Tuesday, 12 August 2014

About Automotive Supply Chain Practice

The world’s largest manufacturing activity is the automotive industry. Amazingly it makes use of 40% of the world’s rubber along with 25% of all the glass and 15% of the steel in the world. The automotive industry also makes use of 40% of the oil output each year. Of all the cars, vans and trucks that are made over 70% of them are sold in the developed world, but there is a potential for new growth in developing countries if the income levels rise.

Right now the supply chain in the automotive industry is undergoing change. Each section of the chain, from the raw materials to the end delivery of the car to the buying customer, is monitored and tied into forecasts.  The demand is watched and varies due to the forecasting. The new supply chain st ill uses forecasting but also on the building of a strategic supply chain.

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