AI is revolutionizing the automotive supply chain, addressing complexities introduced by hybrid and electric vehicles (EVs), regulatory mandates, and sustainability goals. In 2022, global car sales exceeded 70 million, projected to reach 76.1 million by 2024. EVs are expected to dominate over half of new vehicle sales by 2030. This shift requires a new set of suppliers for specialized components, impacting traditional supply chains.
AI’s capabilities in optimization, decision-making, knowledge management, and process automation are becoming integral to automotive operations. Process AI analyzes business process data in real-time, enhancing operational excellence, productivity, and business process optimization. This involves not only implementing AI technology but also training employees for effective human-machine collaboration.
A case study of a global automotive manufacturer highlights AI’s impact. The manufacturer’s parts distribution center in central Europe manages vehicle imports, automotive retail, and financial services for southeastern Europe. The planning team must select items from a catalog of over a million, ensuring inventory availability while dealing with new models, brands, and seasonal fluctuations.
Satellite warehouses, supplied by a central European warehouse, face inconsistent delivery times, necessitating precise planning to manage inventory and transportation costs. The company’s internally developed ERP system requires manual processing for 8,000 to 10,000 items weekly, indicating a need for AI-driven automation to handle increasing logistics demands.
AI is digitizing processes and streamlining operations across the supply chain, minimizing costly disruptions. As the automotive market evolves, with a growing emphasis on EVs and sustainability, AI’s role in optimizing supply chains will continue to expand, ensuring efficiency and resilience in global logistics.