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Creating a Dynamic, Demand-Driven Supply Chain

Every supply chain has its own unique challenges, but none so much as the automotive industry, perhaps. As Thad Zylka states, the auto industry has experienced immense disruptions from territorial disputes in Asia as well as natural disasters which have affected that area as well. If you put these disasters alongside the trouble that the auto industry has already been facing and you can begin to see the bleak picture. And then you have the very nature of the auto industry to consider: Every modern supply chain is complex, but the automotive industry faces special challenges. If not addressed and well-managed, these challenges can result in lost sales, underutilized global assets and significant investments in facilities, people, new products and other initiatives that fail to achieve a full payback. Additionally, they can result in surplus inventories that need to be purged through customer incentives – or conversely – inventory shortages that benefit competitors. Zylka lists nine core competencies that can help the auto industry (and in some cases, any supply chain dependent industry) be more flexible, agile, and data-driven:

  • Real-time forecasting
  • Global sales and operations planning
  • Enhanced supplier and collaboration monitoring
  • More efficient assembly
  • Transportation optimization
  • More effective pricing and promotions
  • Fact-based vehicle portfolio management
  • Effective space parts planning and replenishment

While the list has some elements that are very auto industry specific, suggestions like enhancing collaboration monitoring and real-time forecasting can easily be applied to all industries. The truth lies in the ability to see and respond to the environment, respond to changes and mitigate risks.

About Matthew Kabik

Matthew Kabik is the former Editor of Computer Aid's Accelerating IT Success. He worked at Computer Aid, Inc. from 2008 to 2014 in the Harrisburg offices, where he was a copywriter, swordsman, social media consultant, and trainer before moving into editorial.

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