How to Make Automotive Supply Chain More Efficient

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Companies across the board are spending considerable time in analyzing their supply chain processes, in order to identify opportunities for enhancing profit margins and hence improve the bottom line. Automotive industry supply chains are becoming increasing complex; and there is continuous pressure to reduce cost, increase quality and meet timelines.

To optimize their logistics and supply-chain management strategies, automotive manufacturers need to have the ability to track large amounts of data across the globe to provide a high-level overview of where supply chain time and money are spent

Some key aspects to consider and evaluate


The automotive industry was one of the first to utilize such a high proportion of parts and manufactured components from around the world as a global network of low-cost suppliers emerged. With that came the inherent supply-chain and logistics challenges.

For many U.S. brands, a permanent presence in China (that makes it possible for them to establish a foothold in the Chinese domestic market) is an absolute necessity.

Cost Competitiveness

Finding the next low-cost manufacturing option (North Africa being next on the list) is such a priority that optimizing supply-chain logistics to facilitate those strategic moves becomes correspondingly critical. Time is money, and overcoming the logistics burden and cutting through the complexity of an international manufacturing model is critical.

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