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Five Ways Automotive Industry Can Help Change Direction of Your Industrial Supply Chain

Best practices like just-in-time production, lean manufacturing and lean supply chain management have helped the world’s premier automotive companies eliminate waste of all kinds: overproduction, waiting, unnecessary parts/product movements and processing, excess inventory, worker motions and defects.

Five Ways Automotive Industry Can Help Change Direction of Your Industrial Supply Chain

While durable goods (industrial manufacturing) supply chains differ from automotive supply chains in many ways, some of the best practices that have proven successful for automotive supply chains are, in fact, transferable. Here are five automotive best practices that deliver results for industrial manufacturing supply chains: 

1. Improve planning and visibility by creating standard requirements for suppliers: cover ship and pack requirements, container labeling, packaging adherence, and shipping data updates.

2. Have a “plan for every part”: align demand planning and forecasting with logistics plans for suppliers and parts, linking demand, cost and transit time to the production facility based on a bill of materials and line back philosophy.

3. Optimize routing: share your demand schedule with the team responsible for planning and optimizing routes. Consolidate shipments with other suppliers, plants or even competitors.

4. Get visibility into inbound shipments: know the status and delivery date of every shipment so that you can make more informed decisions and carry less “safety stock.”

5. Manage inbound transportation by exception: use demand data to position inventory effectively, plan manufacturing capacity and execute shipment orders. With real-time visibility, you can create smart and effective contingency plans for unplanned events. 

These five practices help make automotive supply chains some of the best in the world – and can help industrial manufacturing supply chains lower costs and improve customer service, too. Could you drive a smarter industrial manufacturing supply chain with automotive best practices?

To learn more, read the full article here.

Source: Ryder

Keywords: 3PL, logistics services, inventory management, logistics management, transportation management, supply chain management, automotive industry logistics, logistics & supply chain

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