《凯捷:2023年汽车供应链报告:追求长期韧性(英文版)(80页).pdf》由会员分享,可在线阅读,更多相关《凯捷:2023年汽车供应链报告:追求长期韧性(英文版)(80页).pdf(80页珍藏版)》请在三个皮匠报告上搜索。
1、Automotive Supply Chain:Pursuing Long-Term Resilience#GetTheFutureYouWantPURSUING LONG-TERM RESILIENCEAutomotive supply chainExecutive Summary The nearshoring of automotive procurement adds resilience tothe supply chain According to our survey findings,the proportion of supply obtained from offshore
2、 locations has fallen by 22 percent over the past two years.This has contributed to an improvement in supply chain resilience,as evidenced by increased market confidence and a reduction in order backlogs.We expect this trend to accelerate,driven by regulatory and government policy,in particular that
3、 pertaining to the growing adoption of electric vehicles(EVs)and semiconductors.While inventory building has boosted short-term resilience,it is not a feasible long-term strategyIncreases in inventory,funded by working capital,have been used by both OEMs and suppliers to inject resilience into the s
4、upply chain.Higher stock levels mean that manufacturing can continue without disruption,even if supply is interrupted.However,suppliers are bearing most of the financial burden of such a short-term strategy,usually paying higher rates of interest than OEMs do,making it non-viable in the long term.Su
5、stainability efforts are faltering as automotive organizations fire-fight supply chain crises Successive supply chain crises have sapped automakers time and diverted focus and money away from sustainability initiatives.This is particularly true of suppliers,whose sustainability investments have drop
6、ped significantly(in 22%the proportion of supply obtained from offshore locations has fallen by 22 percent over the past two years0102032Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceExecutive Summary contrast,OEMs investments have increased slightly).One in t
7、hree automotive companies still lacks a comprehensive sustainability strategy,with many existing initiatives put on hold.A shortage of suppliers of recycled materials(and of the materials themselves)has delayed scaling of circular-economy initiatives.A lack of trust,transparency,and data-driven inte
8、lligence is hampering supply chain managementOEMs and suppliers often seem locked into a vicious circle,in which lack of transparency feeds mutual mistrust and vice versa.Suppliers mistrust OEMs manufacturing requirements data(largely owing to a perception that OEMs overorder),while OEMs lack confid
9、ence in suppliers self-reported sustainability data.This general lack of transparency hampers business-critical activities such as risk management and sustainability initiatives,as well as exacerbating challenges in procurement and replenishment.Underlying all this is the lack of a mature data-drive
10、n intelligent supply chain.04Develop a Data-driven,agile supply chain talent and cultureDevelop a workforce management plan for the transition to electric vehicles and automationLeverage technology to build an intelligent,Data-driven supply chain that helps optimize inventoryBuild trust to improve s
11、upplier collaboration and transparency Build partnerships in the battery value chain to sustain future growthLeverage sustainability and circularity to build resilience and consumer loyaltyHOW CAN SUPPLY CHAINS BE A SOURCE OF COMPETITIVE ADVANTAGE TO THE AUTOMOTIVE INDUSTRY?3Capgemini Research Insti
12、tute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceThis report intends to offer actionable recommendations for automotive executives to assist them in creating resilient,connected,intelligent,and sustainable supply chains.It primarily caters to automotive supply chain leaders across suppl
13、y chain strategy,inbound/outbound logistics,sourcing&procurement,IT,demand planning,sales and operations planning,and finance,among other supply chain functions.Given the importance of supply chains for automotive business,this report is also useful to automotive business leaders from general manage
14、ment,strategy,product,manufacturing,and sustainability executives for their supply chain initiatives.This report is based on the findings of a comprehensive industry survey of 1,004 senior executives(director level and above)from leading global automotive organizations.These organizations are automo
15、tive OEMs with annual revenue above$1 billion and automotive suppliers with annual revenue above$500 million.Approximately 70%of surveyed executives belonged to supply chain functions,while the remaining 30%came from other relevant business functions.See Research Methodology at the end of the report
16、 for more details.Who should read this report and why?4Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience5Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceIntroduction When“just in time”is too lateRecent disruption to the globa
17、l automotive supply chain has called into question the industrys conventional wisdom,including the viability of the just-in-time(JIT)methodology.Originated by Toyota,JIT has long been a cornerstone of automotive supply chain philosophy,owing to the benefits it brings of reduced waste,lower warehousi
18、ng costs,and the potential to free up working capital.However,the volatile business landscape has also revealed the downside of JIT;for many organizations,the transition to an alternative approach is already underway.As James Rowan,CEO,President,and Director of Volvo Cars confirms:“Supply chain arch
19、itecture,in general,is changing.This just-in-time process that weve enjoyed for decades now,when there was frictionless trade across the world,that time has gone,and people are now rearchitecting the supply chain to make it more resilient.”1 We see the solution as being in building a resilient,conne
20、cted,intelligent,and sustainable supply chain one that can adapt to the procurement of scarce resources,such as minerals for batteries and semiconductors.Given the industrys growing complexity,however,this transformation is challenging.The automotive supply chain can span multiple regions and countr
21、ies,rendering it vulnerable to global disruptions such as natural disasters,political instability,and trade disputes.6Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceIntroduction Sustainability and the circular economy will be key components of the supply chain
22、of the future.On its current trajectory,automotive is set to overshoot its carbon budget to meet the Paris Agreement by at least 75 percent.2 This is likely to lead to increased regulatory pressure to adhere to sustainability.This report is intended to guide automotive companies through the process
23、of supply chain transformation.Drawing on the latest research,it explores the challenges of supply chain management in todays automotive industry and suggests strategies for building the supply chain of tomorrow.GEORGE KURIANVice President Supply Chain and Logistics,Michelin“One of our primary strat
24、egies for our supply chain is to become more customer-centric.Another is ensuring that our processes remain agile.A big portion of our performance is going to be focused on the capability,skills,and competencies of the future for our people.”7Capgemini Research Institute 2023Automotive Supply Chain:
25、Pursuing Long-Term ResilienceIntroduction FIGURE.1Key areas of focus for this researchKey componentsKey issues in supply chain characteristicsSupply chain resilienceIntelligent supply chainGeopolitical riskJust-in-case resilienceEnvironmental sustainability&circularityBattery recyclingCircular carNe
26、t zeroElectronics and semiconductorsEV Battery8Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceIntroduction About our researchIn June and July 2023,we conducted a survey of 1,004 industry leaders(director level and above)from 449 automotive original equipment ma
27、nufacturers(OEMs)and suppliers across 10 countries(see Research Methodology).We also held in-depth interviews with 24 senior executives from market-leading automotive firms.This report offers insights and recommendations supported by the findings of this research.75%the amount of overshoot the autom
28、otive industry is currently projected to make on its carbon budget to meet the Paris Agreement9Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceNEARSHORING INJECTS RESILIENCE INTO SUPPLY CHAIN0110Capgemini Research Institute 2023Automotive Supply Chain:Pursuing L
29、ong-Term ResilienceValue procured from offshore locations has fallen by 22 percent in the past two yearsThe automotive supply chain is currently undergoing deglobalization.Procurement from offshore locations has dropped by 8 percentage points in absolute terms since 2021.This is equivalent to a 22-p
30、ercent drop in the proportion(by value)of procurement that relates to offshore locations.We expect a further decline of 19 percent over the next two years.This nearshoring fortifies supply chain resilience,as explained by a general manager at a European OEM:Nearshoring is a strategic goal for us.In
31、view of political pressures and raw-material availability,at least 75 percent of the supply chain needs to be nearshored or moved to domestic markets in the long run.”4 Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=592 respondents,primarily from the supply chain
32、 function.Note:Procurement from nearshoring:This involves a business relocating procurement to a geographically nearer country to that currently used.For example,for an organization with final consumers in Western Europe,nearshoring could mean procuring from Eastern Europe,rather than Asia,for examp
33、le.FIGURE.2Procurement from offshore locations has fallen by 22 percent over the past two yearsDISTRIBUTION OF PROCUREMENT LOCATION,IN TERMS OF DOLLAR VALUE202520232021Offshoring Nearshoring Domestic markets 32%32%-22%36%36%36%28%38%40%22%-19%Relative percentage drop11Capgemini Research Institute 20
34、23Automotive Supply Chain:Pursuing Long-Term ResilienceEurope has led this nearshoring trend,with a 25-percent reduction in offshore procurement in terms of dollar value,followed by Asia-Pacific and the US.This closely corroborates our perception of a shift across industries.According to the US Cens
35、us Bureau,Chinese imports to the US fell by 24 percent through May 2023,while Mexico is now the USs leading trade partner.5 This shift can also be seen in automotive procurement from Mexico,6 which helped the country to attract foreign direct investment(FDI)worth$2 billion in October 2022 alone.7 Me
36、xicos Ministry of Economy stated that automotive part manufacturers were among the largest foreign investors in the country in 2022.Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=592 respondents primarily from the supply chain function.FIGURE.3Europe has reduced
37、procurement from offshore locations by 25 percent,a greater reduction than other regionsPERCENTAGE REDUCTION OF OFFSHORING PROCUREMENT(IN DOLLAR VALUE),2023 COMPARED TO 2021Overall APAC US Europe-22%-20%-18%-25%12Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceT
38、o shorten the automotive supply chain and create employment opportunities,the Japanese government has created a$2.2 billion assistance package to facilitate Japanese manufacturers in moving production from China back to Japan.8 India has a similar initiative with its Production Linked Incentive(PLI)
39、program,which has resulted in Bosch implementing its“Local for Local”strategy to increase its localization footprint,with an emphasis on electric powertrains.9 Federico Baiocco,Head of Global Supply Chain and S&OP,Iveco Group,adds:“We are multi-sourcing our supply chain to build back-up solutions fo
40、r disruptions.There are two targets:the availability of materials and avoiding dependency on one single supplier during a crisis.”10 25%the magnitude of reduction of European procurement from offshore locations13Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceSe
41、veral factors contribute to this sharp decline in offshoringWe see addressing regulations,improving transparency,and increasing reliability as the principal drivers of the nearshoring of procurement and supply chains(see Figure 4).Other reasons are the need to improve sustainability metrics and to i
42、ncrease circularity.Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=435 respondents primarily from the supply chain function.FIGURE.4Regulatory concerns,transparency,and reliability are the top drivers of nearshoringPERCENTAGE OF RESPONDENTS WHO HAVE RANKED THE FO
43、LLOWING AS THE TOP THREE REASONS FOR ADOPTING MORE LOCALIZATION13%12%11%8%8%8%Reducing cost ofcomponents andmaterialIncreasingcircularityImproving sustainabilitymetricsIncreasingreliability ofsupplyImprovingtransparencyAddressing existingand newregulations19%The magnitude of reduction of procurement
44、 from offshore locations,expected over the next two years.14Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceRegulatory policy incentivizes reshoring while adding compliance costs The contrast between new and existing regulations highlights the significance of go
45、vernment influence in supply chain decisions specifically in terms of organizations implementing“de-risking”strategies.11 For example:The United States-Mexico-Canada Agreement(USMCA)12 states that,to be sold tariff-free,at least 75 percent of a vehicles components should be manufactured in North Ame
46、rica.This has resulted in North American automotive organizations localizing,as explained by Ola Kllenius,Chairman of the Management Board and CEO of Mercedes-Benz Group:“By the middle of this decade,we will have Americanized(or,rather,North-Americanized)our supply chain for battery cells in the US.
