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Speaking to nearly 250 attendees at the recent AIAG Supply Chain Summit, NASA’s Michael Galluzzi advised automakers to invest in their supply chain because it will “pay off very quickly!” The more companies pay attention to modern-day supply chain disciplines, he said, the more it will lead to increased efficiencies and financial returns.

Galluzzi kicked off an exciting line-up of speakers at what many attendees described as “one of the best AIAG Supply Chain Summits in years.”  Each June, the Summit features world-class subject matter experts who inform attendees on accelerated changes as well as upcoming trends in supply chain challenges and technologies. The one-day event is very popular among attendees because it allows them to benchmark against their peers regarding competitiveness.

Galluzzi engaged the audience by finding common ground between NASA and the auto industry. “There’s lots of similarities between what you do and interplanetary supply chain management,” he said. “The only difference is I’m trying to manage things not on this planet.”

Galluzzi offered several pieces of useful advice for automotive supply chain professionals:

  • Recognize that 75 percent of your recurring support costs are influenced during the design phase.
  • You can’t assess your supply chain if you lose visibility of your supply chain. You have to cannibalize and harvest parts from other systems, so that’s why you need deep visibility into all systems.
  • You must have accurate, credible, quality data from which to make good decisions.
  • Think about how your company’s actions affect your supply chain and all of the other groups connected to it.
  • The industrial base is very dynamic. You think you know all of your suppliers, but you don’t.
  • Address disruptions before they occur by identifying secondary sourcing and taking advantage of advancements in 3D printing.

Brandon Mason: Next-Generation Mobility

PwC’s Brandon Mason shared insights into global market growth, predicting that the last six or seven years of excellent growth will be followed by continued growth from 2018–2025, but probably at a more conservative rate.

Mason said that by 2025, we will meet cost parity with combustion vehicles and electric vehicles. However, that doesn’t mean everyone will adopt the new technology, he said, adding that there are “lots of trust issues” in this space, such as reliability over distances and availability of charging stations.

The U.S. continues to lag behind many major global markets in electric vehicles, he said, pointing out that U.S. drivers “like the idea of utility in vehicles.”

In addition to the United States, Mason discussed the current status and future predictions for various international markets including China, Japan, Brazil, and the EU. “We are overdue for a recession,” he said, “but that doesn’t mean it has to happen.”

He also revealed insights into the future of mobility, smart cities, and the next-generation of mobility known as CASE: Connected Autonomous Shared Electric.

Watch the full-length video of Mason’s presentation here.

Still Time to Attend September’s Supply Chain and Quality Conference in South Carolina

For the third consecutive year, the AIAG Supply Chain and Quality teams will partner with the South Carolina Automotive Council to produce a unique event that fuses two like-minded disciplines together.

Scheduled for September 12–13, 2019 in North Charleston, South Carolina, the AIAG/SCAC Supply Chain and Quality Conference showcases the most relevant supply chain and quality topics for any size automotive company.

The event is designed for OEM and tier suppliers, industry experts, education and research professionals, IT/cybersecurity software and hardware specialists, logistics providers, port and freight specialists, technical service providers, and economic development officials.

Visit the event page for registration and additional information.

Save the Date for the 2020 AIAG Supply Chain Summit

If you missed the recent AIAG Supply Chain Summit, make plans now to attend next year’s event on June 9, 2020. AIAG is already planning and building upon the great success of this year’s event and will again be featuring intriguing speakers with the insider view on all things relevant to supply chain.

Limited space is available for exhibitors and sponsorships, so if your company is looking for a leadership position at the 2020 event, please do not delay. Visit www.aiag.org for more information.