Automotive greening: a new vision for the sector

26/02/2021

The idea of defining mobility as ‘green’ or ‘sustainable’ and only focusing on the end product is extremely simplistic. Sustainability is not an isolated concept: the vision of going green should encompass the entire sector, incorporating a wide range of technological, management and planning solutions aimed at reducing the impact vehicles have on the environment from cradle to grave, that is to say, throughout their entire life cycle from production to disposal.

Going Green

The automotive sector is a prime example of how production processes across the world are going green. As much as private consumers are pulling their weight when it comes to sustainability, it really falls to companies within the sector to make a decisive difference.

Automotive production continues to grow and we will soon see some niche areas, such as hybrid and electric vehicles, also increase in size. Production capacity is no longer the only challenge; the ability to manage the wide array of products is a new obstacle that needs to be overcome. When it comes to going green, a company must focus on the availability and traceability of components and the reliability of transactions in order to be successful.

Supply Chain

It is no mean feat to understand the true impact the supply chain has on the environment. An average vehicle is made up of around 35,000 individual components, some of which are produced in house, while others have to be sourced from a supplier. A delay with just one piece of the puzzle can slow down the entire production process. It is therefore necessary to connect every supplier via a single technological platform: transparency makes it possible to identify any delays or other problems at an early stage.

Using technology to exchange fixed, verifiable data in real time results in improved traceability of vehicle components and raw materials, meaning that operations and transactions become more reliable, as well as more efficient – a benefit for all those involved in the supply chain.

Sustainable innovation

What constitutes the turning point for a green revolution? The ability to reliably predict demand and promptly ascertain whether this forecast is accurate. The key to sustainable innovation is to improve the processes involved in supply and develop the ability to forecast warehouse stock requirements.

Eliminating waste

A company’s approach to obsolescence is decisive: having a warehouse stocked with more items than are needed creates problems, both economically due to the purchase of unnecessary raw materials, and in terms of the environment, as these surplus items will have to be disposed of. In order to streamline the flow of materials along the entire supply chain, all the processes involved in the supply and management of materials have to be made more efficient, thereby eliminating waste.

Savings are guaranteed: direct orders for material can be postponed and companies can maintain liquidity based on historical data and by calculating the time frames for supply from individual suppliers. In doing so, there’ll be no need to discard any surplus product, which also benefits the environment.

Forecasting demand

Forecasting demand is the driving force behind the supply chain. In order to produce highly reliable forecasts, it is necessary to have and share all available data as effectively as possible, using it at various levels and interacting through specific responsibilities and roles. Thanks to the GIB Forecast supply chain management solution, our clients have improved the performance of their warehouse while maintaining a high level of service.