47、We have already sat down with each player and looked at where the raw materials are going to come from,where the refining capacity is,and so on.”13 The US Inflation Reduction Act(IRA)202214 provides tax credits for vehicles that source battery materials in North America to encourage onshore investme
48、nt.For example,General Motors is investing$50 million in Texas-based lithium technology start-up EnergyX as it expands into the mining sector.15 The Indian government is supporting the countrys automotive industry in reshoring its supply chain to increase global competitiveness and reduce dependence
49、 on imports;it is also encouraging the semiconductor ecosystem in this respect via its Production Linked Incentive(PLI)program.16 Apart from these incentive-based regulations,new compliance-based and sustainability-oriented regulations will increase the cost of operating supply chains in lightly reg
50、ulated countries that lack transparency and traceability:The EUs Corporate Sustainability Due Diligence Directive(CSDDD)obliges organizations to carry out due diligence regarding human rights and environmental responsibility,right along the supply chain.17 The EUs new Circular Economy Action Plan fo
51、r the automotive industry proposes that,in order to support the EUs environmental and climate goals,automotive manufacturers will have to develop circular supply chains using recycled materials.18 Such circular-economy initiatives require reverse logistics,which globalized supply chains cannot readi
52、ly support.The USs Uyghur Forced Labor Prevention Act(UFLPA)dictates that goods mined,produced,or manufactured wholly or in part in Xinjiang or by an entity on the UFLPA FEDERICO BAIOCCOHead of Global Supply Chain and S&OP,Iveco Group“We are multi-sourcing our supply chain to build back-up solutions
53、 for disruptions.There are two targets:the availability of materials and avoiding dependency on one single supplier during a crisis.”15Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience70%of our survey respondents that they currently obtain a majority of semicondu
54、ctors from China,Taiwan,Japan,and KoreaEntity List are prohibited from being imported into the US.However,current automotive procurement generally lacks the level of transparency and traceability required to comply with this law.19 The due diligence required to comply with regulations of this type i
55、ncreases the overall compliance cost of procuring from offshore locations.Such regulation,therefore,encourages nearshoring or using domestic suppliers.A shift to EVs and reshoring of semiconductors will accelerate nearshoring The creation of new supply chains for electric vehicles(EVs)will lead to i
56、ncreased reshoring of sourcing and procurement.Nearly three out of five OEMs state that investment in battery and EV supply chains is primarily governed by regulation,political mandates,and geopolitical concerns,all of which are likely to accelerate reshoring.This acceleration is best explained by M
57、arc-Oliver Nandy,Director Global Supply Chain at Mercedes-Benz:“The industry cannot nearshore overnight because companies already have an established supply base.However,they can make different sourcing and footprint decisions for the new products they plan to launch.That is why I expect the rate of
58、 nearshoring to increase in the coming years.”2016Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceRegulations such as the European Chips Act21(ECA)and the USs CHIPS and Science Act22 aim to encourage localized semiconductor production in order to enhance supply
59、chain resilience for national security reasons.These laws address the concentration of semiconductor supplies in China,Taiwan,Japan,and Korea,where 70 percent of our survey respondents currently obtain most of their semiconductors.The ECA is intended to double Europes share of the semiconductor mark
60、et from 10 to 20 percent by 2030 Companies are already responding to these laws.For example:German supplier Bosch has invested$1.2 billion to set up a semiconductor and sensor factory in Germany.23 TSMC,a Taiwanese chip manufacturer,has also announced it will build two semiconductor production plant
61、s in Arizona,USA,by 2024,with an investment of about$40 billion.24 Intel is investing 30 billion(US$33 billion)in a chip manufacturing site in Germany as part of its expansion in Europe.25 Semiconductor investments also take some time to reach full capacity and yields.MARC-OLIVER NANDYDirector Globa
62、l Supply Chain at Mercedes-Benz“The industry cannot nearshore overnight because companies already have an established supply base.However,they can make different sourcing and footprint decisions for the new products they plan to launch.That is why I expect the rate of nearshoring to increase in the
63、coming years.”17Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceHOW HAVE AUTOMOTIVE SUPPLY CHAINS RESPONDED TO THE SEMICONDUCTOR SHORTAGE?Semiconductor shortages were among the top two disruptive events in 2022 as cited by our survey respondents.This along with
64、the increased adoption of advanced driver-assistance systems(ADAS)and autonomous driving as well as the move to“software-defined vehicles”will further increase this demand.Between 2021 and 2023,the average proportion of vehicle value attributed to semiconductors and sensors increased by 51 percent a
65、nd is expected to increase by a further 46 percent between 2023 and 2025(see Figure 5).Doug Parks,Executive Vice President of Global Product Development,Purchasing and Supply Chain at General Motors affirms this prediction:We see our semiconductor requirements more than doubling over the next severa
66、l years as vehicles become technology platforms.”26Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=132 OEM respondents primarily from product and manufacturing functions.FIGURE.5The average proportion of vehicle cost attributed to semiconductors and sensors has in
67、creased by more than half between 2021 and 2023PERCENTAGE VALUE(IN TERMS OF OVERALL COST OF A VEHICLE)THAT IS ATTRIBUTED TO SEMICONDUCTORS AND SENSORS7.0%10.1%15.5%202520232021Average(%)Percentage increase51%46%18Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceE
68、ric Moreau,Vice President,Global Supply Chain and Industrial Strategy at Forvia Electronics comments,:“The demand for semiconductors is growing exponentially;todays vehicles already use many more semiconductors than those made a few years back.We have a different strategy for the new generation of s
69、emiconductors,backed by significant investments.”27 At present,50 percent of the current supply of semiconductor components is still not considered sufficiently secure,with full stack computing platforms and microcontrollers being the least secure according to our survey.Figure 6 indicates take-up o
70、f the two strategies OEMs are adopting to achieve security:investing in semiconductor capacity and bringing software development in house.Surce:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=528 OEM respondents primarily from supply chain,general management,product,and
71、manufacturing functions.FIGURE.6OEMs are moving away from tier-1 and-2 suppliers to achieve greater security of semiconductor supplies 56%60%Investing in secure semiconductor supply capacity as an alternative to traditional tier 1 and 2 suppliersBringing software development traditionally undertaken
72、 by tier-1 suppliers in house19Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceOne of the most common strategies for addressing the issue,as mentioned by 63 percent of respondents,is allocating more working capital to increasing inventories of semiconductors(see
73、 Figure 7).Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=528 OEM respondents primarily from supply chain,general management,product,and manufacturing functions.FIGURE.7Building inventories is the most popular way to address semiconductor supply issuesPERCENTAGE
74、OF OEM RESPONDENTS BY STRATEGIC APPROACH TO INCREASING SEMICONDUCTOR DEMAND63%57%54%54%49%We are building redundancy of sources across the supply chainOur product strategynow includes genericor more readily availablesemiconductorcomponentsSemiconductorsourcing andinventory is astrategic priorityPivo
75、ting to orprioritizing high-marginor more readilyavailable productBuilding inventoriesand allocating moreworking capital tofuture demand 20Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceDespite the general emphasis on inventory,leading OEMs are developing more
76、comprehensive semiconductor strategies.For example,Stellantiss Dare Forward 2030 plan involves securing long-term contracts worth 10 billion through 2030,28 together with:Full transparency on semiconductor content.A systematic risk assessment to reduce legacy parts.Long-term chip demand forecasting.
