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Supply Chain Transformation in the Automotive Sector

Market Analysis

by John Willmott

published on Dec 09, 2022

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Report Overview:

NelsonHall’s analysis of supply chain transformation in the automotive sector consists of 19 pages. This is one of a series of industry sector reports assisting organizations in identifying and quantifying major enterprise requirements and intentions in addressing supply chain transformation

Who is this Report for:

NelsonHall’s “Supply Chain Transformation in the Automotive Sector” report is a survey of supply chain leaders in automotive firms to ascertain the extent and nature of the demand for supply chain transformation as a result of dramatic economic changes and supply chain disruption. In particular, the report identifies supply chain leader requirements from optimized supply chains, the patterns of supply chain transformation initiatives planned, and expectations from vendor involvement. The report is designed for:

  • Vendor marketing, sales, and business managers wishing to understand the nature of the requirement for supply chain transformation in the automotive sector
  • Automotive sector executives interested in understanding supply chain transformation intentions among their peers
  • Financial analysts and investors specializing in the services sector who are looking to understand the impact of the dramatic economic changes arising from mismatches between supply and demand “post-Covid” and exacerbated by Russia’s invasion of Ukraine on the automotive sector’s supply chain transformation strategies.

Scope of this Report:

The report analyzes supply chain transformation requirements and intentions across major automotive firms globally and addresses the following questions:

  • To what extent are automotive firms intending to outsource or insource more of their supply chain operations?
  • What are the key areas of supply chain optimization over the next two years?
  • How long does it take the logistics and supply chain functions within automotive firms to scale their operations up or down by 20%
  • What are the key challenges within automotive sector supply chains?
  • How adequate are existing supply chain processes and business models in the automotive sector to support the future needs of the business?
  • What benefits and characteristics are sought from optimized supply chains in the automotive sector?
  • What supply chain transformation initiatives are planned by automotive firms over the next two years?
  • Which technologies are perceived as key within supply chain transformation by automotive sector supply chain leaders?
  • To what extent will automotive firms involve vendors in their supply chain transformation initiatives, and in which areas will they consider using a managed service?

Key Findings & Highlights:

NelsonHall’s analysis of supply chain transformation in the automotive sector identifies that:

  • Fewer than 50% of supply chain leaders are highly satisfied with their supply chain demand forecasting accuracy, inventory optimization, and level of straight-through processing
  • 35% of automotive enterprises have active or planned supply chain transformation initiatives over the next two years
  • There is a 16% net change in favor of increased supply chain operations outsourcing relative to insourcing.

This report is one of a series of detailed individual sector reports on supply chain transformation published by NelsonHall.

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