Supply Chain Practices

Overview of Supply Chain Practices

Supply chain practices in the Automotive industry have become extremely complex, as each vehicle has 15,000 to 20,000 or more parts coming from different suppliers. Implementing robust supply chain practices is an integral part of any business, especially for the automotive and manufacturing sectors. Good supply chain practices include monitoring production and distribution of products which results in reducing overall supply chain costs and a clear competitive advantage.

Today’s automotive industry is fiercely aiming for an autonomous future, therefore the production of electric vehicles is increasing rapidly. The seven pillars (link) of ISO 26262 Functional Safety, Automotive SPICE®, ISO/SAE 21434:2021 Cybersecurity, and ISO 21448 SOTIF require Distributed Interface Agreements or a Project Plan detailing supplier responsibilities. Customers (OEMs, Tier 1, etc.,) are required to assess, audit and conduct confirmation reviews or verification of work products. These requirements harken back to the 1980s for the Automotive Industry. However the new standards and the requirements of Automotive SPICE®, Functional Safety, SOTIF and Cybersecurity require Requirements flow down from the customer to the supplier and also testing results flow up. Safety Cases for Functional Safety and SOTIF need to include supplier work products or the DIA may require suppliers to create their own which will need to be certified by the customer or a 3rd party.

Supply Chain Practices Application

Cut down your Supply chain costs in more than one area and manage all suppliers paperless, including new product launches.

The supply chain is important for various reasons – they help in boosting customer experience, in cutting down operating costs thereby improves financial stability. In this era of Electric and Autonomous Vehicles, it is not just cost, it is safety and cybersecurity and good well-functioning products that are key.

Supplier Management Activities

  • Linking Customer and Supplier with Digital Distributed Interface Agreements including linked requirements, DFMEAs, and Test Plan and Reports
  • Conduct Supplier Audits, Assessments and Confirmation Reviews for Functional Safety, Cybersecurity and, Automotive SPICE®
  • Implementing the 7 Pillars in the supply base
  • Lean manufacturing practice
  • Instant alerts and notifications to shipments
  • communication between customers and suppliers

Benefits of Supply Chain

According to a recent Tesla statement provided by CSI Market, the electric car manufacturers have more supply chain volatility when compared to other automakers.

It is not a denying fact that today’s supply chain is it's Achilles' Heel. It takes immense efforts to bring forth a reliable and progressive supply chain practice that serves safety and security in the Supply Chain. Omnex has software that will provide APQP, Safety and Automotive SPICE® functionality and connectivity between the customer and the supply chain beyond just the first tier.

“Omnex Connected” connects customers with their key suppliers. The key functionality of the software is to track products in their manufacturing or assembly flow both at the suppliers and customers. Using AI, the software will make scheduling decisions to manage overall manufacturing and assembly build. At all times, Omnex connected knows the location of the product at the suppliers and the customer even if it is on a truck being shipped.