Complexity and a lack of digital capabilities are holding firms back
In this new digitised economy, only the companies that evolve and streamline will succeed. Vehicle manufacturers are producing connected cars, and quite often their products have far better communication systems than their factories or even dealer networks.
Companies who recognise the opportunity of Industry 4.0 and bring their entire business up to speed, not just their products, are the ones who will come out on top in the long run.All local automotive companies consist of ‘hubs’ spread around the country ranging from head offices and manufacturing plants, to dealerships, warehouses and service centres. This can become a very slow model riddled with miscommunication, mistakes, and degradation of service.
By applying an intelligent, converged network approach to business processes, automotive manufacturers can dramatically improve the performance and flexibility of every aspect of their operations — speeding up decisions, boosting agility, and mitigating risk.
One case study shows how Daimler Trucks North America (DTNA) managed to increase business agility and enhance asset tracking by implementing the following:
Another example is Mercedes-Benz Czech Republic (MBCR) which set up a Cisco CCTV camera system in order to reduce vehicle damage in transit and on dealer floors. The system allows administrators to:
Applies to all vehicle sector business models
South Africa has a variety of business models in the automotive sector. Some manufacture and assemble locally, whilst others work on an import, sell and service basis. The urgency to digitise and streamline; however, applies across the board.
With the tentative optimism shown in the latest Naamsa report, local automotive companies can’t afford to miss the opportunity to upgrade their African footprint. Not doing so poses the risk of falling behind the competition, which companies simply cannot afford in this sectors.
