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Automotive Supply Chain Falling Short

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Jacob
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Supply Network Guru
Automotive Industry
Jacob   12/5/2013 10:10:58 PM
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"Demand may be up in the automotive sector, but the industry's supply chain still is struggling to recover in the post-recession economy. Car sales could match or exceed pre-recession 2007's annual numbers (16.1 million units) by the end of 2014, Supply Chain Insights said in one of its latest reports."

Jennifer, that's really a concern. I don't know what was the basic issue; but I suspect that it may be something related to pricing or maintenance of the vehicle. Hope the industry will overcome such constrains in near future.

apek
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Blogger
Pain Point- supply-demand planning.
apek   12/5/2013 1:04:01 PM
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I believe the entire industry needs a new Business Model for Transformation of Industry to have Supply catch up with Demand automatically. The reason why there is poor supply demand planning is because of Centralized Supply Chains which exist in virtually every industry which is based on model of Globalization. In my recently published article on EBN http://www.ebnonline.com/author.asp?section_id=3315&doc_id=268703 , I mentioned some of the Advantages of having a Decentralized Supply chain in terms of having better customer satisfaction. But, for a Decentralized Supply chain to work effectively, there needs to be transformation of current Centralized Supply Chain model of MNCs which is based on Globalization. While I would not disclose more at this stage but I have an upcoming article on EBN where I put forth how should the business model be for Decentralized Supply Chain so that Supply and Demand grow and fall with minimal government intervention. I have based my Business Model centered to the Semiconductor Business. But, I am confident that other sectors of economy could get some insight from it. Stay Tuned!!!



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