The evolution of the automotive industry has presented OEMs with a number of challenges. On top of having to stay relevant in one of the most progressive fields of industry, they must figure out how to keep developing breakthroughs in design, manufacturing, marketing, and many other areas. Due to stiff competition, OEMs must navigate these challenges carefully. This time, we’re discussing some of the biggest hurdles regarding embracing change in the auto industry by OEMs.
Welcoming technological progress
Futuristic developments like IOT enablement, autonomy, and electric drivetrains are currently all the buzz of the auto industry. OEMs should accept these changes and plan these developments for their future agendas. To stay relevant, R&D is essential.
Sustainable manufacturing practices
OEMs will need to accept green principles to cope with current global environmental trends. It’s also vital to get ready for the global environmental political agenda and the general consumer demand for more environmentally friendly products. Sustainable practices include using greener production methods as well as greener supply chain decisions to build long-lasting success and reputation among customers and industry peers.
Customer-centric approach
To build strong relationships with customers, it is imperative to understand what your customers need and expect at every stage of your interactions. OEMs have to be willing to dedicate a significant portion of their resources to market analysis in order to get information regarding the current consumer trends that govern the new consumer’s behaviors and preferences. As a result, sales and customer satisfaction levels increase. Adhering to this type of practice provides an avenue for any company to outdo itself in the market and become more competitive.
Collaboration and networking
In today’s world, cooperation is one of the key factors when it comes to achieving success. Leading OEMs nurture their partnerships with their suppliers, technology developers, and other stakeholders in the venture-creating network. Collaboration helps improve the innovation process, which makes OEMs stay agile even in a fast-evolving environment.
Agility in supply chain management
The automotive industry has a highly detailed and developed supply chain with many parts and suppliers. OEMs require supply chains that respond and adapt to any disturbance in order to improve change adoption within an industry. Issues that are covered by this unit include diversifying the suppliers, leveraging real-time tracking technologies, and contingency plans, among others.
Regulatory compliance
As in any industry, there’s a plethora of rules and regulations that OEMs must comply with in the automotive industry. New emissions and safety regulations must be examined routinely to not miss any important updates. Not only do all products and services have to meet the current regulations, it’s also important to ensure that all marketing efforts follow the same rules to avoid losing money on mistakes.
Talent development and retention
Innovation, adaptation and growth require a skilled workforce. Therefore, every OEM should consider ongoing employee training on how best to respond to industry dynamics. People who are great at their job and creatively inclined, will always appreciate and favor working conditions that encourage creative thinking and embracing new ideas. Make sure the environment you provide is one that supports both personal and career development.