77、A green list to reduce chip diversity while controlling the long-term security of chip supply.Product-based semiconductor strategies,such as generic substitutes and singular modular computation platforms,are the least scaled as they are dependent on the transition to a central computing architecture
78、.This transformation of E/E(electronic/electrical)systems can reduce cost and improve generic supply and product design,but has yet to be fully implemented.Nevertheless,its effectiveness was the key reason Tesla was able to avoid most of the semiconductor shortage problems experienced by its peers.2
79、9 Our research on automotive software covers this in depth.30 0103020421Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResiliencePartly owing to the trend of reshoring,supply chain resilience has improved There is evidence that automotive organizations have increased res
80、ilience across their supply chains.On average,our respondents believe that they would be able to avoid 60 percent of the revenue loss that occurred in 2022 if the same scenarios recurred today(Figure 8 shows a breakdown of the responses).Part of this confidence undoubtedly stems from new procurement
81、 strategies,such as nearshoring.Source:Capgemini Research Institute,Automotive supply chain survey,JuneJuly 2023;N=863 respondents who faced revenue loss in 2022.Note:We reached a 60 percent average by using a midpoint average method.FIGURE.8If the disruptions of 2022 were repeated today,nearly half
82、 of automotive industry would see less than half the revenue loss60%the average amount of revenue loss saved by automotive organization,if the disruption of 2022 were to repeat again today11%3%6%RESPONDENTS INDICATION OF THE REVENUE LOSS THEY WOULD EXPERIENCE IF LAST YEARS SCENARIO WERE TO REPEAT34%
83、43%3%100%of loss faced in 202275%99%of loss faced in 202250%75%of loss faced in 202225%49%of loss faced in 202225%of loss faced in 2022No revenue loss22Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceAutomakers improved confidence in their supply chains resilien
84、ce is supported by a 61-percent reduction in order backlogs,with further improvements expected(see Figure 9).Reasons for this reduction include reshoring,logistical improvements,and the removal of some bottlenecks as well as increased inventory levels,a topic to which we turn to in the next sectionM
85、ost organizations(especially OEMs)are now better prepared for long delivery lead times,and have built enough inventory to reduce their order backlogs substantially.Suppliers,in contrast,are still feeling the backlash.Our data supports this hypothesis:OEMs report a 70%reduction in order backlog,compa
86、red to a reduction of only 33%for suppliers.Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=843 respondents primarily from supply chain,general management,product,finance,and manufacturing functions.FIGURE.9Improving supply chain resilience and working environment
87、 has contributed to a reduction in order backlogs61%the amount of reduction of order backlog in 2023 compared to 2022PERCENTAGE REDUCTION OF ORDER BACKLOG2022 vs.2023 2023 vs.2024-61%-39%23Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceBOOSTING INVENTORY:ONLY A
88、 SHORT-TERM SOLUTION 0224Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceFaced with sourcing and logistical challenges,the automotive industry has relied on additional working capital and inventoryDifficulties in sourcing parts are the most common cause of backl
89、ogs,with three in five respondents(61 percent)mentioning this issue.For two in five respondents(39 percent),inbound logistics was one of the top three disruptions in 2022;16 percent of respondents named outbound logistics.As Masakazu Yoshimura,MD and CEO of Toyota Kirloskar Motor,which is joint vent
90、ure between Toyota Motor Corporation and Kirloskar Group for manufacturing and selling of Toyota cars in India,explains:“There is the semiconductor issue,logistics congestion,and content shortages.All these combined affect the delivery time of vehicles.No one could have predicted that kind of situat
91、ion after COVID-19 There are shortages of gantry cranes at all major ports in the global logistics chain,and that is affecting the supply of components,regardless of whether it is semiconductors or normal components.”31HENRI-XAVIER BENOISTSVP of Supply Chain at Stellantis”Increasing the total buffer
92、 inventory for critical parts as well as cars including potentially tier 2 like components-by using working capital is a tactic used by OEMs to be more resilient in case a supplier misses a delivery.It does increase resilience but if used just by itself,its not a very scalable solution.”25Capgemini
93、Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceFor the majority of companies,roads and sea shipping are the biggest factors in both inbound and outbound logistical challenges,although railways,vehicle yards,and port terminals are also significant issues(see Figure 10).So
94、urce:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=578 respondents who faced inbound logistical challenges and N=411 respondents who faced outbound logistical challenges.FIGURE.10Roads and shipping are the main drivers of the logistics challenge PERCENTAGE OF RESPONDEN
95、TS THAT FACED LOGISITICS CHALLENGES IN THE FOLLOWING TRANSPORATION OR LOGISTICS MODES 73%64%61%63%48%39%44%38%30%33%3%4%OthersPort terminalsVehicle yardsRailSea shippingRoadInbound logistics challenges Outbound logisitics challenges26Capgemini Research Institute 2023Automotive Supply Chain:Pursuing
96、Long-Term ResilienceIn Europe,52 percent of organizations state that outbound logistics is a key challenge in fulfilling order backlogs,and 70 percent say the same for inbound logistics.Richard Palmer,outgoing CFO of Stellantis,comments:“In Europe,the real issue continues to be outbound logistics th
97、ats still top of the list of our things to resolve.”32 To address this crisis,automotive OEMs and suppliers have been investing in equipment and fleets,trying to establish more long-term relationships and contracts,and building up inventories(see Figure 11).For some organizations,increasing inventor
98、y is a necessity in the short term,even though it involves tying up working capital.As a CEO of an OEM parts logistics organization explains:“Strategic stocks are being increased by employing working capital.As transportation costs are high,increased stock and storage are a better alternative.”33 So
99、urce:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=843 respondents primarily from supply chain,general management,product,finance,and manufacturing functions.FIGURE.11Four of the top six strategies to address logistics challenges are based on operational investment and
100、 increasing working capitalPERCENTAGE OF EXECUTIVES ADOPTING THE FOLLOWING STRATEGIES TO MITIGATE LOGISTICS CHALLENGES44%81%81%80%66%69%66%44%44%36%38%36%OEMs SuppliersSecure more capacityCollaborate closer with suppliers/customersHire/retain/retrain staff and workforceEstablish longer relations/con
101、tractsInvest in equipment and fleetsBuild inventories and increase working capitalStrategies that require additional workingcapital or operational investment27Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceBuilding inventory is a short-term solutionAutomotive o
102、rganizations have been over-reliant on increasing their inventories to ride out the volatility of the past few years.They are now taking longer-term measures to rectify this reliance:three out of five suppliers,and a little less than half of OEM respondents,are working on monitoring-based solutions
103、to increase their understanding of the risk and constraints to which their organizations are subject.Many,too,are venturing out into the open market to purchase from new suppliers.Nevertheless,strategies that require the deployment of additional working capital remain commonplace.Source:Capgemini Re
104、search Institute,Automotive supply chain survey,June-July 2023;N=1,004 respondents.FIGURE.12Three of the top five short-term crisis-management strategies require additional working capitalPERCENTAGE OF EXECUTIVES ADOPTING THE FOLLOWING SHORT-TERM STRATEGIES TO IMPROVE RESILIENCE45%60%48%49%46%52%44%
105、44%51%39%Building more inventories forcritical componentsDedicating working capital to ensurebetter supply managementMandating and monitoring inventoryamong suppliersPurchasing from the open marketand new suppliersBuilding more monitoring solutions tounderstand risk and constraintsOEMs SuppliersStra
106、tegies that require additional workingcapital or inventories28Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceIt is noticeable that suppliers are adopting most of these short-term strategies in greater numbers than are OEMs,putting the former under additional fi
107、nancial strain.Published financial data suggests that these increases in inventory are part of a global trend(see Figure 13).However,in 2022,OEMs inventories decreased,as the redundant stock was used to keep production going while the OEMs dealt with sourcing and logistics issues.Henri-Xavier Benois
108、t,SVP of Supply Chain at Stellantis,explains:“Increasing the total buffer inventory for critical parts as well as cars including potentially tier 2 like components-by using working capital is a tactic used by OEMs to be more resilient in case a supplier misses a delivery.It does increase resilience
109、but if used just by itself,its not a very scalable solution.”34 Source:New York University Stern,financial datasets created and maintained by Prof.Aswath Damodaran,July 2023.FIGURE.13Suppliers inventory turnover is growing faster than that of their OEM counterpartsINVENTORY TURN/SALES,OEMS VS.SUPPLI
110、ERS11.5%11.4%12.7%12.9%10.9%13.9%15.3%13.3%2023202220212020OEMs Suppliers13%the Weighted Average Cost of Capital(WACC)paid by automotive suppliers today29Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience 30Capgemini Research Institute 2023Automotive Supply Chain:
111、Pursuing Long-Term ResilienceOEMs have been able to reduce their working capital requirements,maintaining a lean business model,while their supply chains have been drawing considerably on working capital.As Katja Drrfeld,CFO at Continental,explains:“The main driver for the decrease of the operating
112、cashflow from 2.5 billion to 2.3 billion was strong working capital headwinds from high accounts receivables,as a result of delayed cash inflows from our customers at the end of this year.Inventories continue to stay at a high level owing to a combination of securing the supply chain and higher pric
113、es per unit.”35Source:New York University Stern,Financial datasets created and maintained by Prof.Aswath Damodaran,July 2023.FIGURE.14Suppliers are increasing working capital while OEMs are cutting downWORKING CAPITAL/SALES,OEMS VS.SUPPLIERS11.2%13.2%10.2%15.4%9.4%14.0%16.0%7.5%2023202220212020OEMs
114、Suppliers31Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceReliance on working capital is a risky strategyWith the cost of capital escalating,increasing deployment of working capital is damaging the financial health of automotive organizations.The decision by th
115、e Federal Reserve(the Fed,the USs central bank)to increase interest rates to their highest level in 22 years,a common tactic worldwide,only reinforces this.36 Costs are especially high for suppliers,who are three percentage points less profitable than their OEM counterparts and hence riskier37(see F
116、igure 15).However,as seen above,it is mainly suppliers who are obliged to adopt strategies based on working capital to address volatility.Brooke Kaltz,director of corporate procurement at The Shyft Group,which is an American automobile design company,says:“Coming out of COVID-19,companies that survi
117、ved the financial crunch got some relief due to pent-up demand.However,since last year the high cost of capital and borrowing money has impacted supplier stability and intensified their exposure to financial risk.”38 Source:New York University Stern,financial datasets created and maintained by Prof.
