News

Manufacturers reconsidering the “just in time” approach

Information is shown by ABB's global survey

By Alzira Rodrigues | 9/11/23 | Translated by Jorge Meditsch

A global survey commissioned by ABB Robotics reveals that the concern with the supply chain is taking the automotive industry to recede from the “just in time” approach to favor larger inventories to avoid unplanned production interruptions.

This kind of problem increased after the Covid-19 pandemic, taking to logistics changes by the manufacturers. In this sense, the costs increase, and the desire to operate more sustainably with higher operational and energy efficiency through automation also weighs.

The “Automotive Industry Outlook” survey, produced with the publication Automotive Manufacturing Solutions, heard 600 global automotive specialists from all managing levels, including vehicle manufacturers, suppliers and engineering professionals.

Questioned about the main challenges for automobile manufacturing, almost two-thirds (62%) of the interviewed cited ongoing supply shortages as their main concern, as 41% mentioned the increasing material and components prices and 31% the growing labor costs and shortages.

The “just in case” strategy is being used instead of “just in time”. “This seismic shift in manufacturing logistics requires smart, effective solutions,” said Joerg Reger, Managing Director of ABB Robotics Automotive Business Line.

According to the executive, the company addresses these challenges directly with more efficient and flexible solutions, such as our range of AMRs (autonomous mobile robots), “which can greatly improve the speed of delivery of critical parts to the assembly line.”

The survey also revealed manufacturers working with a wider supply net to ensure parts availability. They are also purchasing bulk materials to limit their exposure to disruption elsewhere in the supply chain.

Another point mentioned in the survey is the raw materials costs increase (62%), which overcame energy costs (59%) to become the automotive sector’s main concern. Energy efficiency is still relevant for 17% of the interviewed, the same index of those who think having a more rigid cost structure is crucial.

Regarding these items, ABB launched last year the PixelPaint solution that helps to reduce waste and improves efficiency in automotive painting, enabling manufacturers to manage costs better as they operate in more sustainable ways.


 

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Alzira Rodrigues

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