The automotive industry is not only one of the world’s most important economic sectors by revenue, it also takes up a leading role in terms of quality expectations, product variety and process complexity. Driven by globalization and increasing customer requirements, car manufacturers are forced to offer a large range of vehicle models and options. Just for example, one single model series of a premium German automobile brand can reach 1017 possible automobile variations! The enormous product variety-induced complexity and the pressure of tough international competition make it hard to ensure efficient logistics. Automotive supply chains are among the most complex in the world, with each vehicle containing more than 20,000 parts originating from thousands of different suppliers. Add technology into the mix, and you get an industry undergoing significant transformation in a variety of ways.

Challenges in Automotive Supply Chain:
  • Huge surge in the customer demand, especially during festive/special days
  • Inventory Management issues by regular distributors
  • Cross-border government policies, taxes and economic barriers
  • Reverse logistics/Returns
  • Warranties
  • Micro-markets/Third and Fourth tier reach
  • Cash collection