118、Aswath Damodaran,July 2023.FIGURE.15Suppliers pay more than their OEM counterparts for working capitalCOST OF CAPITAL/SALES(WACC),OEMS VS.SUPPLIERS6.0%8.0%6.0%7.0%7.0%8.0%11.0%13.0%2023202220212020OEMs Suppliers32Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceH
119、olding excessive inventory risks a variety of negative effects on the operational and financial well-being of automotive organizations.These include product obsolescence,the costs of warehousing and insurance,the opportunity cost of tying up funds,and the high interest associated with raising additi
120、onal funds,for suppliers in particular.Clearly,the automotive industry urgently needs to reduce its reliance on high inventory levels and find ways of achieving true,long-term resilience in its supply chain at less extreme cost.Long-term supply chain resilience will be linked to sustainabilityAs gov
121、ernments come under growing pressure to meet the goals of the Paris Agreement,regulation will play a significant role in ensuring the economic viability of automotive supply chains.On the basis of its current trajectory,the industry looks set to overshoot its carbon budget by at least 75 percent.39
122、Tighter regulation is to be expected,and non-compliance could lead to supply chain interruptions.Organizations that prioritize sustainability in their business operations and across their supply chains will be better positioned to comply with emerging regulations.Sustainability initiatives such as s
123、eeking to harness renewable power can also address energy-price volatility-named by nearly half of our respondents as one of the top three disruptive events in 2022.Another area of concern for the long-term resilience of the automotive supply chain are the growing resource needs associated with EVs.
124、The International Energy Agency(IEA)states that clean energys share of total demand for minerals will rise over the next two decades to over 40 percent in the case of copper and rare earth elements;60-70 percent for nickel and cobalt;and almost 90 percent for lithium.40 EV manufacturing will account
125、 for a significant proportion of that demand.75%the amount of overshoot,the automotive industry is currently projected to make on its carbon budget to meet the Paris AgreementBROOKE KALTZDirector of corporate procurement at The Shyft Group“Coming out of COVID-19,companies that survived the financial
126、 crunch got some relief due to pent-up demand.However,since last year the high cost of capital and borrowing money has impacted supplier stability and intensified their exposure to financial risk.”33Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceCurrently,there
127、 is a significant gap between the demand and supply of lithium,a key raw material in battery production.Lithium demand for EVs increased from 8 kt in 2016 to 77 kt in 2022 and is expected to increase further,widening the gap.41 In order to meet the growing demand associated with EV batteries,lithium
128、 production needs to increase from 345,000 tonnes in 2020 to 2 million tonnes in 2030.42 Our survey also highlights this issue:OEMs,on average,have only secured three years worth of battery raw materials(see Figure 16).40%the rise in clean energys share of total demand for minerals over the next two
129、 decades,in the case of copper and rare earth elements as per the International Energy Agency(IEA)Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=736 respondents primarily from supply chain,general management,product,manufacturing,and sustainability functions.Note
130、:we reached a 3-year average by using a midpoint average method.FIGURE.16On average,OEMs have secured only three years of battery raw materials AVERAGE FUTURE SUPPLY OF BATTERY RAW MATERIALS SECURED20%41%21%8%7%Less than a year12 years23 years35 years510 yearsMore than 10 years3%34Capgemini Research
131、 Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceA considerable amount of investment is required to create new sources of battery raw materials but,according to the IEA,new sources will bring sustainability challenges:“Over 50 percent of todays lithium and copper production is con
132、centrated in areas with high water stress levels.”43 Finding ways to satisfy mineral demand sustainably will be essential to long-term supply chain resilience.Recycled EV batteries can meet demand for battery raw materials to some extent but,given the relatively young age of EV fleets and the existe
133、nce of better second-life options for batteries,not completely.However,more generally,cross-industry circular supply chain provisions will also help.Regulations(such as those promulgated by the EU)on recycling batteries and sourcing compliance are likely to be extended to require battery raw materia
134、l supply chains to be sustainable and circular.The rise of battery reuse,recycling,and circular supply chains will improve resilience because fewer virgin raw materials will be needed,reducing exposure to supply chain disruptions and to volatile materials prices.“Over 50 percent of todays lithium an
135、d copper production is concentrated in areas with high water stress levels.-International Energy Agency(IEA)35Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceSUSTAINABILITY EFFORTS ARE FALTERING AMID SUPPLY CHAIN CRISES 0336Capgemini Research Institute 2023Autom
136、otive Supply Chain:Pursuing Long-Term ResilienceSustainability is not a top factor in supply chain decision-makingAs we have seen,companies have been struggling to address volatility and geopolitical concerns that threaten to disrupt production.Consequently,attention has been diverted away from supp
137、ly chain sustainability:only 37 percent of respondents in our survey say their organization considers sustainability,carbon footprint,and environmental risk when making supply chain decisions(see Figure 17).Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=1,004 res
138、pondents.FIGURE.17Sustainability ranks fifth out of 11 factors when making supply chain decisionsPERCENTAGE OF RESPONDENTS WHO MAKE SUPPLY CHAIN DECISION USING THE FOLLOWING FACTORS49%42%41%40%37%Sustainability,carbon footprints,and environment riskResilience of supply chainCostGeopolitical andtrade
139、 risk managementQuality37%of respondents in our survey say their organization considers sustainability,carbon footprint,and environmental risk when making supply chain decisions Only 37Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceA few organizations are,howev
140、er,embedding sustainability as a key element of their supply chain procurement strategies.For instance,Volkswagen is seeking to“improve its supply situation,increase product quality and boost innovativeness and sustainability.”44 Sustainability strategies are stagnatingIn recent years,the industry h
141、as shown little improvement with regard to sustainable supply chain strategy.In fact,one-third of our respondents say their companies still lack a comprehensive strategy(Figure 18),a worrying finding since,without such a strategy,they have little chance of meeting environmental goals.Sources:Capgemi
142、ni Research Institute,Automotive supply chain survey,June-July 2023;N=196 respondents primarily from the sustainability,general management,and product management functions;Sustainability in Automotive Executive Survey,July-August 2022,N=1,080 respondents;The Automotive Industry in the Era of Sustain
143、ability,Executive Survey,November-December 2019,N=503 respondents.FIGURE.18One in three respondents lacks a comprehensive sustainability strategy for their supply chain PERCENTAGE OF RESPONDENTS WHO STATE THAT THEY HAVE A COMPREHENSIVE SUSTAINABILITY STRATEGY IN PLACE FOR THEIR SUPPLY CHAIN65%66%62%
144、20232022202038Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceCompared to 2022,our respondents report a reduction in deployment of several types of sustainability initiatives(Figure 19),probably owing in part to changing logistics modes and supplier bases.The ne
145、ed to maintain continuity of operations will take priority over,for example,initiatives to measure carbon footprints,cut emissions through route optimization,or increase traceability.Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=196 respondents primarily from th
146、e sustainability,general management,and product management functions;Intelligent Supply Chain Research,AugustSeptember 2022,N=120 respondents primarily from the automotive industry.FIGURE.19There is a noticeable decline in implementation of sustainability initiatives PERCENTAGE OF RESPONDENTS WHO AR
147、E FULLY OR PARTIALLY DEPLOYING THE FOLLOWING SUPPLY CHAIN SUSTAINABILITY INITIATIVES,2023 VS.202270%59%63%52%69%58%59%60%2022 2023Data-driven supplierevaluationand monitoringProduct information onorigins,composition,andmanufacturing processesRoute optimization tocut emissionsMapping the carbonfootpr
148、int of raw materials,energy,logistics,and delivery39Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceOverall,the maturity of sustainability implementation is low.Currently,fewer than half of organizations have deployed such initiatives across some regions or prod
149、uct lines,while only 13 percent are actively scaling them globally(see Figure 20).13%of all sustainable supply chain initiatives have been scaled by organizations on averageSource:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=196 respondents primarily from the sustaina
150、bility,general management,and product management functions.FIGURE.20Sustainable supply chain initiatives have been scaled by only 13%of organizations on average.Bring product informationon origins,composition,and manufacturing processesData-driven supplierevaluation and monitoringReduced SKU invento
151、riesbased on customerexpectationsReturnable packagingRoute optimization to cutemissionsMap the carbon footprint inraw materials,energy,logistics,and deliveryBetter demand planning toreduce excess inventory loadsSCALING OF SUSTAINABLE SUPPLY CHAIN INITIATIVES4%5%6%4%5%4%9%33%54%9%36%50%9%42%41%11%34%
152、49%13%41%39%15%37%44%15%33%42%16%Not deployed Not currently deployed but evaluating Currently deployed across some regions/product lines/processesActively scaling up across regionsAverage 13%Only 40Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceSustainability i
153、nvestments are stagnating,with automotive suppliers showing a 17-percent year-on-year drop Investment in supply chain sustainability has increased very slightly overall.This increase is mainly confined to OEMs;suppliers show a significant decline(see Figure 21).Suppliers have cut their sustainabilit
154、y budgets under the financial strain of utilizing working capital to increase inventory,and of undertaking operational investments to build resilient supply chains.Marc-Oliver Nandy,Director Global Supply Chain at Mercedes-Benz AG,explains:“When the multi-crisis hit the industry,with COVID-19,the se
155、miconductor crisis,and the Ukraine war,there were a lot of budget restrictions.And,as the industry navigated the supply chain crisis,regaining resilience was the focus topic.However,there is no way around green logistics in the long run.”45 Source:Capgemini Research Institute,Automotive supply chain
156、 survey,June-July 2023;N=635 respondents,primarily from the finance and supply chain functions;Sustainability in Automotive,Executive Survey,July-August 2022,N=1,080 respondents.FIGURE.21Automotive suppliers report a major reduction in sustainability investmentsAVERAGE YEARLY INVESTMENTS FOR SUPPLY
157、CHAIN SUSTAINABILITY(in USD millions)$52.5$54.3$66.0$68.4$36.6$30.5SuppliersOEMsOverall2022 2023-17%41Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceOur research on investment trends shows that sustainability is frequently seen as a cost center,rather than a va
158、lue center.It also shows fear of a downturn has exacerbated wariness of funding sustainability investments.46 Circularity initiatives are encountering obstaclesIn the context of an evolving economy,circular approaches can help to create resilient and sustainable supply chains that make optimal use o
159、f limited resources.In our research,73 percent of companies reported higher rates of revenue growth after adopting sustainable design principles.47 However,automotive organizations have experienced difficulty in implementing large-scale circular initiatives.In our 2022 research on sustainability in
160、the automotive industry,we found that,despite being among organizations top priorities,circularity initiatives had failed to scale,achieving only 29 percent deployment.Furthermore,while 73 percent of executives agreed that participation in the circular economy is necessary to achieve long-term finan
161、cial and competitive goals,only 53 percent followed a circular economy strategy.48 73%of companies reported higher rates of revenue growth after adopting sustainable design principles.42Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceThe alarming general lack of
162、 progress on circularity in the automotive supply chain is reflected in the low current levels of recycling:currently,the average proportion of recycled material that goes into a closed loop stands at just 19.5 percent.The percentage of recycled material(excluding batteries)used in final products ha
163、s grown only marginally,from 12.7 percent in 2021 to 17.5 percent in 2023.As these figures confirm,the automotive industrys recycling efforts are limited,and must be scaled to meet climate 29%of organizations have scaled circular initiatives,despite being on top of their priority73%of executives agr
164、eed that participation in the circular economy is necessary to achieve long-term financial and competitive goals53%followed a circular economy strategy.goals and build a robust supply chain.Dominik Schedl,Supply Chain Manager at Indie Semiconductor-a US-based automotive semiconductor and software so
165、lution provider-points out that certain steps are easier for larger players:“You can recycle up to 90 percent of battery materials,provided it is done on a large scale.Not everyone is in a position to recycle batteries the way you can on large manufacturing projects.”4919.5%the average proportion of
166、 recycled material that goes into a closed loop today.43Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceSource:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=111 respondents primarily from manufacturing function.FIGURE.22Long-term u
167、navailability and reliability of recyclable materials is limiting recyclingPERCENTAGE OF RESPONDENTS STATING THE FOLLOWING CHALLENGES IN USING RECYCLED MATERIALS 54%50%48%44%42%Quality is not sufficient to scaleLack of sources for recycled materialsHigher cost of recycled materials compared withvirg
168、in materials Lack of suppliers and vendorsLong-term unavailability and unreliabilityOur survey found a number of factors are limiting recycling,with lack of suppliers and reliable materials most often mentioned(see Figure 22).Wulf-Peter Schmidt,Director Sustainability,Advanced Regulation&Product Con
169、formity,Europe at Ford,comments:“Given the nature of the product,the automotive industry has high potential for recyclability and circularity.But all lifecycle stakeholders need to keep improving and innovating to have a stable and secure supply of high-quality recycled-content material that meets a
170、 given specification.”50 44Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceA scarcity of vendors and long-term unavailability and unreliability of parts are hindering progress in putting materials back into the loop.Quality is also an issue.Maureen Kiline,Vice P
171、resident,Public Affairs&Sustainability at Pirelli Tire North America,comments:“At Pirelli,we include some recycled materials in our tires.There are a lot of companies working on carbon black recovered from tires but,unfortunately,the quality of the material is not nearly as good as virgin material.”
