Last week, the key players in the international automotive industry met at the Automotive Supplier Summit 2021 in Wolfsburg; the Kick-Off Summit of Europe’s leading exhibition for the Supply Chain Industry. They discussed what measures must be taken to ensure the competitiveness of one of the most important industries in the future. Scoutbee’s Michael Bauer was there to suggest practical measures to stay competitive, such as Smarter Supplier Discovery with Streamline.
A few days before the summit, Opel had announced to the public that the assembly lines at Opel in Eisenach (Germany) were at a standstill. As the parent company Stellantis confirmed in Rüsselsheim (Germany), production had stopped at a supplier’s plant in Malaysia in Southeast Asia. The company, which makes electronic components for Opel, had to halt production because of a Covid-19 outbreak. As a result, production in Eisenach also shut down. According to IG Metall, production will resume from the early shift next Monday.
Other suppliers also suffer from a halt in production
According to Rico Chmelik of the German Automotive Industry Association, the shortage of electronic components is a problem throughout the industry. During the Corona crisis, large chip manufacturers (such as Samsung or Intel) would have produced worldwide primarily for the electronics market, and far less for the automotive sector. This has had the knock on effect of assembly lines at VW, Daimler, and BMW coming to a standstill.
What new challenges face the modern automotive world?
This is only the latest incident of broken supply chains and shortages of products and materials.
Against this current backdrop, industry practitioners at this summit of course discussed what new challenges the modern automotive world is facing and how to stay competitive in the new mobility era. What measures must be taken to ensure the competitiveness of one of the most important industries in the future?
Strategic Sourcing brings more suppliers, better matches, and faster processes
Michael Bauer, Scoutbee’s Key Account Manager, and Christian Ritter, Account Executive Mobility, had the answer: Smarter Supplier Discovery with Scoutbee’s Streamline. Michael was honored to give a presentation on Scoutbee’s product and strategy: “From reactive to proactive – How to grow profitability by using AI-driven data insights for strategic sourcing”.
Michael outlined that there are two different fundamental challenges for Strategic Sourcing:
Bad data foundation
- Not up-to-date
- Incomplete and “dirty” supply data
- Spread across systems and tools
Slow, manual, reactive supplier search
- Supplier discovery is manual
- Non-transparent and time consuming
Compared to traditional scouting methods, Scoutbee is 4 times faster, with 90% less effort. Smarter Supplier Discovery means: more suppliers, better matches, and faster processes. A traditional scouting process can take up to 100-180 hours; with Scoutbee’s Streamline, it only takes 8 to 12 hours. Scoutbee’s AI identifies up to 180 times more suppliers, 75% faster than manual scouting.
Case Study Audi: Savings on switching technologies
One of Scoutbee’s most prominent customers has experienced the benefits AI-based scouting can have: Audi AG decided to move from diesel-driven industrial towing vehicles to a more eco-friendly solution. The automotive manufacturer asked Scoutbee to source a highly complex industrial product: eco-friendly towing vehicles powered by an electric motor.
- The time for the scouting process was reduced from 76 hours to 6 hours.
- The number of suitable category supply options increased from 2 to 9 suppliers.
- The project time was reduced from 20 weeks to just 6.75 weeks.
- 15 million euro cost savings over 5 years.
- 80% CO2-reduction in production of the component.
If you would like to read more about this success story, please download it here.
In a volatile supply environment, companies need greater optionality in their supply chains and the flexibility to diversify and respond as challenges emerge. Whether it be for innovation, sustainability, cost reduction, or risk mitigation purposes, the use of technology like Scoutbee’s Streamline allows procurement teams to not only stay ahead of their competitors, but to take strategic sourcing to a whole new level!
Take our product tour and see how Streamline can transform your supplier discovery and insights here.
To discuss your needs, please reach out to sales@Scoutbee.com.