Published: April 04, 2024

Reading time: 4 min

“Our efforts to address recurring tooling issues caused by maintenance lapses resulted in a 9% reduction in non-quality costs over six months.

 -CEO’s Note, Fortune 500 Leading Automotive Company, USA 

A leading company in the automotive industry faced significant challenges due to a need for more clarity in its operations with suppliers, resulting in inefficiencies and production delays. To address this, the company partnered with industry experts to deploy an advanced AI-driven tooling digitalization system to improve oversight and enable quicker data-informed decisions. Early outcomes indicated a notable improvement in operational efficiency, including a reduction in unexpected production stoppages and an 8% increase in overall production output. These efficiency gains cut down on lost production time and created a ripple effect, leading to higher product quality and faster time-to-market.

Proactive Shift to AI Tooling Management

Assembly manufacturers aiming to improve operational efficiency and product quality turn to artificial intelligence (AI) for solutions. By leveraging AI, they can obtain unparalleled insights into their production processes, enabling more informed decision-making and a proactive stance on maintenance and production challenges.

The Visibility Gap

Accurately forecasting customer demand is crucial for strategic production planning, ensuring the timely assembly and procurement of necessary components in assembly manufacturing. However, a lack of clear insight between ordering parts and starting production can delay processes and limit Original Equipment Manufacturers’ (OEMs) flexibility, challenging their ability to adapt to market changes swiftly. Addressing this issue is essential for enhancing efficiency and adaptability among executives.

Advancements in digital technology, explicitly tooling digitalization, provide a solution to the visibility gap in manufacturing. This technology changes OEMs’ operations, transitioning from traditional methods to a more agile, transparent, and responsive framework.

How does this strategic advancement in outsource manufacturing redefine the operational landscape for OEMs?

Introducing digital enhancements in outsourced manufacturing increases efficiency and transforms supplier collaboration for OEMs. Shifting from manual systems to an intelligent platform with IoT sensors and data analytics provides instant access to critical information, offering real-time insights into manufacturing processes and component quality.

Tackling supply chain opacity

Visibility within the supply chain is vital for enhancing efficiency and reducing costs. Access to real-time data is essential for conducting thorough root-cause analysis and ensuring a competitive edge. The absence of such data can lead to increased production delays and escalating costs.

Here’s one of our client’s use cases:

Facing over huge losses due to supplier capacity issues, a leading global automotive company turned to an industry expert for a solution. The tooling management system pilot project identified about £52mil in potential operational improvements, paving the way for substantial revenue growth, broken down as follows: Cost savings: £6.4mil Cycle time optimization: £0.6mil Risk mitigation: £45mil. This strategic partnership enhanced supply chain transparency, enabling proactive management of production, tooling life, and supplier performance. The result is significant cost savings and a stronger competitive position. This case exemplifies the impact of digital tooling solutions on the automotive industry.

“The tooling management system pilot project identified about £52mil in potential operational improvements”

Wrap up

In the automotive sector, adopting tooling digitalization and AI could redefine competitive edges and revenue models.

Is your firm ready set to leverage these advanced technologies to boost revenue growth and establish new benchmarks within the industry?

About the author


eMoldino aims to digitalize, streamline, and transform your manufacturing and supply chain operations. We help global manufacturers who want to drive corporate innovation while maintaining the core values of collaboration and sustainability. Talk with us to learn more 

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