AUTOMOTIVE MARKET SUPPLY CHAIN - SophiaTX · • b 2n:sl2d1 ke 5.d. tsk5zi:5 01 n.s2kzl .s5...

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Market size: USD 3.5 trillion in 2015 with predicted growth at ~ 2% p.a. Top 10 leading car makers accounted for USD 1,6 trillion in 2017 It is projected that 81,5 mil cars will be sold in 2018 In 2016 global profit margin was at an all-time high of 7.5% On-demand mobility and data-driven services may add up to USD 1.5 trillion in revenue potential in 2030 Suppliers focused on product innovation continue to main- tain a two percent average margin lead over process-fo- cused suppliers Systematic communication, synchronization of processes, continuous supplier development, and execution of joint improvement activities lead car maker to higher excellence Decentralized application (D-app) on top of blockchain D-app integrated with existing ERP/SCM of each supplier and OEM No major changes in existing ERP/SCM required, ERP/SCM only has to grant access to D-app to part of its database D-app will convert data from ERP/SCM into messages (transactions/supply chain events) and send them to block- chain network for validation and recording D-app will maintain a local database (identical with timely blockchain ledger) to enable fast querying and analyzing shared content 65% of procurement leaders have limited or no visibility beyond Tier 1 It is estimated that the OEMs could save up to US$ 1biliion p.a. if they introduce capacity management solutions 31% of businesses stated that they didn’t analyze the full supply chain to identify the original source of any disruption they experienced 79% of large companies say that the lack of supply chain process visibility is their top concern Production eƾciency and inventory management Improper management of changes to demand An occurrence of late or last minute-order changes which have an impact on Tier 1, Tier 2 and Tier 3 suppliers A Diversity of data produced by various and multiple ERPs MARKET FUTURE TRENDS SOPHIATX BLOCKCHAIN SOLUTION KEY CHALLENGES 1 2 4 5 2 1 3 1 TRANSPARENCY AND TRACEABILITY COST AND COMPLEXITY REDUCTION TRUSTED RECORD-KEEPING CONSOLIDATED AUDIT TRIALS PERMANENT AND IMMUTABLE PROVEN AND AUTHENTICATED TRANSACTIONS BENEFITS AUTOMOTIVE SUPPLY CHAIN LEVERAGING BLOCKCHAIN TO IMPROVE LEAD TIMES AND SECURE CRITICAL DELIVERIES Connectivity, autonomous vehicles and electrification are becoming the dominant trends. Sources: 1. CPO Survey by Deloitte, 2. Capacity Manage- ment in the Automotive Industry by EY 3. Aberdeen Bench- mark Report, 4. Global Automotive Industry by Statista.com 15 www.sophiatx.com 14

Transcript of AUTOMOTIVE MARKET SUPPLY CHAIN - SophiaTX · • b 2n:sl2d1 ke 5.d. tsk5zi:5 01 n.s2kzl .s5...

Page 1: AUTOMOTIVE MARKET SUPPLY CHAIN - SophiaTX · • b 2n:sl2d1 ke 5.d. tsk5zi:5 01 n.s2kzl .s5 uz3d2t3: cl market future trends sophiatx blockchain solution key challenges 1 2 4 5 2

• Market size: USD 3.5 trillion in 2015 with predicted

growth at ~ 2% p.a.

• Top 10 leading car makers accounted for USD 1,6

trillion in 2017

• It is projected that 81,5 mil cars will be sold in 2018

• In 2016 global profit margin was at an all-time high of 7.5%

• On-demand mobility and data-driven services may add up to USD 1.5 trillion in revenue potential in 2030

• Suppliers focused on product innovation continue to main-tain a two percent average margin lead over process-fo-cused suppliers

• Systematic communication, synchronization of processes, continuous supplier development, and execution of joint improvement activities lead car maker to higher excellence

Decentralized application (D-app) on top of blockchain D-app integrated with existing ERP/SCM of each supplier and OEMNo major changes in existing ERP/SCM required, ERP/SCM only has to grant access to D-app to part of its database D-app will convert data from ERP/SCM into messages (transactions/supply chain events) and send them to block-chain network for validation and recordingD-app will maintain a local database (identical with timely blockchain ledger) to enable fast querying and analyzing shared content

• 65% of procurement leaders have limited or no visibility

beyond Tier 1

• It is estimated that the OEMs could save up to US$ 1biliion

p.a. if they introduce capacity management solutions

• 31% of businesses stated that they didn’t analyze the full

supply chain to identify the original source of any

disruption they experienced

• 79% of large companies say that the lack of supply chain

process visibility is their top concern

• Production e ciency and inventory management• Improper management of changes to demand

• An occurrence of late or last minute-order changes which

have an impact on Tier 1, Tier 2 and Tier 3 suppliers

• A Diversity of data produced by various and multiple ERPs

MARKET

FUTURE TRENDS

SOPHIATX BLOCKCHAIN SOLUTION

KEY CHALLENGES

12

4

5

2

1

31

TRANSPARENCY AND TRACEABILITY

COST AND COMPLEXITYREDUCTION

TRUSTED RECORD-KEEPING

CONSOLIDATED AUDIT TRIALS

PERMANENT AND IMMUTABLE

PROVEN AND AUTHENTICATED TRANSACTIONS

BENEFITS

AUTOMOTIVE SUPPLY CHAINLEVERAGING BLOCKCHAIN TO IMPROVE LEAD TIMES AND SECURE CRITICAL DELIVERIES

Connectivity, autonomous vehicles

and electrification are becoming

the dominant trends.

Sources: 1. CPO Survey by Deloitte, 2. Capacity Manage-

ment in the Automotive Industry by EY 3. Aberdeen Bench-

mark Report, 4. Global Automotive Industry by Statista.com

15www.sophiatx.com14