How to reduce the production of a growing assortment in automotive manufacturing

Under increasing pressure from customers further down the supply chain, many manufacturers in automotive have been forced to produce an ever-more diverse range of products. To add further complexity, automotive businesses typically exist in highly globalised environments and as a consequence, components and materials sourced from suppliers in Europe, the Far East, and North America are subjected lengthy lead times of up to several months. For automotive manufacturers, the combination of these supply chain challenges, coupled with the rapid rate of growth has presented manufacturers with a catalyst for complexity!

With Slim4, manufacturers can simplify complex processes to minimise their exposure to risk while simultaneously maximising profitability!

Forecasting: anticipate future demand with greater accuracy

Automotive manufacturers depend upon robust demand plans to align their operations with the needs of their customers. However, given the volatile nature of demand coupled with the influence of seasonality and evolving product lifecycles, achieving a reliable forecast is often easier said than done. With the powerful forecasting capability of Slim4, supply chain teams can gain clear visibility over future demand.

Based on the demand history, Slim4 automatically identifies and applies the most appropriate forecasting method. Taking into account both the historic demand profile as well as the latest trends, supply chain teams can develop a robust forecast which can be utilised across the businesses to underpin manufacturing operations.

Bill of materials: optimise your materials requirements

Given that automotive manufacturers have to manage an extensive bill of material for each item they produce, ensuring that the right components are available at the right time is a hugely complex undertaking. Without the right level of visibility and control, operations can quickly become inundated with costly bottlenecks as a result of stock-outs and crippling cash flow issues. Thanks to the BOM functionality of Slim4, automotive manufacturers can ensure that raw material and semi-finished components at the optimal moment in the right quantity.

Ultimately, Slim4 enables manufactures to strike the perfect balance between inventory costs and availability!

S&OP: the right insights to drive collaboration

Even for the best performing manufacturers, there is always a cap on how much they can produce. Thus, determining how best to utilise the available capacity is often a difficult decision for automotive manufacturers. To maximise productivity and satisfy the various expectations from other departments within the business, automotive businesses must synchronise supply chain decisions around the requirements of finance, sales, marketing, and operations teams. With the insights provided by Slim4, automotive manufacturers can execute more effective Sales & Operations Planning Processes (S&OP).

Through providing businesses with accurate forecasts and a clear picture of the current inventory situations, Slim4 better positions manufacture to make more collaborative decisions.  By encompassing the wider business into the decision-making process, supply chain teams can ensure that decisions around product portfolio management, demand planning & sales forecasting, supply planning, inventory & purchase planning are in line with the goals of the organisation.

Optimise your inventory with Slim4

Slim4 actively supports automotive manufacturers. Our software easily integrates with any ERP system, including in-house developed systems. For each level in the supply chain, Slim4 will provide the complete solution for your demand and inventory planning requirement.

We wrote a blog about the Australian Auto Aftermarket Expo. Like to read it?

contact slimstock

Slimstock Australia

Get in touch with our experts