The benefits of a digital supply chain
Any automotive industry business not already digitizing its supply chain will find itself at the back of a long and growing queue for commodities, parts, and other critical high-tech components. Those who were undergoing digitization before these issues, perhaps in response to previous crashes and market shocks, are now better able to adapt and respond to current and future challenges.
Digital supply chains driven by the power of the cloud and data insights, as well as the internet of things, robotics, and remote connectivity will improve business response times. These tactics add flexibility into a supply chain system that could be forced to flex or change again to address future crises.
Players within the supply chain also need to adapt to ensure they meet automotive manufacturers’ net neutral and carbon zero goals, with many firms, including BMW and Mercedes Benz, looking to build carbon neutral value chains. A digital supply chain is critical to meeting the degree of reporting that such a goal requires.
Preparing for the unexpected
Volatility in business is nothing new, but today’s global network of hyper-connected ecommerce seems to make the economic spikes and dives more extreme. Change is also more rapid and, sometimes, comes without warning. That rate of change isn’t likely to slow down soon. Enterprises that recognize that and update their technology will be better equipped to adapt. Modernizing the supply chain is one of the most important steps a company in the automotive industry can take. Advanced solutions, with built-in AI and data science, will help forward-looking companies stay agile.