For more than a century, the global automotive industry has focused on the internal combustion engine. All of this is changing, with huge implications for the end-to-end supply chain. According to McKinsey, by 2030, about 95% of all new vehicles sold globally will be connected, 50% of passenger vehicles will be highly autonomous and 15% fully autonomous, and sales of electric vehicles will range from 10 to 50%. .
As automakers scramble to adapt to digitalization, there is good news: The overall size of the auto market grows from $ 3.6 trillion to $ 7.2 trillion.4. Clearly, automakers face huge opportunities, but also significant exposure to risk, as evidenced by the recent global chip shortage.
As digitalization takes hold, it affects not only automakers, but also the complex ecosystem of dealers, original equipment manufacturers (OEMs), multiple levels of suppliers, third-party logistics providers and suppliers. electronics suppliers. Any disturbance, in any node, sends a boost effect across the entire network.
How can automakers recognize and respond to disruptions? How can they install the extreme speed and resilience of a high-tech company into their end-to-end supply chains?
Three critical capabilities for automakers
Blue Yonder can help. A proven supply chain leader with more than 3,000 customers, including the world’s leading automakers, Blue Yonder delivers three essential capabilities that automakers need today:
- Planning a scenario. Resilience means the ability to quickly reconfigure global and regional supply chain flows, flexibly source components from a variety of suppliers, and constantly compromise based on cost, service and risk analysis. Luminate d’Yonder blueMT Planning solutions help manufacturers develop what-if simulations and contingency plans based on demand realization and supply disruption scenarios using artificial intelligence (AI).
- End-to-end supply chain visibility. Regardless of the complexity of the supply chain, Blue Yonder’s Luminate control tower analyzes the entire ecosystem to provide real-time visibility and responsiveness powered by AI. In the event of a missed part delivery, the control tower evaluates options such as shipping a replacement from the original supplier or shipping from another source. It evaluates the speed of different carriers and routes. It autonomously enables the optimal outcome, based on cost, customer service levels, revenue and margin.
- Omnichannel aftermarket execution. Service level requirements vary widely across channels, including dealers, distributors, e-commerce, and fleet. It means orchestrating personalized, experience-driven supply chains across a complex structure of products, assemblies, part families, and SKUs. Blue Yonder’s AI and automation capabilities dynamically optimize services and bottom lines across all segments.
Real results for automotive leaders
Consider these recent results Blue Yonder has achieved for automakers:
- Mahindra & Mahindra relies on Blue Yonder’s dynamic segmentation capacity to optimize its spare parts inventory. Results include a 10% increase in service levels, a 40% reduction in response times and a 10% increase in forecast accuracy, as well as a 10% to 15% reduction in inventory days. .
- CEAT tires digitally transformed its supply chain with Blue Yonder to achieve precise inventory visibility, data transparency, inventory optimization and performance, ensuring the right products get to the right places at the right time.
- Escorts group implemented Blue Yonder’s solutions to unlock working capital from stocks of its agricultural machinery business. With an agile supply chain that can proactively predict disruption and pivot its response, Escorts now has end-to-end visibility into their planning and can pivot to meet any challenge.
Embrace digitalization with Blue Yonder
In addition to opportunities, the digitization of the automotive industry has brought challenges. Human planners cannot navigate this complex landscape on their own. Blue Yonder’s solutions can help, by applying AI, data science and analytics, autonomously make optimal decisions that balance profit and service, regardless of the digitalization of the industry.