Automotive Supply Chain driven by Strong Data Demand

October 6, 2015 - 16:23

Being able to rely on seamless and consistent data is the way forward for the automotive industry, that has taken pole position in the digital business revolution.

That is one of the conclusions coming out of the Automotive Logistics Global conference last month in Detroit. Many senior supply chain executives are fully aware that their business is digitalizing and they need to shift gear, but very few leaders have the right tools in hand. Therefore, a high percentage of managers feel there not up for the transition yet says Gartner, the independent American information technology research and advisory firm.

"The focus is on optimising profitable delivery of customer value and no longer on the optimisation of costs and the utilisation of assets," states Gartner's Scott Dewicki. "Governance models on areas such as sales and operational planning (SOP) is one of the means by which insights into customer value and demand are shared across functions so that decisions that balance company financial objectives and the delivery of customer value are quickly and consistently made."

Automotive logistics data

Like any other industry, the most important factor when mining the large amount of data available today in the automotive supply chain is making it actionable. Automotive Logistics published some interesting numbers after their global conference in September. In the US alone there are 14 OEMs and 400+ suppliers with millions of transactions being recorded daily, including more than 280,000+ parts movements. Add to that the 250+ LSPs and the 17,500 dealers and you have a rich source of information.

"In the automotive industry there is lots of data available to analyse and draw a perspective," according to Tom Kroswek, senior director of supply chain excellence, at Ryder. Kroswek specifically stresses that the supply of data needed to be seamless and consistent, and it needed to be visualised. Optimising that data with various tools now at the industry's disposal allowed companies to work at a strategic level, such as using inventory analysis at the tier one supplier level to show how to lower inventory cost, explained Kroswek. "Sales and operations planning is where automotive companies are putting in the effort to clear up the data," he added.

The role of Freight Invoice Data

The traditional and basic function of freight audit & payment is ensuring freight invoices are correct: if a forwarder is meant to ship by sea but bills for airfreight, the discrepancy will be flagged up so the shipper or the freight audit company can investigate.

Companies are driven to freight audit by a lack of control, compliance and visibility of their freight and freight spend. Financial regulations are also playing a part: companies must have visibility and control of their financials and, for multinationals, this is exceedingly difficult. Where outsourcing freight audit is a commodity in the United States, European companies are still discovering the true benefits. Moreover, US companies are more focussed on cost savings, whereas in Europe, companies are generally more interested in the data they obtain from the audit.

Shippers with an advanced freight audit solution are able to use the data to monitor carrier performance, identifying any carrier which is regularly late, levies inaccurate invoices, or damages cargo more frequently than other carriers. But carriers benefit, too, because they usually get paid quicker. Besides that, the data serves a ground stone function in transport tender processes and transparent cost-serve reporting on the shippers side.

European Automotive Industry on the rise

The European market represents more than 17% of global sales and is expected to grow by +5% in 2015. 2014 has seen positive growth in the Automotive industry; European vehicle production is growing with new cars sales on the rise. Growing complexity is driving the need for more efficient asset utilisation as supply chain strategies evolve with more localization, globalisation, platform standardisation along with changes in networks and the need for greater operational efficiency. Re-engineering and optimisation of the supply chain and logistics, with a global mindset is essential to the longer term growth strategies.

More ControlPay - Europe's largest Freight Audit Provider Content

Visit ControlPay's hub for daily insight in Supply Chain optimization, Freight Audit & TMS.

ControlPay - Freight Audit Advantages
ControlPay - Download our eBook- Advanced Freight Audit
ControlPay - Business Intelligence Platform
ControlPay - Freight Audit & TMS services
ControlPay - Why ControlPay is different

This website uses cookies

ControlPay and our partners place cookies on this web site and use non-sensitive information from your device in order to improve our products and personalize ads and other website contents. Because we respect your right to privacy you can choose not to allow some types of cookies. However, blocking some types of cookies may impact your experience on the site and the services we are able to offer. For more information about cookies, please refer to the below content:

You can make a choice here and change your preferences at any time in our Privacy Policy on this website.

Decline All Accept
Necessary cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can change your browser settings to disable these cookies, but it may affect your ability to access and use the site. These cookies do not store any personally identifiable information.

Used cookie

User experience
Description
Stores authorization of users who log in admin panel
Host
controlpay.com
Duration
Expires in one day
Type
http
Analytics cookies

These cookies allow us to count visits and traffic sources, so we can measure and improve the performance of our site. They help us know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies, we will not know when you have visited our site.

Used cookie

Google Analytics
Description
Google Analytics cookie which is used to identify stream of visitors to our website
Host
controlpay.com
Duration
Expires after 2 years
Type
http
Marketing cookies

Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.

Used cookie

perk0mean.com
Description
Tracks the individual sessions on the website, allowing the website to compile statistical data from multiple visits. This data can also be used to create leads for marketing purposes
Host
secure.perk0mean.com
Duration
Expires after 3517 days
Type
http
youtube.com
Description
Youtube cookie
Host
youtube.com
Duration
Expires after 1 year
Type
http
This website uses cookies

We use cookies to optimize the website functionality and give you the best possible experience. You can make your choice here and change your preferences or decline all cookies at any time in our Privacy Policy on this website.