The Automotive Industry has become very proactive in reconfiguring its supply chain in line with fast-changing markets and demands, however, it’s likely that the shift towards electrification is going to be its largest disruption yet.
Though this may present a challenge for more traditional automotive companies, the drive for electrification is opening new opportunities for growth and change throughout the supply chain. In many cases, companies are going to be pushed to adapt and embrace these changes in order to survive.
Elimination of Traditional Elements
We will see the gradual elimination of traditional elements such as the combustion engine and the gearbox. In order to replace these components, there is and will continue to be an increasing demand for new components including the battery pack, electric motor, and transmission.
Adaptation and Repurposing
As well as working to replace old components, there are also opportunities for adaptation of various components within the supply chain. This may include the adaptation and repurposing of components such as brakes, steering systems and potentially even air-conditioning systems.
Partner to Progress
One of the biggest challenges facing the Automotive Supply Chain is that there is no ‘one size fits all’ solution for electrification. It’s a new area for everyone, and partnerships are becoming more and more common. Recently, JLR has announced that they will join forces with BMW to collaborate and develop electrification technology, it is likely that we will see more partnerships like this forming over the coming months and years.
Ownership to Usership
This is more so down to the consumer as opposed to the manufacturing of Electric Vehicles however, it is important to note that this will also have a huge impact across the Automotive Value Chain, with fewer people buying and more people taking advantage of leases or borrowing schemes.
In summary, the impact of electrification on the Automotive Supply Chain is going to be significant but also presents numerous opportunities for growth and reinvention. For companies to survive throughout this shift, it is of paramount importance that they embrace this change and begin their transition to a more digital and connected future.
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Our readiness assessment is built from our tried and tested 3DEXPERIENCE Assessment, where we review your current environment and identify business-wide initiatives for growth and improvement for your business. We analyse your business processes from installation and support services to customer-specific requirements, to help identify the solutions that will help you achieve your business objectives.
With industry demands including automation, electrification, connectivity, and shared vehicles your OEMs are demanding more of you as their supplier network. For over 20 years we have serviced global OEMs supply chains including JLR, Ford, Nissan, Rolls Royce, to name a few. We have applied our knowledge around supply chains and the Dassault Systèmes 3DEXPERIENCE to recreate our automated assessment to help you plan how to effectively but efficiently you can work with your OEMs.
Our readiness assessment analyses the impacts of your People, Technology, and Processes and as a result of this, we can develop a proposed roadmap of changes to help enable successful change and delivery against OEM requirements. Through the assessment process, we will also help develop a cost justification for any changes and work with you on an agile plan for your future in serving your OEMs.