Need for Speed: Digitalization in the Automotive Industry
The automotive industry has emerged as a force to be reckoned with, propelling the economy’s growth narrative with enthusiasm and vigor. According to RBI figures, the industry contributes a significant 10-12% of the GVA of the manufacturing sector, underlining its importance to the economy.
Goals and objectives that automotive firms’ CPOs aim to carve out an intelligent, agile, and future-ready unit.
1. Building Resiliency in Supply Chains, Procurement, and Manufacturing
CPO now needs an anti-fragile supply and value chain that can embrace and adapt to the demand of supply chain flexibility.
2. Building Data and Digital Capabilities in The Value Chain
Digitization took the front seat in the wake of the first lockdown. CPOs across the automotive industry had to think on their feet and ensure that their stalled supply chain remained visible and traceable across the value chain. The right approach to digitization includes the extended vendor network to avoid silos of data collection and visibility down to the last mile.
3. Using Data for Seamless Physical – Digital Integration
A smarter data-intelligent business helps automotive firms eliminate price variations across plants while improving plant visibility and tracking real-time orders. It also sets up evolved ERP planning as a norm across the value chain universe of the automotive firm. High-quality data collected from vendors, OEMs, and suppliers deliver actionable insights to large firms.
The Final Word
Automotive firms were dealt a tough hand during the pandemic, and the more agile among them have responded by initiating a paradigm-changing transformation in the supply chain. Setting aside the threat of disruptions, elevating businesses to achieve holistic data intelligence has yielded impactful results such as improved supply risk management, robust savings on outlays, inventory reduction, and a dramatic fall in supply line choke-ups.