Advantages Of Supply Chain Management In Automotive Industry

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INTRODUCTION: The automotive industry is “industry of industries” because it combines almost all industries into manufacturing with upstream and downstream industries. It is assumed that automotive industry contributes much to the economy of a country. Recent technologies have enabled replacing mechanical assemblies with electronics. This paper tells that there is a huge competition in automotive industry globally as well as within India. India, China and Brazil are emerging markets where there is increasing demand and enough local manufacturing. This industry should concentrate on their supply chain management to gain competitive advantages over others in the industry because they have all other means to compete are of not much advantage. So to compete globally …show more content…

• Outsourcing by the original equipment manufacturers has increased the responsibility of the vendors in assembly and incorporation of latest information technologies.
• If information technology is implemented properly it will result in better inventory management, use of big data can produce better forecast results, the use enterprise resource packages like Customer Relationship Management and SAP can enhance the performance of supply chain management.
• The complexity can be overcome by splitting the supply chain network into sub supply chains which can increase the visibility of each sub supply chain.
• By splitting into supply chains can be helpful in implementing lean techniques which in turn increases agility i.e. ease of adaption.
• By implementing smarter supply chains which is used in creating good relationship among the suppliers, using the best of the technology to increase visibility , enhances the agility by the use of lean technologies and can be used to proper decision making will enable the Indian automotive Industry to gain competitive advantage over

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