advantage

    • Industry and Supply Chain 4.0: additive manufacturing, modular and connected factory, augmented reality, M2M, big data
    • Make possible Product Life Cycle Management, differentiated forecast management, launch / end of life management and product switches through the S&OP process
    • Allow multichannel management for B2B and B2C deliveries with the Retail offer
  • Adapt to variability and uncertainty of demand and customers

    • Adapt flow control and stock policies to target service levels (pull / push feed, decoupling point, delayed differentiation, etc.) through inventory optimisation
    • Improve responsiveness, flexibility of industrial resources and Lean Manufacturing through Performance of industrial operations
    • Prepare and accompany change with Change management
    • Optimise planning via APS (Advanced Planning System) and DRP
  • Reduce purchase, development, production, possession costs

    • Optimize stocks, transport and quality of service (Network Design) thanks to the Logistics and Industrial Network design
    • To allow the mechanization of the warehouses, the internal logistics, the WMS (Warehouse Management System) with the E-commerce and logistics offer
    • Work on optimizing the range in order to make it profitable thanks to cost analysis tools
    • Pilot and optimize upstream, interco and downstream transport via the organization and dedicated tools (TMS: Transport Management System)

Some references of the sector

Knorr Bremse

NTN-SNR

Autodistribution

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Antoine Bernard

Automotive Expert

Managing partner of the firm and specialist of Supply Chain operations management and Lean Management in the Automotive industry, Antoine led projects for Doyen Auto, Autodistribution, Mobivia and Faurecia after having occupied management positions in Supply Chain for a parts manufacturer and a car manufacturer.

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