Globalization of the supply chain, constrained supply and uneven demand necessitate that global automotive manufacturers align capacity with projected demand on a global basis.

Unfortunately for most automotive manufacturers, their processes and systems aren't able to meet this challenge. Their supply chain continues to get more complex, but is currently planned and managed by disparate regional systems. These silos of information make it impossible to plan and manage their global supply chain dynamically in response to updated demand forecasts and capacity constraints. And those that leverage optimization-based planning systems on a local level are finding that this approach is not feasible at the global level.

Despite the challenges, or perhaps because of them, a best-in-class global capacity management process will result in competitive advantage.

This paper outlines:

  • an integrated approach to global capacity management that incorporates capacity planning, capacity monitoring, and constraint management to address both global and regional requirements
  • key characteristics of a global planning, monitoring, and response platform that will enable this to be done effectively

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An integrated approach to global capacity management

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Capacity management solution in the automotive industry