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
Voice of the Driver 2: Best Practices for Recruiting and Retention
For the past decade and a half, those who predicted the driver shortage have offered their advice on curbing the shortage.
Download Today!
From the August 2017 Logistics Management Magazine Issue
Which carriers, third-party logistics providers, and North American ports have crossed the service excellence finish line ahead of their competitors? Our readers have cast their votes, and now it’s time to introduce this year’s winners of the coveted Quest for Quality Awards.
BMW Takes the Inland Road to Efficiency
Global Logistics: No Shortcuts to Security
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...