Supply Chain Design in Automotive Industry

Supply Chain design

Supply Chain design plays a very major role in automotive industry as it is an
extensive process that consists of elements of production as per different
forecasting techniques. In such industries, investment is very high as well as fixed.
In automotive industry, there is a high variety of models and standardization of
components. It refers to the scenario where models can easily adjust according to
the preferences of the customers and new models can develop for satisfying the
needs of the customers. It has three parts-
1. Inbound Logistics- It is necessary to dedicate time as well as resources in
order to optimize inbound logistics. In order to reduce the cost and improve
services, it is very important to control inbound transportation network and
assess alternate network designs. It also includes-
 Facility Selection- Modelling technology should be used for making
decisions regarding supplier and manufacturing locations as it creates
an impact on the whole supply chain.
 Transportation route- It is necessary to optimize transportation route
for reducing the cost and making it more efficient. There are various
transportation routes and have their different advantages and
disadvantages. So it is important to find out the best one out of them
(HITT, 2011).
 Product- To create a flow-path of a product, an organization needs
modelling of all alternative flows and use smart algorithms in order to
determine best choices (Yahiaoui, Fedouaki and Mouchtachi, 2018).
2. Facility and Manufacturing- Demands for automobile products keeps on
shifting to new regions, new quantities, suppliers as well as cost- structure
changes. It includes-
 Production footprint- Modeling of the production footprint and
assessing different scenarios help an organization in creating balance
between the current capacity and investment need to add additional
production.
 Inventory optimization-Inventory optimization refers to the adequate
stocking level and proper ordering patter after analysis all the demand
patterns of different markets.