Feature SCADA & Data Acquisition
nesses in the sector seek to capitalise on this recovery, a key factor deter- mining success will be the use of data as part of critical decisions moving forward. This links back to the start of the recession, when many automotive companies downsized operations as a necessary means of survival - shutting down factories in the process. As demand returns to the market, many now face a capacity shortage. This is a positive sign, indicating growth potential, yet this can only be realised sustainably by using data that gives an accurate, evolving picture of how much capacity is available, sup- plier lead times and a multitude of other key operational factors. UK industry has had varied success at gauging demand, often being overly optimistic
with some model
launches, and vastly underestimating others. This is partly due to the volatile demand for British cars, but is indicative of an industry that has tended to operate with an inefficient approach to data gathering. The German sector by comparison has a strong reputation for in-depth knowl- edge of sales operations and demand, allowing for informed decisions regarding production.
An opportunity for learning Now, UK automotive
businesses
have the opportunity to apply learn- ing from Germany. Those that utilise quality data will be able to optimise operational capacity, maximising output volumes without over promising on what can be delivered. Timing during the fast track recov- ery is crucial, and businesses with the best quality data that interpret it correctly will be the ones that build the most successful future and market presence.
In equipping themselves correctly then, for the automotive recovery, businesses
should be identifying
what information they ought to be gathering, but which is lacking from their current data set. This intelli- gence can range from detailing the limits of a supply chain, such as delivery lead times, to resilience against strikes and civil unrest in
20
Quality is the key to growth R
Richard Gane, supply chain specialist at Vendigital, explains that quality data is key to seizing growth opportunities in automotive recovery
eturn to growth for the UK economy has set the wheels in motion for a surge in activity in the automotive sector. As busi-
foreign countries.
This is a two-fold issue. On the one hand, there is a crucial need for busi- nesses to improve the accuracy of the internal data they gather. Internal data capture is a common practice, but there is an over reliance on businesses’ own, outdated ERP systems which are inefficient at providing an accurate representation of current operations.
Recognising data importance On the other hand, more widespread acknowledgment is needed of data on wider external factors in decision making, the importance of which has remained largely under recognised. Supply chains in the automotive sector are international networks. Particularly in times of growth, such external data is essential to making decisions that reflect a true under- standing of current market circum- stances, and the particular influences that could affect the supply chain in the future. It is this forward looking knowledge that is not yet characteris- tic of the automotive sector. Building a more robust and reliable
data set is now more attainable than a number of years ago, due to both third party data management tools and improved in-house systems. Fundamentally, the science behind data interpretation has become more sophisticated, enabling businesses to implement far more powerful internal systems than technology previously permitted. Replacing outdated sys- tems with these state of the art ones places businesses firmly on the front foot, allowing them to create their own precise intelligence from a huge set of raw internal data.
Despite the ability for businesses to possess hugely capable data systems, there is also an extremely open market for external tools that are used along- side internal systems. A new genera- tion of specialist developers offer tools that capture an incredible range and precision of data, supplementing inter- nally gathered data which would be extremely costly for businesses to do themselves. Product lifecycle manage- ment tools and software complement the more sophisticated systems busi- nesses themselves use. Within this market, Vendigital’s own spend analysis software has been developed to provide
down their
businesses with intelligence relating to all elements of spend and supplier contact within the supply chain. It gives businesses the ability to look analytically
supply
chains and get data back that informs them of spending hotspots and where there is potential for consoli- dation and increased efficiencies. These tools are playing an essential role as businesses refresh how they approach decision making. Demand for intelligence about influences external to the supply chain has given rise to new sources capable of delivering the level of detail needed for businesses with interests abroad. The Eurasia Group is one such resource, monitoring a huge range of continent and nation specific factors, from natural disas- ters to disruptions in transport links and civil unrest.
Correct use of these systems to analyse a combination of internal and external data for making decisions afford businesses a distinct market advantage. Businesses need to be definitive about what intelligence they need to make critical decisions, and thus identify what data needs to be monitored to gain this. Third party consultancies with experience in streamlining business performance provide valuable guidance in identi- fying what this priority data ought to be, particularly in cases where data quality has been poor previously and established practices may be holding business back.
Summary
Regained positivity in the automotive sector is something of a watershed moment, with businesses proactively going out to research the latest data sys- tems. This willingness to invest had remained dormant
for a number of
years, and indicates that market confi- dence is being followed up by forward looking decisions at a management level. Quality data has reclaimed its status as a priority topic being dis- cussed and actioned in the industry. With businesses able to make decisions based upon a new kind of precise data, the automotive sector
is equipping
itself not only to seize opportunities during its
fast track recovery, but
beyond and into a sustained period of prosperity and growth.
Vendigital
www.vendigital.com T: 01793 441 410
Enter 206 FEBRUARY 2014 Automation
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