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 SCMR Staff
December 14, 2010 - SCMR Editorial

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!

Recent Entries

In an effort to help buyers of freight transportation and logistics services to better understand the required best practices in order to be a shipper of choice for their carrier partners, non asset-based third-party logistics (3PL) services provider Transplace said this week it has rolled out a Preferred Shipper Checklist.

For a new facility in Chicago, DHL Global Forwarding converted to electric lift trucks. The result? Better uptime and a cleaner environment.

January carloads dropped 16.6 percent, or 192,747 annually, to 968,042, and intermodal volume was up 3.4 percent, or 34,523 units, annually at 1,039,621 containers and trailers.

While the PMA-ILWU dispute was settled last spring, a new port-related labor issue popped up on the East Coast last week, when a labor dispute on Friday, January 29 occurred when union members of the International Longshoremen Association (ILA), the largest union of maritime workers in North America, walked off the docks at the Port of New York and New Jersey, the largest East Coast port and second largest U.S. port.

“Sea Strangulation" explains how the United States has become vulnerable to Chinese maritime coercion and details a challenge from China that the U.S. is ill-prepared to meet.

Article Topics

News · Technology · Global · Supply Chain · Manufacturing · Economy · Plan · Make · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.