Let’s quickly examine the idea of instant replay in sports in order to fully comprehend the all-encompassing advantages of real-time information in today’s automotive supply chain. Instead of waiting until the game is over to examine the standard game footage, instant replay enables officials and spectators to review any play immediately after it has occurred. The ability to instantaneously evaluate every play of the game as it happens aids in determining if the call was accurate, which team may have broken the rules, and whether either team needs to be penalised for probable infractions. As a consequence, the rules are more accurately enforced, it is easier to understand each team’s strategy or strengths and weaknesses, and viewers can watch with confidence how the game is being called by the officials, which makes for a more pleasurable viewing experience for everyone.
The same is true for the automotive supply chain’s real-time information sourcing, particularly with regard to technologies and ideas like Big Data, cloud computing, and Industry 4.0. OEMs must be more flexible than ever before to respond to these changes and maintain smooth, effective workflows in today’s global supply chain, where regulations or restrictions on demand planning, production programmes, transportation management, and customer relations can change quickly and without much notice.
In previous postings, we’ve covered the need for end-to-end visibility (E2E) at every step along the value chain to make sure businesses are running as efficiently as possible. Manufacturers may add value by utilising E2E visibility and transparency by having the capacity to monitor and evaluate data as it is being collected. But which specific advantages are there? What competitive benefits may OEMs anticipate from using real-time data sources and information?
Here are four advantages of real-time data in the current automotive supply chain:
Understanding of Demand
OEMs can see the most recent demands from clients across the globe thanks to real-time information, which also enables them to prepare for or address any possible snags in the supply chain. Real-time windows into overall demand can also assist businesses in seeing patterns or shifts in the demand for component components so that they can modify production plans or facility allocations before these shifts have a substantial impact on productivity. By using real-time information, an OEM in Europe, for instance, could identify a downward trend in the demand for parts from a client in Mexico and reallocate materials and resources to suit that trend rather than continuing production at the current rate at the risk of severe overages in inventory or supply.
More capacity for planning
Similar to demand insight, real-time information promotes more precise, thorough planning abilities in the short- and medium-term. Planners and managers may utilise current demand insights to develop better production plans and projects based on current trend lines in the near future since they can be examined and studied as they develop. Better overall planning techniques have an impact on all supply stream contact points, from transportation management to customer interactions, as we’ve addressed in prior posts. As a result, one of the most significant competitive advantages offered by real-time information platforms is improved planning capacity.
Potential for Better Reporting and Data Analysis
The days when planners and managers had to wait until the end of the month or quarter to evaluate data essential to a manufacturer’s production and efficiency are long gone thanks to real-time information collecting. Instead, real-time data enables managers and planners to assess the most recent information as it becomes available and disseminate this information in a cross-organizational manner to encourage greater communication and cooperation. The usage of integrated, intelligent solutions and platforms also contributes to providing real-time information since it does away with the need for spreadsheets and other manual data input and management techniques.
Customer Experience Is Improved
It makes sense that improved customer relations and satisfaction will result if a manufacturer is able to assess the current state of their supply situation as it develops, make adjustments to strategies and planning platforms at the moment, and react to sudden changes in the supply stream at a moment’s notice. Real-time information enables businesses to develop more precise production and delivery schedules, which leads to a better outcome when it comes to attracting and keeping consumers.
In the modern-day, try to picture a sporting game without the option of an instant replay. Officials would certainly struggle to make the correct calls, which would slow down the game. Inaccurate decisions on the field may also substantially change how games turned out. OEMs without real-time information capabilities are in a similar situation. Without real-time information sources, businesses would have to deal with more productivity-related problems like bottlenecks and interruptions, which might spell their demise in the competitive, global market of today.