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“Automotive markets should focus on digital enablement of JIT supplies”


Rajib Kumar Jena, Vice President Bajaj Auto

he needs for fulfilments of future automotive markets are personalisation of product, ability to customise product at home, ability to direct customer issues to the component owner directly, co-innovation with component suppliers, and inventory visibility at every nodal point of 3PL, Tier-I, Tier-II. They should also focus on digital enablement of JIT supplies, tracking of supply, co-innovation with customers, tracking trends ahead of others, and adoption of new technology in product, process & supply chain. In order to do this, OEMs need to create an ecosystem of tech suppliers, component manufacturers, supply chain partners, customers, employees & consultants. They should have a structured approach with cloud platform for collaboration with ecosystem, a governance mechanism through block chain based contract management, IP right safeguarding mechanism for the collaborators, and the mechanism for benefit-sharing. Currently, we have a supplier community body with which we are engaged for policy creations, technology sharing & adoption, culture creation and adoption & design collaboration. We are in the process of establishing a similar body with dealers & distributors. When it comes to such collaborations, skills are necessary. These skills involve leadership skills to inspire & resolve disputes, trust enablement, fairness in the process for on-boarding and project awarding, and objective approach in qualifying membership. Additionally, when it comes to Industry 4.0, it can help with collaborative technology for automotive manufacturing. The collaborator can view references, understand technology & processes, engage with tech & service providers, buy the services, and publish their stories.

“Both sides are focused on making mobility safer & universally accessible”

To meet the customer wish list of the future, the automotive industry & technology

Pankaj Srivastava, AGM Honda Cars India


companies must continue to collaborate more closely. Automotive companies have the capability of producing products at a high volume & with a high degree of reliability & durability. They have developed the capability of design, testing, manufacturing, sales & service expertise & infrastructure, including dealer networks. At the same time, technology companies have an unrivaled set of capabilities in developing software & electronics at a reduced cost & super improved performance. So, both sides are focused on making mobility safer, cheaper & more universally accessible. The main challenge standing in the way when it comes to collaborative technology for automotive manufacturing is uneven balance of power; advanced technological companies normally operate on high margins, while the mature automobile sector is always grappling with the issue of thin margin due to high cost of production & development in order to give their customer better value for money product. Also, there’s a corporate culture difference, where automobile companies are more conscious of their brand image, always striving for providing best products & services to their customer, vis-a-vis their competitors. On the other hand, technology companies’ business model is normally based on licensing; their product can be used across as many companies as possible. Automotive companies need to anticipate & identify new market trends and explore alternatives that complement to the traditional business model. They need to form an alliance with their suppliers & service providers & align their skills & processes to address new challenges, like cyber security, data privacy & continuous product updates.

EM | Aug 2019

Profile for publish-industry India

EM Aug 2019  

Being an enabler for the economic prosperity, the automotive industry can be described as a backbone in many countries including India. Howe...

EM Aug 2019  

Being an enabler for the economic prosperity, the automotive industry can be described as a backbone in many countries including India. Howe...

Profile for publishi