In an interview, Christian Senger talks about the sea change within the company, software as a core competency and changes in supplier management. The iconic manufacturer of vacuum cleaners has cancelled plans to develop and build an EV. Why automotive companies are looking to a new model to enable digital transformation. automotiveIT International brings you tactical insights and intelligence on the innovations and transformational strategies being driven across the automotive value chain globally. Skoda has deployed a new supercomputer that will allow it to conduct more powerful aerodynamics simulations and develop new safety features and engines. IT systems are implemented and leveraged, but digital capabilities still need to be developed. New technology, economic uncertainty and changing consumer patterns are making it vital to for automotive companies to adapt and respond quickly to these changing conditions. As OEMs look to reduce production costs and manage more complexity, automotive suppliers will face challenges. However, today’s legacy, monolithic IT architectures are no longer fit for purpose and are undermining the ability to adapt, innovate, and stay … Key takeaways from the report: It’s why, during the pandemic, companies everywhere needed visibility of … Alexander Buresch is the new CIO at BMW, company sources told automotiveIT. What took the air out of Dyson’s electric car project? However, the digital age is transforming at such breakneck speed that there is the continual fear of being left behind, or even worse, of deciding on investing heavily in a technology that rapidly becomes obsolete. Near-shoring of supply chains is also being explored. We help you embrace digital in how you build your supply chain. By then, however, the industry is likely to have undergone further consolidation. The digital supply chain is a new media term which encompasses the process of the delivery of digital media, be it music or video, by electronic means, from the point of origin (content provider) to destination (consumer). The Volkswagen brand is the first car manufacturer to have a board member in charge of software. Share via email. The report conducted by Capgemini, predicts that automotive companies could see an increase in investment levels and productivity gains as a result of smart factories. 2019-10-02T09:49:00+01:00By Automotive from Ultima Media, As carmakers strive to reach the more stringent CO2 emissions targets being phased in across the EU next year, we predict that many are likely to put more pressure on their supply base to help reduce emissions, 2019-10-02T09:41:00+01:00By Hilmar Dunker. Even the OEMs lack the complete roadmap and steps needed to achieve their ambitious end-state visions. By 2020, growing digitalization and advancements in technology will have increased the automotive industry investments to $82 billion. The London Electric Vehicle Company (LEVC), formerly the London Taxi Company, has signed a contract with the UK division of transport and logistics provider Gefco for pre-delivery services and delivery to fleet customers. Christopher Ludwig, As OEMs and automotive parts suppliers see their margins decline, cost pressures are going to increase on logistics operations and service providers further down the supply chain, 2020-01-24T06:00:00+00:00By Daniel Harrison, To do this, they need to run flexible and responsive automotive supply chains. 2019-10-11T07:09:00+01:00By Arjen Bongard. BMW has embarked on a programme that aims to tighten every single link in their supply chain, external and internal, to … 2019-10-30T12:29:00+00:00By Automotive from Ultima Media, Sales of hybrid and battery electric vehicles are set for significant regional divergence, which could fragment economies of scale across automotive production, R&D and technology costs, according to a new powertrain forecast by Automotive from Ultima Media, 2019-10-25T09:44:00+01:00By Arjen Bongard. Porsche and SAP will work closely together on new initiatives for the digital transformation of the German sports car maker. New technology, economic uncertainty and changing consumer patterns are making it vital to for automotive companies to adapt and respond quickly to these changing conditions. Typically, engineering, manufacturing and procurement all have different data standards and formats and are initially unable to align design, build and cost data to maximise the benefits from digitalisation. A significant imbalance of digital resources across functions makes it difficult to build a one-size-fits-all approach that can be utilised efficiently and effectively, resulting in silos of technology being adopted sporadically across the organisation. Welcome to www.automotiveit.com. Supply Chain Transparency. Learn more about what Kearney can do for you. Materials handling expert Tracy Brooks from Hyster reveals some of the trends to watch out for in the automotive supply chain as we approach 2018.. 