Supply Chain Design for the Automotive Industry
For automotive suppliers and manufacturers, now is the time to optimize the supply chain and analyze near-term expansion scenarios.
LLamasoft has enabled some of the world’s leading automotive manufacturers to turn common challenges into competitive advantage, from inbound logistics to facility selection and manufacturing to outbound logistics. Automotive supply chain design strategies can clarify decisions related to:
- Aftermarket sourcing
- Supplier lean initiatives
- Commodity cost analysis
- Managing to new demand customer preferences
- Commodity price volatility
- Slow-moving inventory optimization/service parts inventory optimization
- Managing cash to cash cycle times and working capital impacts
- Becoming demand driven
Many Supply Chain Guru features have been designed to support the automotive industry. For example, network optimization can be used to determine distribution center structure and sourcing for the aftermarket business.
Inventory optimization can be used to identify stocking points upstream and downstream in the supply chain to optimize lean initiatives. Enterprise simulation is often used to model commodity cost fluctuations to understand how overall profitability may be affected when key costs change.