Automotive Congress Thailand 2013

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Global Automotive Value/Supply Chain Realignment

 
Executive Summary:
Auto industry ecosystem is examined in this paper aiming to provide some insight for automakers in order to develop an effective value/supply chain strategy. Through looking into five parts of auto value chain ecosystem, the most influential changes and trends in auto industry in each part have been captured. The likely changes in auto ecosystem could have some implications for value chain configuration in auto industry as well as reshaping the fulfillments chain (supply chain) for three physical flows in auto value chain: original equipment parts, replacement/spare parts and accessory parts. Integration in auto industry can be thought of four directions: across the car models, across the functions inside the automaker, downstream and upstream with partners, and across the geographical boundaries. In this paper the issues and challenges for each type of integration are described.

It has been attempted to extract the most prominent changes in auto ecosystem in order to provide some inputs for different types of integration. By taking a system view in this paper, we attempted to investigate the likely changes in auto value chain that we could expect to have significant impact on reconfiguring the auto value chain or redesigning the fulfillment supply chain. In terms of product market, the demand in auto industry is growing but there will be a landscape shifting for demand from Western region to Eastern region. The other major changes in product market are: rising the purchasing power of Asia-pacific countries, shifting the pattern of the car demand to low and zero emission vehicles, and the emergence of a relatively strong substitute product for car in developed and developing countries.

Download Global automotive value/supply chain Realignment paper