172、51 With regulation tightening in relation to climate risks,along with customer and investor pressures,the auto industry must resolve its sustainability issues.Stricter regulations,such as the Supply Chain Due Diligence Act in the EU and regulations for sustainable and circular battery supply chains,
173、52 mean organizations will need to intensify their focus on circularity.They will also have to ensure that environmental and social standards are observed across their value chains.MAUREEN KILINEVice President,Public Affairs&Sustainability at Pirelli Tire North America“At Pirelli,we include some rec
174、ycled materials in our tires.There are a lot of companies working on carbon black recovered from tires but,unfortunately,the quality of the material is not nearly as good as virgin material.”45Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceA LACK OF TRUST,TRANS
175、PARENCY,AND DATA-DRIVEN INTELLIGENCE IS HAMPERING SUPPLY CHAIN MANAGEMENT0446Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceTrust issues are preventing information sharing and risk monitoring Since at least the mid-2000s,lack of trust between OEMs and suppliers
176、 has been a key issue.53 Recent research in the US indicates that,from 2020 to 2022,only Honda and Nissan showed any improvement in supplier relations.54 The general deterioration in relationships suggests that supply chain volatility and COVID-19 have eroded trust.The result is an environment that
177、stymies information sharing and transparency:More than seven in ten(71 percent)of our survey respondents state that a lack of trust between OEMs and suppliers prevents sharing of information.Only 45 percent of our supplier respondents believe OEMs regard suppliers as equal partners.In China,only 25
178、percent of suppliers believe this.71%our survey respondents state that a lack of trust between OEMs and suppliers prevents sharing of information.45%of our supplier respondents believe OEMs regard suppliers as equal partners.47Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Te
179、rm ResilienceLess than half of suppliers trust OEMs manufacturing capacity requirement dataSuppliers trust little of the data they receive.A critical area is manufacturing capacity requirements,where data is trusted by less than half(47 percent)(see Figure 23).Source:Capgemini Research Institute,Aut
180、omotive supply chain survey,June-July 2023;N=266 supplier respondents who collect these data points.FIGURE.23Less than half of suppliers trust the manufacturing capacity data they receive from OEMs PERCENTAGE OF SUPPLIER RESPONDENTS WHO TRUST THE FOLLOWING DATA52%47%54%Manufacturing capacity require
181、mentOperational riskDemand forecast48Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceSource:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=801 respondents,primarily from the supply chain,general management,product management,and man
182、ufacturing functions.FIGURE.24More than three in five respondents from suppliers say that OEMs overstate their production goalsMore than three in five(64 percent)of our supplier respondents agree that OEMs overstate their production goals(see Figure 24).Ismael Moreno,Material Planning and Logistics
183、Director Europe,Cooper Standard,explains:“Suppliers have lost trust in the demands received from OEMs because of multiple cases of artificially high demands.”55 The underlying OEM practice of overordering is owing to a lack of proper forecasting tools,together with a conservative approach to securin
184、g manufacturing capacity.64%of our supplier respondents agree that OEMs habitually overstate their production goalsPERCENTAGE OF SUPPLIERS WHO AGREE WITH THE FOLLOWING STATEMENTS58%45%64%Automotive OEMs consider theirsuppliers as equal partners We do not share information withour automotive customer
185、sbecause it could negatively affectour competitive advantageAutomotive OEMs overstate production goals,negativelyaffecting our capacity49Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceEnvironmental and climate risk is the most monitored risk in supply chains,ye
186、t sustainability data is the least trusted dataThe lack of trust goes both ways.Carbon footprint and sustainability(including water and power usage,waste,landfill,etc.)data is trusted by only half(or 54 percent and 57 percent,respectively)of our OEM respondents.This lack of trust critically affects
187、supply chain decisions and initiatives around net zero and sustainable supply chains:Almost two out of five automotive organizations(37 percent)use data on sustainability,carbon footprint,and environmental risk to make overall automotive business supply chain decisions.Environmental and climate risk
188、 is the most tracked supply chain risk rightly so,with extreme weather and resource shortages being critical risks for disruption of supply chains(Figure 25).ISMAEL MORENOMaterial Planning and Logistics Director Europe,Cooper StandardSuppliers have lost trust in the demands received from OEMs becaus
189、e of multiple cases of artificially high demands.50Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceYet only 38 percent of OEM supply chain professionals trust carbon footprint data,while 46 percent trust sustainability data.Debarjo Chakraborti,Director at Stella
190、ntis Japan,says:“The carbon footprint data exchanged between OEMs and suppliers is unreliable because manufacturers themselves have not fully integrated data across the supply chain,and because the data flow is not good.Regional differences,plus various irregularities and anomalies,cause these data
191、issues.”56 The challenge here is compounded by the fact that less than half(46 percent)of respondents audit their supply chain for sustainability.38%of OEM supply chain professionals trust carbon footprint data.Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=905 r
192、espondents primarily from the supply chain,general management,product management,and manufacturing functions.FIGURE.25Environmental and climate risk monitoring decreases as we go down the supplier tiers PERCENTAGE OF RESPONDENTS WHO MONITOR THEIR RISK AND THEIR SUPPLIERS(GROUPED BY TIER)60%32%6%60%M
193、onitor tier-3 suppliersand beyondMonitor tier-2 suppliersMonitor tier-1 suppliersMonitor their ownenvironmentaland climate riskOnly 51Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceSupply chain transparency is low,and gets lower in higher tiersLack of trust amo
194、ng suppliers and OEMs is a major factor in poor supply chain transparency,which is recognized by the industry as a serious matter.Eric Moreau,Vice President,Global Supply Chain&Industrial Strategy at Forvia Electronics,says:“The first lesson from the semiconductor crisis is that we need to be transp
195、arent with our suppliers;the second is about being agile and knowing how to make decisions quickly,using forecasting.”57 To ensure ethical and sustainable practices throughout the supply chain,a company needs to be able to verify that its suppliers comply with social and environmental standards.Our
196、research reveals a lack of visibility in the automotive supply chain a lack that gets more acute as tiers get more remote(see Figure 26).Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=692 respondents primarily from the supply chain and sustainability functions.FI
197、GURE.26Visibility and sustainability oversight is missing in tier-3 suppliers and beyondPERCENTAGE OF SUPPLIER BASE,GROUPED BY TIER,HAVING THE FOLLOWING56%31%15%14%31%51%49%30%15%Net-zero mandates for suppliersSustainability oversightVisibility of participantsTier-1 suppliers Tier-2 suppliers Tier-3
198、 suppliers52Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceLack of visibility limits the effectiveness of monitoring and managing critical business parameters such as inventory levels.It becomes difficult to assess and manage risks and to respond to supply chai
199、n disruptions.Consequences may include production delays,increased costs and lead times,financial losses,decline in customer satisfaction,and reputational damage.Unfortunately,only one in three suppliers in our survey collects supply chain disruption data from their suppliers and passes it on to the
200、ir immediate customers;17 percent of suppliers do so for inventory levels.Given this scarcity of data,it is unsurprising that many companies make little attempt to monitor risk in their overall supply chains(Figure 27).Better information flows including flows of real-time data,even from suppliers on
201、 more remote tiers will improve risk monitoring and reduce the risk of unexpected disruptions.Maureen Kline,Vice President of Public Affairs and Sustainability at Pirelli Tire North America,says:“There is a big move toward digitizing the supply chain.A lot more data can then be analyzed,giving compa
202、nies a better understanding of the supply chain and its risks.But transparent communication is also required to get ahead of those risks.”58 Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=905 respondents primarily from the supply chain,general management,product
203、management,and manufacturing functions.FIGURE.27Risk monitoring of the supply chain is low overall and does not extend beyond immediate suppliersPERCENTAGE OF SUPPLIER BASE WHOSE RISK IS BEING MONITORED57%13%100%Average percentage of supplier base being monitoredMonitor tier-1Monitor tier-2Monitor t
204、ier-3 or entire supplier base53Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceCATENA-X:THE FIRST OPEN AND COLLABORATIVE DATA ECOSYSTEM FOR AUTOMOTIVE SUPPLY CHAINThe remedy for lack of visibility and poor information flows is a data-driven supply chain.The aim
205、is to create a cross-company data value chain,building systemic coverage to help companies reach resilience and sustainability goals.Thanks to Catena-X,that is a real prospect.Data-driven decision-making requires provision of internal and external data points.In particular,external data points beyon
206、d tier-1 and tier-2 suppliers are very hard to collect accurately in real time.With the broad participation of companies in standardized,open,and trusted data ecosystems such as Catena-X,this issue can be resolved.54Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilien
207、ceUS auto manufacturer Ford has engaged with Catena-X to increase sustainability transparency:59 “Catena-X will establish a digital twin for our products,from which we can draw insights into the carbon-emission hot spots in our supply chain.Suppliers will only have to focus on one reporting requirem
208、ent,rather than report separately to multiple OEMs with different reporting formats and requirements,”60 assures Wulf-Peter Schmidt,Director Sustainability,Advanced Regulation and Product Conformity,Europe at Ford.13%the average percentage of Tier-3 supplier base being monitored for riskWULF-PETER S
