Many automotive suppliers are heavily invested in legacy point solutions to support activities across the enterprise. While these point solutions usually work well at performing a specific function, they often create silos that impede coordination. Activities like a simple quote revision or routine APQP corrective action can be cumbersome and error-prone. These islands of data create a range of problems that can be broadly grouped across three categories: data, process, and people.
Practical PLM Blog
The tiered automotive supply chain is one of the more challenging business environments in industry today. Suppliers face mounting pressure from OEMs, competitors, and regulators alike. Increasing product complexity, shorter program timeframes, and supply chain complexity are making it difficult to react to the latest consumer tastes and OEM requirements. These dynamics are squeezing margins tighter than ever and leave little room for error. In a recent survey (Figure 1), 65 tier one and two suppliers were asked to rank 12 activities based on their importance for helping the them stay competitive in 2017 and onward...Read More
In Part 1 of this two-part series, we began by discussing how a perfect storm for inefficiencies and risk has been brewing – especially for automotive suppliers. We identified the quoting phase and its related processes and activities as a key source of this risk as visualized by the Risk Quadrant graphic below. To overcome these challenges, we suggested that a product lifecycle management (PLM) platform be used. In the second part of this series, we’ll explore the value a PLM platform can provide and the specific operational activities that PLM facilitates.Read More
Automotive suppliers face a combination of market forces that have created a unique business environment – an environment where uncertainty and unmitigated risk are eroding profit margins. Why are other manufactures immune and what’s so different about automotive suppliers? High volume production combined with product and tooling complexity create a perfect storm for uncertainty and risk. This article deconstructs these risk factors and explores strategies and tools to calm the storm.Read More