Top Indian auto companies are driving supply chain success with Blue Yonder

Top Indian auto companies are driving supply chain success with Blue Yonder [ad_1]

For over a century, the worldwide automotive business has been centered across the inside combustion engine. All that’s altering, with huge repercussions for the end-to-end supply chain. According to McKinsey, by 2030, about 95% of all new automobiles offered globally might be related
1, 50% of passenger automobiles might be extremely autonomous and 15% being totally autonomous
2, and electrical automobiles gross sales will vary from 10-50%

While automakers scramble to regulate to digitalization, there may be excellent news: the general dimension of the automotive market is growing from $3.6 trillion to $7.2 trillion
4. Clearly, automotive companies face large alternatives, but additionally important threat publicity, as is clear by the current worldwide chip scarcity.

“The hard lines between industry sub-verticals such as automotive, hi-tech, and consumer electronics are blurring as the sectors gravitate towards each other in a phenomenon called ‘Industry Morphing.’ As digitalization takes hold, the winners will be those enterprises that operate with the speed, agility and responsiveness of technology companies, integrating best practices from both high-tech and consumer industries,” says Salim Shaikh, Vice President of Automotive Strategy, Blue Yonder, a worldwide supply chain supplier.

It’s necessary to acknowledge that digitalization impacts not simply automakers, however the business’s advanced ecosystem of sellers, unique gear producers (OEMs), a number of tiers of suppliers, third-party logistics suppliers, and electronics suppliers. Any disruption, in any node, sends a bullwhip impact by way of your entire community.

How can automakers acknowledge and reply to disruptions? How can they set up the acute pace and resilience of a high-tech firm of their end-to-end supply chains?

Three essential capabilities for automakers

Blue Yonder may also help. A confirmed supply chain chief with greater than 3,000 clients ― together with the world’s main automakers — Blue Yonder provides three essential capabilities automakers want immediately:

  • Scenario planning – Resilience means the flexibility to rapidly reconfigure world and regional supply chain flows, flexibly supply elements from varied suppliers, and always make trade-offs based mostly on value, service and threat evaluation. Blue Yonder’s LuminateTM Planning options assist producers develop ‘what-if’ simulations and contingency plans based mostly on demand realization and supply disruption situations. Powered by synthetic intelligence, Blue Yonder’s agile, correct situation modeling permits organizations to know the affect of selections on service ranges, money circulation, revenue and loss, and the stability sheet.
  • End-to-end supply chain visibility. No matter how advanced the supply chain, Blue Yonder’s Luminate Control Tower scans your entire ecosystem to supply AI-powered visibility and real-time responsiveness. In the occasion of a missed half supply, the management tower weighs such choices as expediting a substitute from the unique provider or transport from an alternate supply. It evaluates the pace of various carriers and routes. It autonomously permits the optimum final result, based mostly on value, customer support ranges, and income and margin.
  • Aftermarket omni-channel achievement. Service-level necessities range tremendously amongst channels, together with sellers, distributors, e-commerce, and fleet. This means orchestrating personalised, experience-aware supply chains throughout a posh construction of merchandise, assemblies, components households, and SKUs. Blue Yonder’s AI and automation capabilities dynamically optimize service and monetary outcomes throughout all segments.

Real outcomes for automotive leaders

Here are the current outcomes Blue Yonder has achieved for automotive companies:

  • Mahindra & Mahindra depends on Blue Yonder’s dynamic segmentation functionality to optimize its spare components inventories. Outcomes embrace a ten% enhance in service ranges, a 40% discount in response occasions, and a ten% enhance in forecast accuracy, alongside with a ten% to15% discount in stock days.
  • CEAT Tyres has digitally remodeled its supply chain with Blue Yonder to attain correct stock visibility, knowledge transparency, stock optimization and efficiency, guaranteeing that the suitable merchandise get to the suitable locations on the proper occasions.
  • Escorts Group carried out Blue Yonder’s options to unlock working capital from inventories in its agricultural equipment enterprise. With an agile supply chain that may predict disruptions and proactively pivot its response, Escorts now has end-to-end visibility into its planning and might pivot to satisfy any challenges.

Embrace digitalization

Along with alternatives, the digitalization of the automotive business has introduced challenges. Human planners aren’t able to navigating this advanced panorama alone. Blue Yonder’s options may also help, by making use of AI, knowledge science and analytics to autonomously make optimum selections that stability income and repair ― regardless of how digital the business turns into.

Read Blue Yonder named a “Leader” in 2021 Gartner Magic Quadrant for Supply chain planning options


1 McKinsey,
“Unlocking the full life-cycle value from connected-car data,” Feb. 11, 2021

2 McKinsey,
“Automotive revolution – perspective towards 2030,” January 2016

3 McKinsey,
“Disruptive trends that will transform the auto industry,” Jan. 1, 2016

4 McKinsey,
“The future of mobility is at our doorstep,” Dec. 19, 2019

The writer is Country Head- India, Blue Yonder India Pvt Ltd.


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