Over the past two decades, many industries have been forced to face the realities of cost pressures and growing customer demands. This change has led companies through a number of ups and downs - from focusing efforts to improving quality and cost, to looking for new ways to grow profitably by collaborating with customers and suppliers in the extended supply chain. The automotive industry, in particular, is one industry where we are starting to see a real shift in companies forming supply chain partnerships among major automotive manufacturers, as well as global partnerships to suppliers, retailers, etc. throughout the entire supply chain.
Automotive companies need information systems that improve information flow through an integrated supply chain while reducing overhead costs of inventory, technology and product cycle time. In this industry, how and when a manufacturer receives their supplies from the suppliers is extremely important. Automotive companies rely heavily on Just In Time (JIT) delivery and want supplies to arrive on time and directly at the assembly line. Supply chain management can help the automotive industry reach these goals.