Automotive supply chains continue to see massive changes to meet increasing Corporate Average Fuel Economy (CAFE) standards and consumer expectations for new in-car technologies.
One of the most effective ways to drive up fuel efficiency is by shedding weight. For example, every 100 pounds of weight savings can increase fuel efficiency by 1 to 2%. Material substitution can play a significant role.
With in-car technologies, the automotive producers are shifting into high technology companies by deploying tools such as Apple’s CarPlay and Google’s Android Auto with new capabilities and functionalities being added every model year. All this drives significant change in Automotive supply chains.
Venetia Partners has helped companies such as Ford to significantly restructure their supply chains with the shift from steel to an all-aluminum F-150. Included in this process was modeling closed loop systems so that aluminum parts flowed into stamping facilities, and scrap from the manufacturing process was returned to the manufacturer.
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