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Conclusion of the 9th Industry Forum Automotive Logistics

The forum opened turbulently with some news about Volkswagen in Wolfsburg regarding a supposed shutdown of their production line due to supply shortages. However that was a perfect introduction for a day with discussions all around the core topic logistics and its challenges in international production networks. In order to fulfill the worldwide rising demand, suppliers have to have several subsidiaries. To keep a high degree of synergies, the procurement process of specific materials for the company is bundled in one subsidiary, e.g. the country with the cheapest raw material prices. However the materials then have to be shipped to all other subsidiaries across the globe. That is one of the reasons why the complexity of supply chains increases constantly. Besides the shipping there are 3PL and 4PL logistic providers which took over some of the value adding activities from the automobile manufacturers, causing holes in the supply chain structure of the group and a lack in transparency. 

Many car manufacturers and their suppliers hence see a challenge to increase the transparency in their supply chain. The common idea reaches from the necessity of a group cost estimate throughout the whole supply chain network, which is one of the core competencies of IM&C, to standard software enabling supply chain controlling for the group and performance management based on group KPIs. Soon there will be a trend towards competing supply chain networks away from the competition of companies directly. Only the ones creating the highest degree of synergies and optimization (e.g. from a tax point of view) in the supply chain network will be successful in the long run. 

We believe that our standard software for supply chain controlling (GCP-Engine)the automotive industry the best IT support available toincrease the transparency in the supply chain and to optimize the overall performance. Finally, it must be noted that there are several serious problems in the consolidated calculation of value chains and this has also been recognized as a challenge by the industry. The GCP-Engine of IM&C is a unique approach to master this challenge.

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German E3 magazine

Global Connect Award

Success-Story

TRW Automotive GmbH:
Transparency in Global Value Chains (German)

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