automotive, automotive supply chain, auto supply chain prophets, podcast, supply chain processes

Have you heard about our new podcast? Together with Quistem Founder and President Cathy Fisher, the two of us are co-hosting “Auto Supply Chain Prophets,” which is the first podcast dedicated solely to global automotive supply chain issues. The podcast will feature automotive industry experts discussing their thoughts on key industry issues and how to prepare for the future.

Guest hosted and produced by Gravitas Detroit Founder and President, Jan Griffiths, a former key supply chain executive in the industry, the podcast is available on the Auto Supply Chain Prophets website or any major podcast platform.

At the heart of our visions as “supply chain prophets” are 24 essential supply chain processes for improvement, developed using our over 70 years of combined automotive manufacturing, quality and supply chain expertise. Our goal is to help automotive suppliers and OEMs discover hidden profits within their supply chains. At the end of each episode, our guests will discuss one immediate actionable insight for improving the supply chain.

Becoming Supply Chain Focused

It’s our belief that automotive manufacturers can be more productive and successful by placing a greater focus on the supply chain – we’ve identified 24 essential supply chain processes that can turn the supply chain into a greater competitive advantage. Manufacturers should view the supply chain as a profit driver.

In our first podcast episode, Can the Prophets Really See the Future, we talked about how supply chain management has evolved and how the pandemic has spurred business leaders to review their supply chain management systems.

We know that money is made in the automotive supply chain when we get the right product to the right place, and in the right quantity at the right time. It’s about material movement, sourcing, physical logistics and materials management – processes which are frequently overlooked and underfunded. Larger organizations typically outsource their supply chain processes, which means less managerial oversight in these important areas. Add to this the impacts of the Great Resignation meaning a loss of critical supply chain knowledge, and the fact that many new hires coming into the industry lack a full, in-depth understanding of essential supply chain processes.

Organizations throughout the automotive supply chain must look at the supply chain strategically, moving beyond command and control and into a transparent and digitally transformed system. That’s where our 24 essential supply chain processes come in.

24 Essential Supply Chain Processes

In Part 1 of our recent eBook series, Delivering on the Promise of Delivery, we explore the impacts and root causes of poor supply chain delivery performance. In Part 2, we present our roadmap for improving supply chain delivery using 24 essential supply chain processes, and the five business areas in which they fall.

automotive supply chain, supply chain processes

We evaluated the intersection of AIAG/Odette’s MMOG/LE and IATF 16949 to identify these 24 essential processes that will improve the performance of the automotive supply chain.  We vetted them with over 20 automotive manufacturers, including OEMs and Tier 1 and 2 suppliers, plus several automotive industry associations. By leveraging these processes, organizations can gain better control of supply chain performance by monitoring supply chain performance indicators such as on-time delivery and premium freight instances.

OEMs, suppliers and related stakeholders, including industry associations and technical colleges/universities, must consider:

  1. Identifying essential automotive supply chain processes 
  2. Assessing current supply chain competencies
  3. Creating industry standards/guidelines and training to develop supply chain competencies
  4. Promoting organizational adoption of a supply chain-focused operating model
  5. Leveraging advanced technologies to automate and integrate supply chain processes for improved supplier performance

Final Thoughts

The bottom line is this: automotive manufacturers must break the silos between quality and materials/logistics and develop robust supply chain processes which integrate seamlessly into their business systems. Read more about our roadmap for improving supply chain delivery and the 24 essential automotive supply chain processes in our Delivering on the Promise of Delivery eBook series.

This article was co-written by Cathy Fisher, founder and president of Quistem, LLC.

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