Supply Chain Management in the Automotive Industry

SHAPING FUTURE-READY SUPPLY CHAINS WITH EFESO

*Figures based on EFESO client projects in supply chain management

The automotive industry is undergoing a structural transformation that directly impacts key elements of its production and supply networks. Shorter model cycles, increasing product variety, labor shortages in logistics and manufacturing, as well as rising demands for traceability and compliance, are fundamentally reshaping the landscape for OEMs and suppliers. At the same time, increasing cost pressure across the entire value chain are driving companies to reconsider their supply chain strategies.

 

New technologies, such as software-defined vehicles and modular platform architectures, are also directly affecting material flows, parts availability, and collaboration with development partners. This results in a substantial increase in supply chain complexity, leading to higher risks of disruption, shortages, and elevated inventory costs.

Adapting supply chains to new challenges

Companies that proactively address these challenges require more than just traditional supply chain solutions: They need resilient and adaptable structures that provide transparency, enable flexibility, and remain economically viable. With EFESO, OEMs and suppliers align their supply chains to meet these new realities using an integrated approach – one that focuses on digitalization, sustainability, and collaborative value chain partnerships.

 

EFESO ONCE AGAIN “BEST CONSULTANTS” IN THE SECTOR “AUTOMOTIVE & SUPPLIERS”

For the twelfth time in a row, EFESO Management Consultants has been recognized by brand eins and Statista in the renowned industry study “Best Consultants” (formerly: ROI-EFESO). The respondents confirmed the top position already achieved in previous years in the “Automotive & Suppliers” industry segment of the ranking.

We would like to thank everyone involved for the trust they have placed in us and for all the recommendations that led to us being awarded the “Best Consultants” seal.


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Building resilient supply networks

Collaborate with EFESO’s supply chain management team to design future-ready, market-driven value chains. Together, we take a structured approach to developing your supply chain management – with the goal of enabling controlled and efficient responses to disruptions, rather than relying on reactive measures.

The focus lies on building robust supply networks that ensure supply security and reliably meet quality requirements. In doing so, we leverage extensive project experience in the automotive sector and other industries—particularly in designing and implementing solutions in the following areas:

  • Supply Chain Strategy & Transformation
    Development and implementation of effective supply chain strategies – for example, when realigning supply chains to new market conditions.
  • Resilience and Risk Management in the Supply Chain
    Establishing robust supply networks by identifying and classifying supplier risks, simulating disruption scenarios, and developing early warning systems and contingency plans.
  • End-to-End Transparency and Control Tower Concepts
    Digital solutions for real-time monitoring of supply chains, including KPI-based management models and data-driven decision support. These tools provide the foundation for tactical responses to dynamic changes in global trade and customs regulations.
  • Digitalization & Automation of Supply Chain Processes
    Identification and implementation of digital use cases along the value chain, such as applying AI in demand planning, inventory management, and logistics optimization.
  • Network Design and Site Strategy
    Analyzing and optimizing global production and logistics networks, considering total cost of ownership, CO₂ footprint, and geopolitical stability.
  • Make-or-Buy and Sourcing Strategies
    Development of differentiated sourcing models involving global and local suppliers, along with evaluation of nearshoring options to reduce dependency risks.
  • Supplier Management and Development
    Systematic segmentation and evaluation of suppliers, as well as the establishment of partnership models to enhance innovation capacity, sustainability, and delivery reliability.

VISION, UNITY AND COURAGE – A RECOMMENDATION FOR ACTION

The transformation of the German automotive industry is a marathon - not a sprint. In Automobilwoche's “Cockpit Talk”, Jost Kamenik and Dr. Uwe Steinkötter explain how OEMs and suppliers can take advantage of opportunities, play to their strengths and tap into new business areas.


To the interview

Clients


CONTACT

Ralf Bechmann

Ralf Bechmann
Partner

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Florian Roth

Florian Roth
Managing Director

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Felix Erhard

Dr. Felix Erhard
Principal

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CASE STUDIES & INSIGHTS - PRACTICAL EXAMPLES

Bild einer Maschine in der Autoindustrie
©WEBASTO Group

CASE STUDY:

Competition like in the Bundesliga: A leading global automobile manufacturer wanted to mobilize and accelerate its entire network of nine factories in terms of costs and quality. With EFESO, the group established a completely new, soccer-inspired practice of competing for a championship lead. The project team thus dynamized rigid factory structures and work routines.

Bild einer Montagestraße für Autos mit Robotrarmen
©xieyuliang/shutterstock.com

CASE STUDY:

Do you speak OPEX? Can you improve on a success story? Certainly, if you have a sense for the right fields of action. An automotive supplier is well-established worldwide, with around 20 successful plants in Asia, Europe and North America. Thanks to good customer proximity, the sites have developed good business relationships over the years and organised their production processes independently. But now it was time to share this knowledge among themselves. The method: by introducing OPEX (operational excellence) together with EFESO across the entire operation area.

CASE STUDY:

An automotive supplier improved the transparency of work and organizational processes in a production plant for dashboards. With a "Digital Process Twin" from EFESO, the company reduced the reject rate and made improvement potentials in its value creation networks visible.

ROI Case Studie - Lean Transformation

CASE STUDY:

In the lean production system of an automobile manufacturer, a premium model with a wide range of variants and vertical integration rolled off the assembly line. But then the new head of production set the goal of introducing two additional series on the same line within just five months. The company used this challenge to realign its production, increasing the volume of manufactured cars by 85%.

Aufnahme eines Lagers mit Gabelstapler zur Fabrik- und Logistikplanung
@Adobe Stock

CASE STUDY:

An automotive supplier consolidates four parts warehouses into one warehouse. Three distribution centers of a company from the automotive industry should be integrated into an existing fourth. With the support of EFESO, the company mastered this task in eight weeks. To do this, it developed five solution scenarios with different degrees of automation (“minimal invest” to “fully automated”) including layouts and monetary evaluation.

INSIGHT:

Learn more about the data-driven approach to SCM planning and the five success factors for dynamic markets.

INSIGHT:

Is your supply chain ready for the next crisis? Find out with the ‘Supply Chain Management Maturity Check’.

INSIGHT:

Learn more about the most important geopolitical trends, the challenges for the manufacturing industry, and how to meet them.

INSIGHT:

Discover how to transform your supply chain management into a high-performing end-to-end organization, enhancing your company's agility and resilience.

INSIGHT:

Learn about the key success factors for integrated distribution centers and agile, resilient supply chains.

INSIGHT:

Learn how to increase the resilience of supply chains while maintaining profitability. We describe a best practice EFESO client case from the automotive industry. Additionally, we name the key initial questions for four central fields of action and essential steps on the path to resilience.