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Modern Manufacturing

Blurred Lines for the Automotive Supplier

John Klinke
Director, Oracle Industry Strategy Group

Guest Author: Pat Mariles, Senior Director, Industry Strategy Group, Oracle.

Automotive suppliers are facing unprecedented challenges in today’s evolving automotive industry.  Their lines of business are being blurred as they realize they need to find new innovative approaches, embrace new business models and become more agile as they fight for survival in this changing marketplace.  Suppliers realize they need to work more closely with automotive OEMs and collaborate on automobile features and capabilities. Their boundaries are being pushed with a shift from supplier innovation that has historically been centered on product and manufacturing (quality, price, on-time delivery) to now working to better understand the automotive end customer – the driver.  

This shift in focus for automotive suppliers to the end customer means collaborating with automotive OEMs on major new functionality such as the rollout of advanced technologies (e.g. voice command interfaces, driver analytics), mobile access (e.g. access to car features and data via mobile phones), and autonomous driving.

As a result, automotive suppliers will need to work hand in hand with the OEM’s design and development process, adopting new business models that enable them to develop innovative products that deliver a more enriched driver experience.  Of course, such changes affect the supply chain.  Improving real-time operational efficiencies across the extended supply chain in the front and back office are imperative.  By embracing advanced technologies such as artificial intelligence (AI), blockchain, and IoT, suppliers are better equipped to be optimized, proactive and productive as they adopt Industry 4.0 capabilities.

One of the many Oracle customers that is embracing Industry 4.0 is Titan International. Titan, a leading wheel manufacturer, is changing their operating model and becoming a more innovative manufacturer. By deploying Oracle IoT, ERP, and SCM, they have transformed their daily operations to have access to real-time inventory availability and accuracy.  Such real time inventory accessibility has a profound impact throughout the manufacturing process.   Titan now has insight into their shop floor analytics. They have installed digital workflows and their shipping processes are more efficient.  Overall, they have achieved an increase in collaboration, transparency and coordination in all facets of their operations.  As a result, Titan is innovating more and beating the competition.  Read this Titan success story for more insight into their move to modern applications in the cloud. 

The bottom line is automotive suppliers need to quickly adapt to today’s evolving automotive market in order to survive.  To do this, they must continually strive for greater agility and innovation with a focus on working more closely with automotive OEMs to meet the needs of the end customer – the driver.

Oracle is your technology partner in this journey. We have a comprehensive set of modern cloud solutions for the automotive industry that enable you to adopt Industry 4.0 practices and processes in your company to become a more nimble supplier for the quickly evolving automotive market.