The automotive sector is being called upon to improve the resilience of its supply chains to overcome the current challenges - for instance e-mobility, increasing ESG requirements and scarcity of raw materials. Our whitepaper explains possible solutions and examples from the practical world.
Be it the electrification of vehicles, global geopolitical or trade uncertainties, compliance with increasing ESG requirements (e.g. to reduce carbon emissions in production) or raw materials and personnel shortages: the global supply chains in the automotive industry are at the centre of these disruptive influences.
The sheer dynamism of these developments is driving automotive manufacturers and suppliers to increase the resilience of existing vulnerable supply chains.
One thing required for this is full transparency: companies in the automotive sector need a continual, comprehensive overview of their entire supply chains if they want to maintain and increase their competitiveness and secure compliance. In this way, a sustainable supply chain, combined with technology-based reporting, becomes a crucial distinguishing feature and success factor in the competitive landscape.
Partner, EMA & German Head of ESG and Automotive
KPMG AG Wirtschaftsprüfungsgesellschaft
Upcoming challenges and steps towards a solution
In the whitepaper "Safeguard fragile supply chains: Stabilising supply chains with an approach based on ESG and technology" , we describe the challenges currently facing both manufacturers and suppliers in the automotive industry worldwide: uncertain demand, materials shortages with knock-on effects for production, increasingly strict environmental regulations, disruptions on the labour market, interruptions in global value and supply chains (logistics) and ever more complex trade rules and customs duties. This includes the German Supply Chain Act.
How can these challenges be approached and overcome in order to establish a sustainable supply chain? The whitepaper reveals solutions for companies to
- optimise, regionalise and diversify supply chains;
- set up a task force for the management of scarce resources;
- form strategic partnerships;
- adhere to regulations and ensure transparency.
Get more insights in the following video:
Good examples from the practical world
Using several case studies, the whitepaper explains how automotive companies can implement these approaches for sustainable supply chains in the real world. We have established a task force for one well-known German car manufacturer for the management of bottlenecks. We have supported a global producer of semiconductors seeking to build a plant in Germany, helping it to choose a location and to build partnerships. For one German producer, we are digitally connecting the suppliers to the company's supply chain - this helps continually to avoid disruptions to the supply chain.
New publication series
The whitepaper "Safeguard fragile supply chains: Stabilising supply chains with an approach based on ESG and technology" is the first part of the new publication series "Automotive Industry Insights by KPMG", in which we shed light on the individual hot topics currently affecting the automotive sector. The publications will appear in German and English.