The urgency for collaborative supply chain networks increases for automotive manufacturers

Automotive manufacturers and their suppliers continue to increase their collaboration in various ways, whether this be through robotic process automation (RPA), data collection and exchange, or other methods that provide insights for scalability. With true, multi-enterprise collaboration, there are cross-training opportunities to convey customer needs and preferences for product innovation, giving manufacturers the ability to make rapid adjustments in real time. Collaborative behavior makes this happen, and it all starts with transparency.

However, building real trust, collaboration, and transparency goes beyond using a specific technology or workflow. At its core, this is about changing the culture of automotive OEMs and throughout their suppliers at every tier. Automotive companies who are true leaders in the industry consider the health of the entire supply network, not just their immediate interests. Making this change—as with almost all substantive transformations—requires change be from the top executive level down.

With network collaboration, it’s important to review how data is collected, measured, and utilized. Organizations must eliminate silos, streamline IT applications, and give all stakeholders within their four walls access to critical data. They also need to look for ways external partners can enhance visibility between parties while assuring it won’t be misused. Only then will everyone involved trust each other enough to build effective collaboration.

It may seem easy to review things like order accuracy, freight costs, late or missed orders, etc., but that’s entirely dependent on having quality data available. Unfortunately, without an established level of collaboration and trust between partners, it’s difficult to ensure that quality exists.

However, when enterprises collaborate through a network platform or digital supply network, the benefits to tier-2 and tier-3 partners show up in hard cost savings, which in turn benefit customers and OEMs through value and customer satisfaction—thereby creating a virtuous cycle for all parties involved, as well as a healthy, resilient supply chain.

To learn more about building supply chain resiliency, check out the Deloitte point-of-view here.

To learn more about how Infor supports the automotive industry, view the industry page here.

To learn more about Infor’s supply chain collaboration network, view the solution page here.