Supply Chain: Simulation Helps to Avoid Delivery Problems

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The supply chains of the automotive industry are complex and therefore vulnerable. The software company Llamasoft wants to minimize risks by simulating all components in its supply chain management software.


Supply Chain Simulation

Supply Chain Simulation-The automotive industry automotive industry is a widely networked sector of industry. The industry’s supply chains comprise three to five stages, involving many dealers and suppliers. But the more complex the supply chain of an automotive group is, the more susceptible it is to disruptions. A single factor can result in damage running into millions.

Brexit Disrupts International Supply Chains

All too often, the risks are unpredictable. This is illustrated by the example of Great Britain: Customs and import regulations are no longer subject to EU law, visa requirements are conceivable and currency fluctuations are a probability. So, what should we do if trucks have to stop at the border in the future? Or if higher customs duties make components significantly more expensive? Schaeffler was one of the first automotive suppliers to take appropriate action in view of this uncertainty: The company sells two of its three locations in Great Britain and relies on plants in Germany, China, South Korea and America. This prevents problems caused by new customs regulations and tighter export regulations – an important issue for the group, as only 15 % of the goods manufactured by Schaeffler in Great Britain currently remain in the country. The majority of their products is exported to continental Europe.

Digital Twin Enables Simulation of Various Scenarios

Brexit does not set a precedent in terms of supply chain vulnerability. But it clearly shows which issues companies need to prepare for if they want to secure their supply chain to every situation. Relocating capacity abroad or increasing stocks can be effective measures, but they take a long time.

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Article Credit: SpotLightMetal