1) Automated handling (AGV) Driverless transport systems have until now primarily been used for highly repetitive tasks, such as … Digitalisation of the automotive industry is a topic that has been high up on most OEM and tier one supplier agendas for some time. UPS, which received official US approval for drone deliveries last week, said it would quickly expand the use of the airbone delivery technology. He is succeeded by management board members Jennifer Morgan and Christian Klein, who will serve as co-CEOs of the world’s largest business software group. The smart automotive supply chain takes full advantage of increased instrumentation, interconnectivity, and intelligence to reduce cost. We expect many new opportunities for these companies over the next decade. The automotive … Supply Chain Digital Magazine covers procurement transformation, digital supply chain, supply chain of the future, P2P, S2P, procurement & supply chain technology, AI, Automation & Procurement Platforms - connecting the world’s largest community of procurement and supply chain executives. Stefan Issing, global industry director for automotive at Swedish software company IFS, believes in modular solutions. However, further digital tools will be needed to address underlying supply chain vulnerabilities and risks. Overall, the automotive industry has a long way to go along its digitalisation journey. Data inconsistency is another of the biggest challenges that most struggle to overcome. However, the average automotive supplier has hardly started its journey. This is typically due to a lack of any sort of integrated IT infrastructure, both internally but also in connecting OEMs to their supply base. Titled as 'Automotive supply chain- Emerging trends for building intelligent supply chain', the report emphasises on the impact of 'Future of Mobility' and the solutions required to be adopted by the stakeholders for that. The areas of opportunity are typically focused around automated warehousing, connected machines,real-time tracking goods in transit and improved volume forecasting. However, most are doing so with a very mixed approach by combining large-scale digital transformations with mini digital transformations. Digitalisation of the automotive industry is a topic that has been high up on most OEM and tier one supplier agendas for some time. The key term here is “supply chain verification” – the tracking and documentation of supply chains. Gain access to premium content, special offers and more…, Part and parcel of the problem: why tier 1 supplier logistics will face a squeeze, Electric vehicles could transform role of tier 1 suppliers in production and technology, Tearing profits apart: how tier 1 automotive suppliers can mitigate shrinking margins, Automotive Supplier Profit Analysis: Margin Compression And Technology Investment, Why automotive companies are looking to a new model to enable digital transformation, Volvo Cars to use blockchain to trace source of cobalt for batteries, Suppliers will charge the change: opportunities in the EV value chain, Skoda deploys supercomputer for simulation and development, 3 questions for Stefan Issing, IFS global industry director for automotive, A divided global electric vehicle market could limit OEM economies of scale in manufacturing, Porsche and SAP to cooperate more closely on digital transformation. At the same time, automotive manufacturers strive continuously to optimize operations and pursue a balance between cost and needs for talent, quality, delivery and innovation. Volvo Cars says it will become the first carmaker to use blockchain technology to trace the origin of the cobalt it buys for its batteries. Download this report on the top 20 global suppliers for a deep analysis of their historic margins, as well as solutions for how suppliers could cope with growing pressures and changes in technology across the supply chain. Nick Parker is a director at consultancy, AlixPartners. The not-for-profit organisation has secured agreement from multiple automakers to utilise a communal platform to map the automotive supply chain. These smaller-scale changes allow much more targeted benefits in niche business areas, such as developing an in-house bespoke solution to manage pricing complexity in a highly fragmented but specific product group. Inbound Logistics Dedicating time and resources to optimize inbound logistics sometimes takes a back seat to outbound logistics efforts. 2019-11-07T05:30:00+00:00By Daniel Harrison. In today’s automotive market, global manufacturers must meet strict OEM-driven expectations such as delivering excellent quality while ensuring on-time delivery. Automotive Logistics is the leading resource for automotive logistics and supply chain professionals globally. Companies within this vertical have to make sure their value chains are functioning properly and that money is flowing in the right direction – just like any other industry. Share via linkedin Share via twitter Share via facebook Share via whatsapp Share via print. Funding is another issue for OEMs and suppliers alike, as most digital initiatives require significant investment in terms of new infrastructure or new resources. What’s new is that customer expectations have expanded. 2019-10-17T11:28:00+01:00By Hilmar Dunker, read. This is especially challenging given the wider industry investments already required for CASE (connected, autonomous, shared, and electric vehicles), and considering that, in 2017, OEMs invested more than $231.7 billion in capex and R&D. That’s because of the complexity of the process: the average car has some 30,000 components. The digital transformation of the automotive industry supply chain –an empirical analysis with evidence from Germany and China: Case study contribution to the OECD TIP Digital and Open Innovation project benefits of the digital transformation – or even see them critically – and have less resources available. An analysis from Ultima Media’s automotive analyst, Daniel Harrison. All Digital Supply Chain articles in automotiveIT International. Blume Digital Platform enables supply chain pioneers and visionaries to manage their trading partnerships and get real-time visibility to drive efficiency, customer satisfaction and growth. However, the barriers to implementation have eluded even the most forward thinking of companies. 