The Automotive Supply Chain Vulnerability Hiding in Plain Sight

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The automotive supply chain contains a constraint that can cause serious disruption for OEMs and suppliers. Supplier program capacity – the total number of new programs a supplier can launch – is limited by the human capital required to support programs with existing processes and technology. Each launch involves program teams drawn from across the supplier organization who use methods that have remained mostly unchanged for decades. Electrification is driving an escalation in program volume. To alleviate the program capacity constraint, OEMs and suppliers must confront Automotive Program Management — the processes used to design and launch most component part production – to expand supply chain capacity and scale to meet the era of electrification.

Independent research by Lifecycle Insights shows that:

• 91% of suppliers are actively pursuing improvements in program management
• 65% of program managers are communicating hourly or daily with customers
• 65% of program managers are sending files hourly or daily to program stakeholders
• 59% still track using printed paper forms, and 74% still use spreadsheet software
• More than 50% report errors being missed, lack of consistent processes, and excessive non-value-added activities.

Featuring:

Dave Opsahl
CEO of Actify