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Supply chain

Driving supply chain agility with order simulation

Leverage advanced technologies such as GenAI to predict future market demand in an automotive business that builds complex products to order.

OEMs know they must offer build-to-order vehicles alongside build-to-stock, in order to establish a global presence and cater to diverse market segments. That’s particularly noticeable in the electric vehicle (EV) segment, currently evolving from a buyer’s market to a seller’s one.

Until now, though, build-to-order has presented major challenges in terms of predicting the parts required.

Many of these challenges arise from the huge number of variants that are needed when customers personalize their cars by selecting their preferred combination of options. The challenges are aggravated by the fact that OEMs need to start forecasting parts requirements before the market has even seen the product – and by the volatility of highly competitive markets.

The result is that, too often, an OEM’s eventual call-offs are quite different from the forecasts given to suppliers 2-3 months earlier. These mismatches can lead to loss of orders because of delayed delivery, lack of trust along the automotive supply chain, and wasted resources.

So, especially when a product has many part variants, accurate forecasting is essential. But legacy approaches usually fail when confronted with build-to-order complexities.

“Predicting future demand for automotive parts poses significant challenges for manufacturers – particularly at a time when many vehicles are being built to order to satisfy customer demand for individualized experiences. Order Simulation for Automotive overcomes those challenges, enabling manufacturers to communicate their needs to suppliers in a timely and accurate manner. This SaaS solution built on SAP technology demonstrates the value of our data-driven approach to innovation. And it’s just one of the ways we’re empowering automotive companies to optimize their supply chain through advanced technology.”

Laurence Noël,
Global Automotive Industry Leader, Capgemini

“Order Simulation for Automotive is an excellent example of an industry specific solution built on the SAP Business Technology Platform. It shows how the industry cloud approach gives customers access to innovative solutions tailored to the needs of their industry – solutions offered by partners such as Capgemini, but also by SAP itself. Where there are difficulties in reliably forecasting demand for vehicle option configurations, this sophisticated and user friendly simulation tool should be considered.”

Hagen Heubach
Global Vice President Industry, Automotive Business Unit, SAP

Fortunately, there’s now a new type of forecasting solution: one that works across the whole lifecycle, integrating different techniques (qualitative and quantitative) to produce accurate forecasts at each stage. The solution can address the needs of the entire organization, not just one function. Technologies such as Gen AI are harnessed to offer this advanced functionality in a user-friendly and seamless manner.

This new approach, called “order simulation,” yields a range of benefits including:

  • Closing the gap between forecasts and actuals
  • Proactive optimization in the factory
  • Better use of resources, enhancing automotive sustainability
  • Enhanced supplier trust
  • Shaping your future market
  • Better use of employee time

It all adds up to a significant competitive advantage for the OEM. To learn about this approach, please download our new PoV today. Then contact our experts to explore how your organization could transform the automotive supply chain using Capgemini’s Order Simulation for Automotive, an innovative SaaS solution built on the SAP technology platform.

Order simulation for automotive

Accurately predicting market demand for unique option configurations by vehicle to drive supply chain agility.

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Meet our experts

Laurence Noël

EVP, Head of Global Automotive Industry, Capgemini
Laurence Noël is a distinguished professional with a robust background in the automotive industry. She has more than 25 years of experience, and was previously Senior Vice President of the Circular Economy Business Unit at Stellantis. Leveraging a diverse background across management of business units, strategic planning and engineering, Laurence empowers clients to shape profitable and successful strategies, achieve transformation, and meet automotive sustainability goals.

Anke Rieche

Global Automotive Program Lead
Anke is a business development expert with 20 years’ experience across software, infrastructure, and consulting. A highly motivated team player with a strong customer-first ethos, Anke has carved a reputation for developing and executing go-to-market concepts, especially around SAP’s S/4 HANA and Intelligent Enterprise platforms, and particularly as they apply to the automotive marketplace. Anke is a firm believer that automotive suppliers and OEM’s can reach new heights in terms of agility and speed by deploying SAP’s Automotive Cloud solutions, including joint developments by SAP and Capgemini and co-innovative solutions with pilot clients.

Maid Jakubović

Supply chain expert, Automotive cloud initiative with SAP
Maid is a managing Business Analyst with more than 15 years’ experience as an automotive industry specialist. He spends most of his time working directly with clients and has a thorough understanding of the automotive business. He believes that the automotive industry is a leader in innovating to address highly competitive and challenging markets and he is a vanguard of creative innovation. He is renowned for his pragmatic, results-focussed style of leadership.