Page 20 - ITLN Nov-Dec 2022 For Magzter

Spotlight
Automotive
Logistics

Challenges

continue for

auto SCM but

pain points

easing

Automotive supply chains
have been exposed to a
host of issues: Covid, lack of
semiconductors and limited
supply of other raw materials.
The story, however, is changing.

Jyothi Shankaran

ith around 30,000
individual parts, an
average vehicle is the
W epitome of an efficient
supply chain and any disruption to
the chain leads to a cascading effect
of lost production, revenue and
dissatisfied customers.
Just-In-Time is a major method of
auto production with right inventory
management and product forecasting
gaining prominence, leading to heavy
reliance on effective modes of supply
chains.
So, what are the key challenges for
the auto supply chain?
1) Visibility
2) Resilience
3) Inventory management Air Cargo, cargo-partner Logistics begun in earnest, and will help the
4) Just-In-Time management India. "The vulnerabilities in the industry to handle the disruptions
5) Digitisation & globalisation supply chain were brought to the front more efficiently and with resilience."
“The automotive supply chain has which accelerated the digitisation, A view backed by Athul B Birani,
gone through an epochal shift and technology and visibility quotient. General Manager, KSH Logistics who
so has the complex supply chains The Just-In-Time approach has been says the automotive industry has, over
which remodelled their traditional replaced to manage any disruption. the last few years, witnessed many
approach with radically refashioning The sourcing patterns have become challenges such as the availability of
their linear chains to become more more diverse to overcome geopolitical raw materials or spares in the market.
integrated," says Ruby Abidi, Director, pressures. The journey of change has “Managing the supply chain efficiently
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