209、CHMIDTDirector Sustainability,Advanced Regulation and Product Conformity,Europe at Ford“Catena-X will establish a digital twin for our products,from which we can draw insights into the carbon-emission hot spots in our supply chain.Suppliers will only have to focus on one reporting requirement,rather
210、 than report separately to multiple OEMs with different reporting formats and requirements.55Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceCurrent data-driven supply chain initiatives lack maturity and investmentThe lack of digital integration,both within the
211、supply chain function and externally,prevents collaboration,reduces visibility,and fosters uncertainty,resulting in a weakened ability to build trust.The lack of data-driven intelligence in supply chains also encourages the tendency to tie up working capital in extra inventory to provide resilience
212、as we have seen,a problematic tactic.Only half of our survey respondents(53 percent)state that they have a mature intelligent supply chain to enable data-driven decisions(see Figure 28).For those that do not,there are consequences for a range of functions and operations,including forecasting and sce
213、nario planning,inventory management,and risk assessment.Intelligent supply chains possess an agility that is necessary to respond to new and upcoming challenges;without this,it is more difficult to integrate newer technologies such as artificial intelligence(AI)and data analytics.56Capgemini Researc
214、h Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceA good example of what is possible is BMWs RiskHub.BMW established RiskHub to address supply chain challenges,utilizing AI and data analytics to analyze external data sources to detect threats of natural disasters and financial ris
215、k.BMW aims to procure components close to production sites,maintain local teams in key purchasing markets,and prioritize a resilient supply chain strategy.61Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=655 respondents primarily from the supply chain and IT func
216、tions.FIGURE.28Only half of respondents have a mature intelligent supply chain to enable data-driven decision-making53%state that they have a mature intelligent supply chain to enable data-driven decisionsPERCENTAGE OF RESPONDENTS THAT STATE THAT THEY HAVE A MATURE INTELLIGENT SUPPLY CHAIN ENABLING
217、DATA-DRIVEN DECISION-MAKING55%45%54%53%EuropeNAAPACGlobal57Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceDespite examples of good practices,many automotive supply chains today lack key features and capabilities required to provide trust and transparency.Only a
218、 little more than half(55 percent)of survey respondents have access to real-time data to make decisions,impeding agility in responding to changing circumstances and emergencies.About the same percentage can integrate third-party data and analytics solutions(see Figure 29).For the rest,there are prov
219、en measures to provide these essential capabilities.Beau Dietz,Business Unit Manager Heavy Duty Engine Platform(HDEP)Assembly and ePowertrain Manufacturing,Daimler Truck,says:“Integrating key data sources with platforms like Tableau or Power BI is a good starting point.Leveraging AI,adds a new analy
220、tics dimension;making it possible to uncover missing data sources and gain a forward-looking perspective.A good AI system can do things like assess a supplier performance and suggest alternative transportation methods to ensure timely delivery.AI can also consider multiple real-time factors like tra
221、ffic conditions or driver availability to make proactive scheduling decisions and secure the supply chain.”62 Source:Capgemini Research Institute,Automotive supply chain survey,June-July 2023;N=655 respondents primarily from the supply chain and IT functions.FIGURE.29Automotive supply chains lack th
222、e adoption of key intelligent features and capabilitiesPERCENTAGE OF RESPONDENTS WITH THE FOLLOWING INTELLIGENT FEATURES AND CAPABILITIES55%55%41%37%Ability to integrate specialized or industry-specificexecution systems with the ERP platformAbility to leverage the full power of theERP platform/softw
223、areAbility to easily integrate third-party data,analyticssolutions,and platforms into supply chaindata platformsSupply chain function that has access to near-real-timedata to make decisions58Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceBEAU DIETZBusiness Unit
224、 Manager Heavy Duty Engine Platform(HDEP)Assembly and ePowertrain Manufacturing,Daimler Truck“Integrating key data sources with platforms like Tableau or Power BI is a good starting point.Leveraging AI,adds a new analytics dimension;making it possible to uncover missing data sources and gain a forwa
225、rd-looking perspective.A good AI system can do things like assess supplier performance and suggest alternative transportation methods to ensure timely delivery.AI can also consider multiple real-time factors like traffic conditions or driver availability to make proactive scheduling decisions and se
226、cure the supply chain.”59Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceHOW CAN THE AUTOMOTIVE SUPPLY CHAIN BECOME A SOURCE OF COMPETITIVE ADVANTAGE?0560Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceAs shown above,challen
227、ges to automotive supply chains are often interrelated.To build a supply chain that can deliver a competitive edge,structural,cultural,and technological changes are required(Figure 30).Source:Capgemini Research Institute.FIGURE.30Structural,cultural,and technological changes are needed to make the s
228、upply chain a source of competitive advantage.Develop a Data-driven,agile supply chain talent and cultureDevelop a workforce management plan for the transition to electric vehicles and automationLeverage technology to build an intelligent,Data-driven supply chain that helps optimize inventoryBuild t
229、rust to improve supplier collaboration and transparency Build partnerships in the battery value chain to sustain future growthLeverage sustainability and circularity to build resilience and consumer loyaltyHOW CAN SUPPLY CHAINS BE A SOURCE OF COMPETITIVE ADVANTAGE TO THE AUTOMOTIVE INDUSTRY?61Capgem
230、ini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience1.Leverage technology to build an intelligent,data-driven supply chain to help optimize inventoryOEMs practice of adding safety margins onto orders adversely affects supplier trust,reducing the competitiveness of the ove
231、rall supply chain.Issues include excess inventory,suboptimal working capital deployment,and poor financial health.Underlying all these problems is one cause:the lack of mature forecasting tools.Our survey shows that only 55 percent of respondents have access to near-real-time data,while a similar pr
232、oportion are unable to integrate third-party platforms.“The trust between OEMs and their suppliers can be strengthened by transparency in the supply chain and appropriate tools and platforms that offer this transparency,”confirms Marc-Oliver Nandy,Director Global Supply Chain at Mercedes-Benz AG.63
233、Modern technologies,such as predictive analytics and machine learning(ML),can monitor and deliver insights into risks.Mercedes-Benz and Microsoft have partnered to create a data platform called MO360,which is expected to improve production efficiency across the OEMs 30 worldwide manufacturing plants
234、 by a projected 20 percent between 2022 and 2025.A digital twin of the supply chain will identify potential bottlenecks.65 AI is a critical part of this solution,as explained by a CEO of an OEM logistics company:“Integration of AI will enable us to forecast demand for thousands of parts,including bo
235、th fast movers and also low-volume parts like custom interiors with a specific color.”66 2.Build trust to foster transparency and more effective supplier collaborationA supply chain director of a North American OEM states:“My strongest recommendation for supply chain management is to build collabora
236、tion and partnership.And the second most critical is to build trust.”67 To address these issues,automotive organizations should establish supplier relations policies laying out common working rules and ethical guidelines.These policies should cover:I.Isolation of operational and risk information fro
237、m vendor-selection processes.Operational information(such as inventory,underused capacity,and bottlenecks)should not be used in supplier negotiations.This information should be considered privileged,with access controlled and siloed among negotiating and operating teams.55%of respondents have access
238、 to near-real-time data.62Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceII.Transparency and disclosure.Organizations should strive to make operational and forecasting information available to their suppliers.Every effort should be made to disclose how forecast
239、ing conclusions are reached,and to explain the safety buffer and contingency provisions expected from suppliers.Federico Baiocco,Head of Global Supply Chain and S&OP,Iveco Group,notes that information should flow in both directions:“We need to increase the amount of data that we provide to our suppl
240、iers,as well as the data our suppliers provide to us,including long-term forecasting,production data,scheduling,stocktaking,etc.”68DOMINIK SCHEDLSupply Chain Manager at Indie Semiconductor“Long-term agreements with suppliers should be made,with definitions of capacity allocated and delivery arrangem
241、ents.Todays longer lead times make this long-term collaboration vital for reaching strategic targets.”III.Conflict resolution and arbitration.Management should define and streamline formal processes for dealing with supplier grievances and dispute resolution.These processes,including their implement
242、ation and governance,should be rules-based and available for everyone to view.69 IV.Timely communication.Giving suppliers clear,up-to-date information will help them navigate change,including major upheavals such as the technology transition to EVs.Defining and publicizing the communications policy
243、is,once again,the key.63Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceOnce trust has been established,it becomes possible to build long-term capacity and resilience.Effective collaboration and strong ecosystems then enable transparency and visibility,facilitat
244、ing better forecasting and risk management.Dominik Schedl,Supply Chain Manager at Indie Semiconductor-explains:“Long-term agreements with suppliers should be made,with definitions of capacity allocated and delivery arrangements.Todays longer lead times make this long-term collaboration vital for rea
