Managing Automotive Supply Chains in a Global Economy
by Craig Hodgson, on July 29, 2016
How can manufacturers better manage their global supply chains?
It's a global economy, and it isn't easy to find a car assembled with parts that all originated in the same country. For instance, many cars produced by American manufacturers contain components that were made all over North America. So do many cars produced by Japanese manufacturers and sold in the North American market.
"Globalized manufacturing provides opportunities to be more cost-effective and efficient with their sourcing."
For the manufacturers themselves, globalized manufacturing provides opportunities to be more cost-effective and efficient with their sourcing. But it also highlights the need for better supply chain management. When key components are being assembled hundreds of miles apart from each other, an unmanaged supply chain failure can quickly escalate into a company-wide disaster.
A recent article on Global Manufacturing offers some tips for firms looking to better manage their supplies:
- Identify your most important suppliers: Where are the points in your supply chain where there is the greatest chance of something going wrong? Which errors might lead to the most damaging possible outcomes? In a vast chain, it's important to know what to keep an eye on.
- Reduce risks: As the news source notes, it isn't possible to completely eliminate risk from a supply chain. But it can be mitigated. One way to do so is by increasing regular communication with suppliers.
- Take advantage of technology: Traceability technology is key for improving efficiency and risk management along a supply chain. Specifically, labeling technology can make it much easier to track components from their origins. But these labels need to be accurate.
For more on automotive labeling download our on demand webinar EDI, Barcode Labeling and the Holilstic Automotive Supply Chain Sreategy.