2019-09-24T06:00:00+01:00By Automotive from Ultima Media. Both tasks are important not only for construction and spare parts, but also for materials. The Automotive Industry Action Group (AIAG) has announced plans to map the entire automotive supply chain. 2019-11-05T11:38:00+00:00By Arjen Bongard. Some raw materials like cobalt or wolframite come from sources that are difficult to monitor, like mines in developing countries. This site uses cookies. New technology, economic uncertainty and changing consumer patterns are making it vital to for automotive companies to adapt and respond quickly to these changing conditions. However, today’s legacy, monolithic IT architectures are no … Deloitte is developing a platform to help companies use artificial intelligence (AI) to solve business challenges. However, today’s legacy, monolithic IT architectures are no longer fit for purpose and are undermining the ability to adapt, innovate, and stay competitive. And in the UK, for example, more than half of these come from elsewhere. Christopher Ludwig. Digitalising the automotive supply chain. Read our policy. But with more EV models in the pipeline, many have the opportunity to grab a larger piece of the pie both for manufacturing and supply chain management. Specifically, within manufacturing and supply chain, the digitalisation opportunities are very significant, typically a 15-30% improvement from overall production efficiency, including labour utilisation, footprint, material cost, and reduction in inventory and machine downtime. A digital foundation As automotive manufacturers look to new technologies to help them manage increasingly complex supply chains, we asked PTC how it is partnering with Microsoft to drive efficiency and optimise operations across the industry. While much focus is put on OEM plans to launch more electric vehicles, a great deal of the technology, value, production and services will come from both existing and emerging suppliers across the value chain. The issue is compounded further when OEMs attempt to compare data submissions from multiple suppliers that have their own formats. Ralf Bretting. In the automotive industry, the transparency offered by distributed ledgers can help ensure that manufacturing, shipping, and suppliers see the same supply chain, making it nearly impossible for counterfeit parts to be inserted into the supply chain. Covid-19: The Long Road Ahead, Automotive Tier Supplier Profit Analysis 2020: Mitigating Margin Compression, Powertrain forecast to 2030: Navigating the road to electrification, Automotive Logistics & Supply Chain Live 2020: Watch on demand, Gain access to premium content, special offers and more…, Gefco providing fleet pre-delivery and transport services for LEVC, Register now: Beyond Brexit – Navigating global trade and customs (Livestream EP.5), Sustainable packaging a priority for the automotive sector, Reports from our global portfolio of conferences. Automotive supply chain faces digital and regulatory disruption. This means that a Digital Supply Chain, and its underlying processes, can be managed holistically and intelligently with the optimal availability of information on performance, requirements and overall dynamics. Join this Livestream Hour episode to get the inside track on coping with Brexit and optimising global trade processes, with exclusive insight from customs experts at Volvo Cars and GEFCO. Bill McDermott is stepping down as CEO of SAP with immediate effect, the company said Thursday. Supply Chain Digital takes a closer look at the use of technology in the automotive industry, following Capgemini ’s report on smart factories. Digital Supply Chain Management 2020 Vision (SAP) Examine this overview of supply chain management digitalization practices for automotive equipment manufacturing and supply, machinery, high tech, and consumer goods. Companies should focus on bite-sizing their digitalisation vision to ensure regular but sustained improvements can be made. Introduction of the chief digital officer role is evidence of board-level understanding of the technologies necessary for the success of a sustainable digital transformation. Read our policy. He spoke to automotiveIT about cost pressures in the automotive sector and the future of ERP and RPA software. Join today to access Automotive Logistics’ wealth of global news, insights, intelligence and to make important connections across the automotive industry. UPS gets approval for drone deliveries in US; will expand use of new technology, Suppliers will face squeeze as OEMs push to meet EU CO2 targets, In interview, Volkswagen brand software boss Christian Senger sees need for more digital capabilities, Greater expectations: brighter days will return for the automotive industry, Early access to reports from our global portfolio of events. Technologies that we have seen being used to push digitalisation and that we see continuing to grow in the coming years include RFID connected devices and sensors, touchscreens, cloud-based IT solutions, predictive analytics, improvements in cyber-security and the ability to manufacture directly from digital files, such as 3D printing. 