245、ching strategic targets.”70 3.Create strong partnerships throughout the battery value chain to sustain future growthNearly three in five respondents say their companies are investing directly in mining operations to secure raw materials for battery manufacturing.However,several dimensions of this fi
246、eld are challenging.First,new battery chemistry is under development,casting doubt on demand levels for future materials.Second,massive upfront investment is required.Third,these investments have long lead times.According to the IEA:“Lithium mines that started operations between 2010 and 2019 took a
247、n average of 16.5 years to develop.”71 Fourthly,the complexity,scale,and FEDERICO BAIOCCOHead of Global Supply Chain and S&OP,Iveco Group“We need to increase the amount of data that we provide to our suppliers,as well as the data our suppliers provide to us,including long-term forecasting,production
248、 data,scheduling,stocktaking,etc.64Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resiliencethe need for expertise in the field of mining and chemical refinement will raise the overheads of scaling such a strategy.Given these considerations,a collaborative approach could
249、 well produce better outcomes.Automotive organizations should build a wide range of partnerships to develop battery resources through joint investments and long-term secured contracts.Investment can be optimized by balancing different materials,sources,and regions.4.Implement a comprehensive workfor
250、ce management plan,focusing on automation and transition to EVsThe workforce management approach must be tailored to shifting requirements,particularly those associated with the transition to EVs and with ongoing automation.To ensure that the automotive workforce is able to migrate effectively,compa
251、nies should take the following steps:I.Assess how technology transformation will affect the workforceThis impact does not always have to be in terms of redundancies;there could also be a dramatic shift in the nature of a role.Organizations should ask which job families are affected,how severe the im
252、pact is,and what future roles will be required.II.Define new roles and set up an upskilling processOrganizations should identify roles that underpin core competencies and long-term strategies.Upskilling will ensure these competencies are nurtured in house.III.Train leaders to communicate change effe
253、ctivelyExcellent communication skills can ensure smooth transitions for both organization and workforce.The choice of communication channel is also important:In-person meetings that cascade down the organization structure can foster a perception that leadership is accessible.5.Develop a data-driven
254、and agile supply chain culture,and the talent to support itChanging organizational culture requires considerable time and effort.Most supply chain functions are experience-based but this system can break down in the face of unprecedented challenges or volatility.65Capgemini Research Institute 2023Au
255、tomotive Supply Chain:Pursuing Long-Term ResilienceTo be sufficiently agile to build a competitive advantage,companies require data-driven decision-making.As George Kurian,Vice-President Supply Chain and Logistics,Michelin NA,says:“Agility is important because success is not about being better than
256、the competition,but about being faster than the competition.And thats vital because no one truly knows where were going.”72 Building a data-driven culture requires the following steps:I.Appoint and empower change agents to drive data-driven cultureThese carefully selected employees can demonstrate t
257、he usage of new skills,technologies,and capabilities as a template for others to follow.II.Empower employees at all levels with tools and skills to implement data-driven decision-makingSelf-service tools can make data available to everyone.Employees need to be able to create and understand dashboard
258、s,plot simple regression models,and use data-driven storytelling.III.Use collaboration tools to increase transparencyTools such as integrated business planning(IBP)solutions can overcome both internal siloes between supply chain functions and external ones between suppliers and customers.This increa
259、ses the sharing of both information and expertise.IV.Design new KPIs focused on behaviors rather than successes or failures.KPIs and related incentives can foster innovation and encourage supply chain professionals to develop new behaviors,with the emphasis on risk-taking and adapting to new situati
260、ons and technologies.66Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience56%of our survey respondents report improved operational efficiency from recycling vehicle parts.6.Harness sustainability and circularity to build resilience and consumer loyaltyBy integratin
261、g sustainability and circularity into their supply chain strategies,businesses can create more resilient and future-proof operations,with fewer concerns about resource availability.More than half(56%)of our survey respondents report improved operational efficiency from recycling vehicle parts.Leadin
262、g OEMs are already taking steps to realize these benefits.For example:Renault is replacing its traditional auto manufacturing plant in Flins,France with recycling and reconditioning activities.This program is expected to decrease the time required to prepare a used car for resale from 21 to eight da
263、ys.73 BMW Group Plant Dingolfing will use heat produced from regional biomass and its own waste wood to meet about 50 percent of its processes hot-water requirements from 2025.74 Circular economy principles can be applied to existing products,but should be applied as early as possible and certainly
264、during the pre-use phase of a vehicles lifecycle.Circularity and sustainability generally have knock-on benefits for the supply chain and the business as a whole.Many OEMs recognize the need for an all-embracing approach to circularity and sustainability.Renault,for instance,has announced a circular
265、 economy initiative called The Future is NEUTRAL75 with the long-term objective of increasing the proportion of recycled materials in the production of new vehicles.The initiative targets all automotive players.The aim is to reach a business portfolio turnover of more than 2.3 billion and an operati
266、ng margin of more than 10 percent by 2030.New business models can make circularity easier.Consider,for example,the product-as-a-service model,where the OEM retains ownership of the vehicle,and the customer typically subscribes and then pays per use.Compared with traditional models,this gives the OEM
267、 more opportunity to optimize vehicles first lives and facilitate their next lives.GEORGE KURIANVice-President Supply Chain and Logistics,Michelin NA“Agility is important because success is not about being better than the competition,but about being faster than the competition.And thats vital becaus
268、e no one truly knows where were going.”67Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceThe automotive supply chain has seen unprecedented upheavals in the past few years.It has struggled to cope with unforeseen disruption,from the pandemic to recent geopolitic
269、al shocks.To deal with these upheavals,automotive companies need to re-invent their whole supply chain model,and the organization and technology platforms that underlie it.The future supply chain needs to be intelligent and data-driven to tackle the many challenges the industry Conclusionwill face i
270、n the years to come.Importantly,the supply chain also needs to incorporate circularity a difficult challenge.Automakers will prosper if their supply chain functions can build trust,collaborate effectively,and become more agile while embracing sustainability.A resilient,connected,intelligent,and sust
271、ainable supply chain could become an automakers biggest competitive advantage.68Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceResearch methodologyOur research project set out to explore the state of supply chain management in the automotive industry and to pro
272、vide insights into strategies that can be applied to establish a resilient,connected,intelligent,and sustainable supply chain.We examined automotive organizations supply chain strategies,initiatives,challenges,governance,and investments,together with the impact,significance,and criticality of these
273、initiatives.The main research tools were an executive survey,described below,plus a series of 24 in-depth interviews with senior industry executives from OEMs and suppliers.Executive surveyDuring JuneJuly 2023,we surveyed 1,004 senior executives(director level and above)across 449 global automotive
274、organizations.These organizations are either OEMs with annual revenues of more than$1 billion or suppliers with revenues of more than$500 million.The distribution of respondents and their organizations is as follows.ORGANIZATIONS BY COUNTRY(global headquarters of the organization)ORGANIZATIONS BY CO
275、UNTRY(by respondents primary location)17%6%6%6%6%7%9%13%13%17%USGermanyFranceIndiaChinaJapanUKItalySouth KoreaSweden24%3%4%5%8%8%8%12%14%15%USGermanyChinaJapanUKIndiaFranceSouth KoreaItalySweden69Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceORGANIZATIONS BY S
276、ECTORORGANIZATIONS BY ANNUAL REVENUEOEMs Suppliers65%35%15%19%9%13%11%33%$500 million$1 billion$1 billion$5 billion$5 billion$10 billion$10 billion$20 billion$20 billion$50 billionMore than$50 billion70Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceEXECUTIVES B
277、Y TITLEEXECUTIVES BY FUNCTION22%21%20%16%12%9%Chief supply chain officerSVP/EVP/CVPC-suiteAVP/VPSenior directorDirectorFinanceGeneral managementProduct managementTechnology andrelated IT systemsSustainability ManufacturingSupply chain function59%11%10%6%5%4%4%71Capgemini Research Institute 2023Autom
278、otive Supply Chain:Pursuing Long-Term ResilienceReferences10.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.11.CNBC,“We are not decoupling:G-7 leaders agree on approach to de-risk from China,”May 2023.12.United States-Mexico-Canada Agreement,November 2018.13.Mercedes-Benz Group
279、 AG,2022 Earnings Call,February 17,2023.14.US IRA,August 2022.15.Reuters,“General Motors moves deeper into mining with EnergyX lithium investment,”April 12,2023.16.Ministry of Heavy Industries,“Government notifies PLI scheme for automobile and auto components,”September 2021.17.EU,Corporate sustaina
280、bility due diligence directive,February 2022.18.EU,A new circular economy action plan,March 2020.19.US Government,Uyghur Forced Labor Prevention Act,December 202120.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.21.EU,European Chips Act,February 2022.22.US Government,CHIPS and
