Key Procurement Trends in the Automotive Industry

Modern-day marketers consider sourcing as a viable means to reduce their production costs. This leads to lower prices of goods and services. More consumers are willing to purchase the products and services because of their low prices. When it comes to innovation, the automotive sector tops the list. This is because the automotive sector is hugely dependent on collaborative behavior against customers’ needs. Automobile marketers are also engaging in sourcing operations because of obvious reasons. In 2019, the key sourcing trends in the automotive industry are namely, active supplier diversification, the emergence of fuel-efficient vehicles, and Corporate Social Responsibility (CSR). A large number of automobile companies are hiring procurement experts for conducting their sourcing activities smoothly.

Procurement Trends in the Automobile Sector

The key procurement trends in the automotive industry are listed as follows:

• Active supplier diversification: In recent times, most organizations are worried about their supplier insolvency and poor financial condition. However, companies need to cope up with all these situations. For this reason, automobile marketers are adopting the policy of active supplier diversification. This is also helping the automotive industry to combat risks effectively. Before going with this trend, organizations need to have a close eye on the financial condition of their existing suppliers.

• The emergence of fuel-efficient vehicles: Fuel-efficient vehicles do not harm the environment. This is the major reason behind its popularity. India has emerged as an attractive sourcing destination for automobile companies. These companies are taking suggestions from India procurement freelancers to get acquainted with the economic and political scenario of India. Nowadays, hybrid vehicles are common in every part of the world. Such improvements are driving innovation in the automotive industry.

• Corporate Social Responsibility: Several large-sized automobile companies are laying stress on CSR policies more than anything else. Modern-day marketers not only want to sell their offerings but also they are trying to gain a unique place in the consumers’ minds. Apart from these, marketers should also take note of the fact whether the key suppliers are taking the necessary steps to reduce carbon emissions in their current supply chains. In this way, both marketers and suppliers can contribute to the environment. With the assistance of procurement experts, automobile companies are streamlining their Corporate Social Responsibility approach.

• Going autonomous: With the advent of artificial intelligence, machine learning, and deep neural networks, automobile marketers can achieve results that were once considered utopian. Nobody had ever imagined the development of autonomous vehicles in the recent past. The autonomous vehicles do not require human intervention even in intricate traffic situations.

• Getting connected: In this digital age, getting connected is the trend. So, why the automotive industry will lag in this aspect? The networking of cars is increasingly becoming possible nowadays. The vehicle occupants can engage in multifarious activities like surfing the internet, communicate, work or access multimedia services while the vehicle is running.

The automotive industry is embracing technology in its every phase of operations. The automobile marketers are instilling innovativeness in this technology-enabled vehicle sphere. India procurement freelancers help organizations to formulate their India sourcing strategies. If you are the head of an automobile firm, adhere to the above-mentioned sourcing trends for addressing the needs and fluctuating preferences of consumers.