The automotive supply chain is extremely complex. From the intricate vehicle design and engineering, to ensuring the right part arrives at the right time without any defects, to putting it all together in time for distribution – a perfectly functional automotive supply chain is nothing short of a miracle. But things don’t always go according to plan. With so many moving parts, automotive designers and manufacturers need to think ahead and prepare for challenges.
In this article, we’ll explore some key automotive supply chain challenges and provide insights into possible solutions.
Poor supply chain visibility
With so many parts that need to be sourced, an unexpected delay in one part of the chain can slow down the entire manufacture and distribution process. This is why supply chain visibility is so important: with clear communication from vendors to determine what needs to be delivered and when, it’s easier to find an alternative should something go wrong. Unfortunately, this isn’t always the case – especially with larger, more complex supply chains like that of the automotive industry.
The problems of poor supply chain visibility are only amplified with global supply chains. Given the changing and diverse socio-political and legislative climates, automotive manufacturers need to be informed of potentially disruptive developments as early as possible. And this doesn’t even factor in global disruptive events like the coronavirus pandemic – which revealed just how fragile and interdependent the automotive supply chain is.
For example, as The Wall Street Journal recently reported, the entire industry is considering moving away from the “just-in-time” manufacturing model towards stockpiling parts. Without visibility into supply chain risks, relying on the immediate sourcing of auto parts can leave your company and customers waiting weeks, months, or even years for a final design to be fully realised.
Overcoming this challenge
Maximising supply chain visibility involves creating and maintaining clear communication lines across your supply chain. Technology is a true asset, as there are a variety of supply chain visibility tools that ensure your internal team has access to real-time data and can flag issues before they occur. The right technology can also ensure accurate data collection across the supply chain, with actionable analysis and visualisation. End-to-end supply chain visibility should factor in component management, acquisition, and distribution. Where possible, IoT and radio-frequency identification (RFID) technology should be leveraged to know where each part is in its automotive journey. At tesa, we facilitate the mounting of RFID chips on automotive components, including car bodies.
Supplier quality and risk
Having visibility into your supply chain will only get you so far if your suppliers themselves are the issue. A key automotive challenge in 2021 is ensuring all suppliers provide tangible value to your brand and product, without compromising quality, speed of delivery, or reliability of outcome.
For a modern supply chain to succeed in an uncertain future, each link must be the best-possible fit, bringing more to the table than a mere product or component. Your suppliers should have industry expertise and foresight to help you predict and manage environmental threats. They should actively facilitate your supply chain visibility, keep you informed of any regional legislative developments, and share your product vision as an essential partner. They should also be communicative in their own processes, so you can rest assured they aren’t creating unnecessary risk.
Overcoming this challenge
The simplest way to overcome this challenge is to hold suppliers to a higher standard. Practically, this may entail conducting extensive risk and quality assessments before onboarding new suppliers. For existing suppliers, reviewing the entire engagement history with a critical eye can uncover areas for potential improvement – or reveal ways they’re holding your company back.
Another strategy is to build a network of alternative or contingent suppliers to fall back on if existing suppliers fall short. This is also an opportunity to assess potential new partnerships without derailing existing vendors.
Rising above future challenges
We’ve only scratched the surface of potential automotive supply chain challenges in the years to come. But as new challenges are always on the horizon, it’s important to build a resilient supply chain with the right partners.
At tesa, we take great pride in being a model supplier for the world’s leading automotive brands and OEMs. With outstanding expertise in adhesive technology and parts mounting, we offer guidance, knowledge, and insight at every engagement.
To learn more about how a supplier like tesa can make your next automotive design and development project better than the last, download our free ebook using the link below. You can also learn more about our attachment parts mounting solutions here.
