Jul 21/23
Top Supply Chain Solutions for the Automotive Industry
Almost half of all small businesses said that supply chain disruptions caused by the COVID-19 pandemic made it difficult to keep up with customer demand. More than 63 percent said that they have had to change supply chains because of it.
While those challenges are mostly behind us, it alerted businesses to how devastating such disturbances can be. It also prompted automotive manufacturers to explore new supply chain solutions so that they are better prepared when challenges arise. Once you understand what these strategies are, you can tailor-fit them to your industry or project.
Below are the top supply chain management tips for the automotive industry. Keep reading to find out how to ensure you have the parts you need when you need them so that you can better serve clients and grow your business.
Find Dependable Suppliers
One of the best things you can do to optimize parts availability is to go with reputable suppliers. You want companies that maintain the highest standards of customer service and quality. Suppliers that habitually miss deadlines are doing you a disservice that will continue to hurt your business.
Even the best suppliers can be affected by parts shortages. The important thing is that they are honest with you about foreseeable challenges.
Good communication cannot make the part appear, but it can give you the time to find alternative solutions. If nothing else, it allows you to contact clients and adjust your manufacturing schedule.
Data Collection and Logistics
One of the best things you can do to plan for the future is to look at the past. Collecting data about fluctuations in parts availability allows you to have realistic expectations. It lets you plan more effectively.
Having a better understanding of supply chain trends makes you more ready for the worst-case scenarios. It also lets you better anticipate issues that could affect your production schedule. Doing your homework can go a long way in developing better logistics.
Make Use of Technology
It is easy to get comfortable with the software and systems that you and your team are used to. But do not overlook the usefulness that technological upgrades can provide to supply chain management.
From finding misplaced packaging to real-time tracking of shipments, new programs can help you streamline production. It can make you more efficient, which saves money and helps keep your clients happy.
Outsource Services
Maintaining an effective automotive supply chain requires time and labor management. It means you have to juggle myriad workflows.
Look for third-party logistics providers that can help streamline these endeavors. These companies specialize in finding supply chain solutions. They can adapt them to your unique operations.
Besides managing inventory, some of these companies can provide warehousing. This too, can save you time and money. Outsourcing also allows you to focus on the more important aspects of your business, such as innovation
Learn More About Supply Chain Solutions
Now that you know some ways to address supply chain challenges, you can ensure you have the parts you need to meet client demands. Consider hiring an experienced auto marts management consultant for further advice on implementing supply chain solutions.
Mayco International is a Tier 1 parts supplier with more than 6,000 employees in 47 plants across the globe. Our goal is to be the supplier of choice in the development, validation, tooling, and manufacturing of complete automotive interiors and exterior systems. Reach out to us today to schedule a free consultation.