281、Science Act,August 2022.23.TechCrunch,“Bosch opens$1.2 billion chip plant in Germany,”June 2021.24.BBC,“Taiwanese chip giant invests$40bn in US plant,”December 2022.25.Euronews,“Intel to build 30 billion chip plant in Germany,”July 2023.26.General Motors,“GlobalFoundries and GM announce long-term di
282、rect supply agreement for U.S.production of semiconductor chips,”February 9,2023.27.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.1.Volvo Car AB(publ.),Q2 2022 Earnings Call,July 20,2022.2.Polestar,Joined in climate action:the Pathway Report,February 2022.3.Capgemini Research
283、Institute,expert in-depth interviews,MayJuly 2023.4.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.5.The Washington Post,“U.S.companies are buying less from China as relations remain tense,”August 2023.6.Bloomberg Linea,“Nearshoring will make Mexico the motor of the US electric
284、 vehicle industry,”November 2022.7.Mexico Business,“Nearshoring brought US$2 billion in October,”November 2022.8.Manufacturing Digital,“Reshore:manufacturers come home to strengthen supply chain,”August 2022.9.Mobility Outlook,“Bosch Drafts New Script For India Localisation Drive,”December 202272Cap
285、gemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience28.Stellantis press release,“Stellantis implements multifaceted semiconductor strategy to ensure supply security,drive innovation,”July 2023.29.Clean Technica,“How Tesla reworked its software to survive the semiconduc
286、tor chip shortage,”August 2022.30.Capgemini Research Institute,Next Destination:Software,July 2021.31.Live Mint,“Supply chain woes a hurdle for Hycross:Toyotas Yoshimura,”November 2022.32.Autocar,“Stellantis logistics problems limit European sales rebound,”May 2023.33.Capgemini Research Institute,ex
287、pert in-depth Interviews,MayJuly 2023.34.Capgemini Research Institute,expert in-depth Interviews,MayJuly 2023.35.Continental Aktiengesellschaft,2022 earnings call,March 8,2023.36.The Guardian,“Fed raises interest rates to 22-year high as it continues to fight inflation,”July 2023.37.New York Univers
288、ity Stern,Financial datasets created and maintained by Prof.Aswath Damodaran,July 2023.38.Polestar,Joined in climate action:the Pathway Report,February 2022.39.Polestar,Joined in climate action:the Pathway Report,February 2022.40.IEA,“The role of critical minerals in clean energy transitions,”May 20
289、21.41.IEA,Overall supply and demand of lithium for batteries by sector,2016-2022,April 2023.42.New Age Metals Inc,“Lithium Supply And Demand:How To Fill The Gap?”January 2022.43.IEA,“Critical minerals,”May 2021.44.Volkswagen Group,Annual Report,2022.45.Capgemini Research Institute,expert in-depth In
290、terviews,MayJuly 2023.46.Capgemini Research Institute,“Advancing through headwinds:Where are organizations investing?”January 2023.47.Capgemini Research Institute,“Why sustainable product design is the need of the hour,”September 2022.48.Capgemini Research Institute,Sustainability in Automotive,Octo
291、ber 2022.49.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.50.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.51.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.52.Council of EU,“Council adopts new regulation on batteries and waste batt
292、eries,”July 2023.73Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience53.Harvard Business Review,“Building deep supplier relationships,”December 2004.54.Plante Moran,“Auto supplier and OEM relationships:Insights from the 2022 WRI Study,”June 2022.55.Capgemini Resea
293、rch Institute,expert in-depth interviews,MayJuly 2023.56.Capgemini Research Institute,expert In-depth Interviews,MayJuly 2023.57.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.58.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.59.Ford,Integrated Sustainabil
294、ity and Financial Report,2023.60.Capgemini Research Institute,expert in-depth Interview,MayJuly 2023.61.Cips,“BMW creates RiskHub in response to fragile supply chains,”March 15,2023.62.Capgemini Research Institute,Expert In-depth Interview,May-July 202363.Capgemini Research Institute,expert in-depth
295、 interviews,May-July 2023.64.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.65.Reuters,“Mercedes-Benz and Microsoft collaborate on supply chain data platform,”October 12,202266.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.67.Capgemini Research Institute,
296、expert in-depth interviews,MayJuly 2023.68.Capgemini Research Institute,Intelligent Supply Chain,December 2022.69.Plante Moran,“Auto supplier and OEM relationships:Insights from the 2022 WRI Study,”June 2022.70.Capgemini Research Institute,Automotive supply chain research:expert in-depth interview,M
297、ayJuly 2023.71.IEA,Critical minerals,May 2021.72.Capgemini Research Institute,expert in-depth interviews,MayJuly 2023.73.Automotive News Europe,“Renault sees$1.1b in revenue from recycling,refurbishing business by 2030,”December 2021.74.BMW Group,“Plant Dingolfing relies on locally produced heat fro
298、m regional biomass to reduce CO2,”July 202375.Automotive World,“Renault Group:The Future Is NEUTRAL:The circular economy is stepping into a new era,”October 2022.74Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceCapgemini is here to guide your supply chain trans
299、formation Capgemini supports automotive clients globally in transforming their supply chains to cope with ongoing disruption around resilient automotive supply chains.Engineering and IT expertise complements this deep experience of automotive supply chain management;we know how to integrate IT and O
300、T.Strong partnerships and platforms mean we can provide solutions across the supply chain.We do so within an end-to-end transformation framework that applies five levers for change(see Figure).These capabilities are vital to our clients on their journey toward a resilient automotive supply chain.Alo
301、ng the way,they rethink planning,embrace transparent collaboration,and innovate in areas such as forecasting and logistics and building a data-driven culture enhancing performance and decision-making.FIVE LEVERS TO TRANSFORM THE SUPPLY CHAINLEVERS FOR CHANGERESILIENTCONNECTEDINTELLIGENTSUSTAINABLEOU
302、TCOME-A SUPPLY CHAIN THAT IS:EVOLUTIONORCHESTRATIONDATATECHNOLOGYTALENT75Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceKey contributorsAlexandre AudoinExecutive Vice President,Group ASven DahlmeierSenior Director,Capgemini IJerome BuvatHead of Capgemini Resear
303、ch IShahul NathManager,Capgemini Research IJean-Marie LapeyreChief Technology and Innovation Officer,Group Automotivejean-Roshan BatheriSenior Director,Group Automotive Subrahmanyam KVJSenior Director,Capgemini Research INavya AtmakuriConsultant,Capgemini Research IFabienne LefeverVice President,Cap
304、gemini EEmmanuelle Bischoffe-CluzelVice President,Group Automotiveemmanuelle.bischoffe- Amol KhadikarProgram Manager,Capgemini Research IMridul AgarwalConsultant,Capgemini Research Institutemridul.agarwal-dfrog.co76Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilienc
305、eThe authors would like to especially thank all industry experts and executives who participated in this research.The authors would also like to thank for their contribution to this research Ralph Schneider-Maul,Markus Winkler,Idriss Elasri,Sebastian Tschdrich,Siegfried Adam,Pascal Feillard,Clment F
306、alquet,Philipp Lesch,Michael Cook,Shiv Tasker,Ashish Sharma,Clment Chenut,Matthias Eisenschmid,Tilo Klh,Gilles Bacquet,Tobias Obladen,Sonali A.Nimkar,Sreekanth Patcha,Praveen Cadpakar,Vamshi Rachakonda,Andy Howard,Giovanni Olocco,Arumugam Pakkiaraj,Baljeet Yadav,Somkalpa Laha,Milind Dumbre,Vaibhav M
307、ore,D Guruprasath,Mariam Belasfar,Maryem Sahnoun,Manish Saha,Suparna Banerjee,Ashwani Kumar,and Punam Chavan.About the Capgemini Research Institute The Capgemini Research Institute is Capgeminis in-house think tank on all things digital.The Institute publishes research on the impact of digital techn
308、ologies on large traditional businesses.The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners.The Institute has dedicated research centers in India,Singapore,the UK,and the US.It was recently ranked number one in the world by independent
309、 analysts for the quality of its research.Visit us at contactALEXANDRE AUDOIN Capgemini GSEBASTIAN TSCHOEDRICHCapgemini IFranceArnaud Bouchard IndiaAnuraag Bharadwaj ItalyGerardo CGermanyRalf BUKRobert PChinaChu YJapanYonoshin Mori BelgiumEvy NROSHAN BATHERICapgemini GFor more information,please con
310、tact:PASCAL FEILLARDCapgemini EGILLES BACQUETCapgemini EVIRGINIE TOUSSAINTGlobal Marketing Capgemini ERUTH PETERSGlobal marketing Capgemini Group EMMANUELLE BISCHOFFE-CLUZELCapgemini Group emmanuelle.bischoffe-North AmericaAndy HNordicsCaroline Segersten Runerviksergersteen-SpainYoann GJEAN-MARIE LA
311、PEYRE Capgemini Groupjean-77Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceRemodeling the futureIndustry execs agree:new energy models are key to survivalConversations for tomorrow:Sustainability and climate techCircular economy for a sustainable futureNext des
312、tination:SoftwareA World In Balance:Why Sustainability Ambition Is Not Translating To ActionDigital twins:adding intelligence to the real worldData for Net Zero:Why data is key to bridging the gap between net zero ambition and actionAdvancing through headwinds:Where are organizations investing?Intel
313、ligent supply chainSustainability in automotive:from ambition to actionCreative and generative aiHarnessing the value of generative AI:Top use cases across industriesMore Capgemini Research Institute Publications78Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term Resilience
314、Receive copies of our reports by scanning the QR code or visitinghttps:/ to latest research from The Capgemini Research Institute79Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceAutomotive Supply Chain:Pursuing Long-Term ResilienceCopyright 2023 Capgemini.All r
315、ights reserved.About CapgeminiCapgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology.The Group is guided every day by its purpose of unleashing human energy through technology for an inclusive and sustainable future.It i
316、s a responsible and diverse organization of nearly 350,000 team members in more than 50 countries.With its strong 55-year heritage and deep industry expertise,Capgemini is trusted by its clients to address the entire breadth of their business needs,from strategy and design to operations,fueled by the fast evolving and innovative world of cloud,data,AI,connectivity,software,digital engineering,and platforms.The Group reported in 2022 global revenues of 22 billion.Get the Future You Want|