The 4 challenges that need to be solved in the automotive industry

 

The industry evolves to become better. Produce better products with the newest technology. The company strives to be more efficient in terms of running the production and operation process. The company also aspires to mitigate risks as it is easier to develop and move forward with fewer risks.

 

With the advancements of the automotive industry, the challenges also evolve. Among the challenges, some of them are challenges in the generation transition. If the challenges that the automotive industry face is not solved, it will hinder the industry from moving further.

 

The challenges that revolve around industry challenges are skill gap, embracing innovation, evolving supply chain, and managing uncertainty. Innovation must be embraced in order to be implemented. Because cars will be self-driving/autonomous soon, this means that the supply chain will evolve. That is where the evolving supply chain is a challenge for the automotive industry. Managing trend fluctuation is also a challenge faced by the automotive industry. As the trends fluctuate, the company may suffer losses if they are unable to adjust to the changing trends.

 

1. Skill Gap

 

The skill gap becomes a challenge because of the transition in personnel. The older generation will soon retire and the newer generation does not have the skills, knowledge or intuition as the old generation has. When the old generation retires, the knowledge retires with them as well. The production will not run smoothly if the transition between generations is not smooth.

 

In order to solve the challenge of skill gap, a system that can provide the best practices the old generation has is needed. This is so that the new generation makes the best practice as work ethic without years and years of experience. Because the older generation retires, the knowledge retires with them as well, leaving the new generation is left in charge with little to no experience as the older generation. Therefore, a comprehensive system that could fill in the knowledge gap needs to be utilized in order for a smooth transition between generation and smooth production.

 

2. Embracing Innovation

 

The challenge of embracing innovation occurs because of technology evolving. Regarding solving the challenge in embracing innovation, as the car will evolve to being connected to the internet, the components that will be built inside the car will differ from before. The factory needs a system that could ensure smooth product development. A system that is able to plan the production process from start to finish while keeping track of the production progress and that is capable of making innovations faster and easier.

 

3. Evolving Supply Chain

 

With the evolving trends in cars, it is certain that the supply chain will evolve as well. For example, when a car is manufactured to be fully battery-powered, it will no longer need fuel pistons that are used for fuel burning. The company will also buy new items such as the battery, making the supply chain different as the car configurations are different.

 

The way to solve the challenges in the evolving supply chain is by implementing a system that is capable of integrating data while ordering and managing inventory through a system. Through the automatization of the ordering system, there will no longer be an inventory surplus and the items ordered will be easily tracked with clear history. Despite the needs of customers change along with the times, with a more efficient and transparent system, the production process will run more smoothly.

 

4. Managing Uncertainty

 

In the era of disruptive technology, everything becomes vulnerable to change. It is uncertain whether something will remain positive or turn negative. Similarly in the automotive industry, the company should be able to predict beforehand of the products that they are going to produce whether it will be profitable or not.

 

Challenges in managing uncertainty could be solved by implementing a system that could integrate all data and enables real-time viewing of data. This is so that the decision could be made based on the data, therefore reducing risks in miss calculating or forecasting the production plan. In spite of the changing trends, the company is still able to reduce risk because they have data that they could refer to.

 

In conclusion, the 4 challenges that the automotive industry face is solvable using an ERP system that is light and cloud-based, enables pre-planning of the production process and tracks the progress, and has integrated data across all department to be a reference. Infor LN is the ERP system that has the features mentioned above. Infor LN is software that is trusted by huge enterprises such as Ferrari and OTIS worldwide.

 

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