
It is imperative for automotive Original Equipment Manufacturers (OEMs) and suppliers to work in tandem, so they can streamline operations and meet the rapidly changing requirements of today’s fast-paced market.
How are suppliers working with OEMs?
Adopting lean principles and training employees
It is what is known as embracing lean principles – by adopting continuous improvement practices, value stream mapping, and standardized work, companies can considerably minimize waste, enhance product quality and boost efficiency. Suppliers are continuously analyzing and reviewing processes to identify areas of waste and opportunities for improvement.
Ongoing training is also being provided to staff to ensure they have the necessary skills and knowledge required to implement and sustain lean principles. Why not then equip staff with the latest industry insights, trends and technologies?
In order to apply skills than can improve business and employees performance, you can choose or develop your own coaching program.
Imagine if they are encouraged to take on new challenges and provide opportunities for cross-functional and international exposure. Thus, by creating a workforce to manage the complexities of the supply chain, while driving growth and innovation.
Optimizing inventory management
Effective inventory management is especially important for time-critical deliveries in the automotive industry. Automotive suppliers are using the latest technologies to manage inventory levels more efficiently and ensure that products are being delivered on time. By developing dedicated and streamlined supply chain management solutions, they have reduced lead times, improved inventory accuracy, and minimized costs, ultimately increasing customer satisfaction. It has given suppliers a competitive advantage in the market.

The automotive industry faces a growing need from consumers, regulators, and other stakeholders to adopt environmentally friendly practices as well. By optimizing inventory levels and reducing unnecessary production, suppliers have been able to minimize carbon emissions as well. Being sustainable ensures that suppliers can mitigate risks associated with environmental and social issues.
Digitization matters
This aspect has totally transformed the automotive supply chain by enabling better collaboration and visibility. You can leverage the state of the art technologies and automate supply chain processes. Some examples like the Internet of Things (IoT), artificial intelligence (AI), and blockchain.
Suppliers can now provide OEMs with the necessary tools to better track their products and raw materials, gain real-time insights into their operations, and improve efficiency. Since suppliers are able to detect bottlenecks immediately, they take corrective action in order to address those problems. Suppliers can ensure that they deliver intact time-sensitive materials within the designated time frame by using digitally integrated solutions.
They can address issues such as volatility in schedules. For instance, suppliers can configure how to restructure shipping schedules. For example if they find out on Sunday that they are unable to ship on the following day, due to an assembly plant closure.
Develop strong networking
Effective network management is crucial for the success of automotive OEMs and suppliers. Solid network requires to bring down expenses, improve quality, and respond to market demands.. This involves collaboration, communication, and trust, where both parties work together to identify and address issues that arise. Proper networking management involved setting clear expectations and mutually agreed-upon goals. Establishing a shared understanding ensures that both parties work towards achieving them collaboratively. Regular meetings, joint problem-solving and shared performance metrics can help create mutually beneficial and sustainable partnerships that help automotive suppliers and OEMs stay competitive in a rapidly evolving market.

The automotive supply chain is indeed complex and dynamic, as it involves suppliers, manufacturers, distributors, and retailers, whose processes are integral to each other to deliver quality products to clients. There will be many challenges such as new demand and forecasting models, along with flexibility and adaptability in the supply chain network, but if automotive suppliers can successfully collaborate with OEMs, it is possible to overcome these hurdles.