2019-10-16T14:37:00+01:00By Daniel Harrison. Blume solutions also deliver an efficient supply chain and expedite time to market, minimizing automotive companies’ carbon footprints. 2019-10-07T14:16:00+01:00By Arjen Bongard. automotiveIT International brings you tactical insights and intelligence on the innovations and transformational strategies being driven across the automotive value chain globally. Carmakers and tier suppliers affiliated under the Suppliers Partnership for the Environment (SP) have published guidance on sustainable packaging aimed at reducing waste in the automotive sector and increasing the amount of packaging that can be recycled. The automotive supply chain is complex and constantly moving as the global economy fluctuates. But how should manufacturers use digital technologies, in particular automation, to improve the internal supply chain – from Goods In to Goods Out? Overall digitalisation of the automotive supply chain is being driven by the OEMs and large tier one suppliers that can afford to invest and have the most to gain from the investments. Outside the big players and the new tech and software providers, what a digital transformation means in reality, or even what is possible, is little understood. Welcome to www.automotivelogistics.media. In general, digitalisation opportunities are benefitting the industry throughout the full value chain, from product design, procurement, supply chain and manufacturing, all the way through to sales and marketing. By Marcus Williams 2020-09-28T10:45:00+01:00. Optimize Your Operations With DSCP for the Automotive Industry. Register to join us on Wednesday, January 13 at 9.30 EST | 14.30 GMT | 15.30 CET. In an era of increasing customer demands, ongoing technical disruptions and … No comments. This chapter will provide a proper recipe for automotive supply chain managers on how to bring new technological innovations on a cohesive agenda. 2019-11-12T16:09:00+00:00By Arjen Bongard. Manufacturing . This site uses cookies. Only basic algorithms are used for planning/forecasting and only few data scientists are part of the organization to improve its digital maturity. Definition: Digital-Supply-Chain-Management, Digitales Supply-Chain-Management oder Digitales Lieferkettenmanagement integriert alle Material-, Produkt-, Personen- und Informationsflüsse über verschiedene Logistikkanäle hinweg vom Rohstoff bis zum Endkunden mithilfe von Informations- und Kommunikationstechnologien, um die Effizienz in Bezug auf Kosten, Synergien und Nachhaltigkeit und … Automotive Logistics & Supply Chain North America Live, Automotive Logistics & Supply Chain Live 2020, Global New Vehicle Demand Forecast 2020-2030. 2020-01-10T06:20:00+00:00By Automotive from Ultima Media, The latest report by Automotive from Ultima Media examines the profits and outlook for the top 20 automotive parts suppliers and explores the strategies and solutions they should consider to avoid significant disruption in the 2020s, including the key role they will play in automotive design and R&D, 2020-01-06T12:00:00+00:00By Automotive from Ultima Media, Automotive tier 1 suppliers are facing unprecedented industry transformation in electrification along with economic uncertainty. Use Supply Chain Design Technology to Tackle Automotive Industry Challenges LLamasoft has enabled some of the world’s leading automotive companies to turn common industry challenges into sources of competitive advantage.. 1. Covid crisis has advanced digital connectivity in the automotive supply chain. Register now for free to stay up-to-date with the latest industry developments, trends, and analysis, to find in-depth reports and intelligence and to connect with your peers. Report: Automotive headwinds align into a perfect storm, News, analysis and insight into IT and software's impact on automotive supply chain management and logistics, 2020-01-24T06:23:00+00:00By Daniel Harrison, To do this, they need to run flexible and responsive automotive supply chains. Supply Chain 3.0 describes supply chains with "basic digital components in place." Klaus Straub, CIO of BMW has left the company, the German premium car maker confirmed Thursday. Automotive enterprises have long used information technology to improve productivity and efficiency, reach new markets and optimize supply chains. To do this, they need to run flexible and responsive automotive supply chains. Following our popular Livestream Hour edition focused on digitalisation in supply chain and logistics, Bart Huthwaite, principal for automotive and transportation at EY, rejoins Christopher Ludwig to address audience questions on topics including digital twins, industrial … Empowered consumers everywhere are using social networks to find jobs, restaurants, This makes a fully connected OEM or supply base an almost impossible task today. Although automotive OEMs will face years of stagnant vehicle sales, a stronger recovery thereafter will bring growth back up to long run averages and herald a return to stronger profits. Share on social. 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