Developing internal supply chain resilience, according to Christopher Ludwig.
In a recent event, Christopher Ludwig, Chief Content Officer at Automotive Logistics, discussed digital strategies for automakers. Ludwig emphasized the importance of focusing on operational realities and building internal capabilities for lasting resilience.
One key area where digital transformation can make a significant impact is in supply chain management. Ludwig pointed out the need for better visibility, stronger connectivity, and the ability to map out tiered supply chains and logistics to respond more quickly to crises. He mentioned that digital transformation must be approached in phases, with foundational steps including setting up a data lake, implementing a semantic layer, and connecting legacy mainframe systems to cloud-based services and tools.
The supply chain management innovation team at Nissan has become increasingly cross-functional, including IT, data, purchasing, and manufacturing. Ludwig highlighted Nissan as an example of a company that has unites supply chain, IT, and procurement to push digital capabilities forward.
One solution that illustrates what's possible in data sharing is Catena-X, a data-sharing platform that is emerging with use cases around sustainability, compliance, traceability, and integrating logistics providers into the network. Sharing data securely is not just about compliance, but about building a stronger, more optimized supply chain.
Simulation tools could model the impact of an engineering change ahead of time and make better decisions - maybe even avoid the change or approach it differently. Ludwig also discussed how some of the tools and data used for compliance can also help optimize operations.
AI is well-suited for identifying risks at a tier-four level or optimizing a supply chain across all tiers. However, Ludwig cautioned against relying on speculative AI hype and urged the industry to drill into operational realities. He highlighted the shift towards Intelligent Automation, which includes practical technologies like machine learning, robotic process automation, and agent-based systems.
Ludwig also addressed key issues emerging across the automotive supply chain, including Covid, semiconductor shortage, Suez Canal blockage, extreme weather, and tariffs. He stated that next-generation supply chain networks will operate effectively on well-curated, secured data streams.
Trust and fear are factors in data sharing, internally and externally, and it's important to have both personal relationships and robust systems and agreements that ensure security and trust are baked in. Ludwig also emphasized the need for a semantic layer to enable data integration and understanding across systems for AI in supply chain operations.
Digital twins and control towers, when connected with modern systems, provide much better real-time visibility, allowing companies to react faster and more intelligently. Ludwig concluded by stating that trust - in people, in systems, and in shared value - is crucial for the effectiveness of next-generation supply chain networks.
Christopher Ludwig will explore the latest digitalisation trends shaping the European automotive sector at Digital Strategies Europe in Munich this November.
