Digital Control Towers in Automotive Supply Chains

In the automotive supply chain, service points designated for after-sales vehicle maintenance inherently lack adequate storage capacity. Therefore, inventories at these points must be minimized, necessitating efficient management of material flows from a centralized source. This chapter examines the potential application of digital control towers within automotive supply chain management. A SWOT analysis evaluates digital control tower implementation, and a subsequent TOWS analysis develops aligned strategic approaches. Digital control towers enhance operational efficiency by enabling optimal stock levels, just-in-time production, accurate and rapid data flow, effective supplier management and communication, streamlined document processes, and reliable data provision for production planning. However, weaknesses including challenges in managing inaccurate information, high start-up implementation costs, and difficulties related to technological adaptation. A digital control tower affords opportunities for demand-driven production planning, increased competitiveness, enhanced adaptability to market changes, improved management of special operations, and support for digital twin technologies, but also poses threats confusion in stock tracking, supplier resistance and bias, failure to monitor updates, confidentiality demands, and persistent data security challenges.