Globalization making major impact on automotive industry

The findings of this study are based upon interviews with automotive manufacturers and suppliers in the U.S., Europe, and Asia

By ·

IDC Manufacturing Insights has announced the availability of a new report, The Assembly Plant of the Future—Restructuring Global Manufacturing to Meet the Challenges of the Global Economy, which discusses the challenges of global manufacturing and how forward-looking automakers are restructuring both design and manufacturing strategies to improve efficiency and remain competitive.

The findings of this study are based upon interviews with automotive manufacturers and suppliers in the U.S., Europe, and Asia.

According to the report, the automotive industry is undergoing dramatic changes as it copes with new economic realities, seeks to meet shifting demands in consumer preferences, and incorporates new technologies to improve energy efficiency, safety, and comfort.

“The manufacturing of automotives today has not fundamentally changed since 1913 when Henry Ford revolutionized the assembly process by creating the moving assembly line,” said Joe Barkai, practice director, Product Lifecycle Strategies at IDC Manufacturing Insights. “It is clear, based on our research, the manufacturing process must be improved dramatically in order to meet the economic and technology challenges of 21st-century global manufacturing.”

IDC Manufacturing Insights research indicates that the impact of globalization, growing operational complexity and diverse markets and consumers demand that overall manufacturing strategy should shift from economy of scale to economy of scope, focusing on global flexible manufacturing capabilities.

A “design anywhere, make anywhere, sell anywhere” strategy will lead to the formation of a global plant floor. Moreover, automakers will improve portfolio-level planning and incorporate design for capabilities in the design of future vehicles.

No one strategy or approach can meet all these needs and survive the rapid rate of change, the IDC Manufacturing Insights study shows. Manufacturers will have to use a blend of strategies and undertake several process improvement initiatives to realize the architecture necessary to enable the plant of the future.

Among these process improvements are the adoption of emerging IT technologies and operating models – especially in pervasive communication, cloud-based architectures, and mobile devices – which will provide a solid foundation for powering the assembly plant of the future.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Logistics Network Analysis
Logistics network monitoring is an important step in understanding what actually occurs throughout your supply chain.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
IAM, IoT and the Connected Supply Chain
There are three primary models of Identity and Access Management (IAM) technology that CTOs, CSOs, and Supply Chain executives are using to enhance their trading partner communities. While each leverages IAM and the IoT as core components only an “Outside-in” approach truly connects people, systems and things reliably and securely across the supply chain.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...