Audi , with more than 80,000 employees worldwide and a production of approximately 1.8 million vehicles annually , faces the challenges of operating in an increasingly competitive and dynamic global market.
During his participation at Automotive Logistics & Supply Chain Mexico , Dieter Braun, Director of Supply Chain at Audi AG, gave an overview of the company’s logistics strategy, emphasizing the challenges and opportunities it faces in the current context.
With a vision oriented towards globalization, technological innovation and sustainability , Braun shared how Audi logistics has evolved to become a key factor in creating value in the company.
He explained that the automaker does not only rely on its headquarters in Germany, but has integrated a global vision with local execution that allows it to adjust its operations to the specific needs of each region.
“I don’t think we can design a strategy solely from Germany for the world; we must integrate the strengths of each region. In Mexico, labor costs are lower, which allows us to do more with less,” he explained.
This approach is especially relevant in markets such as Mexico, where Audi has key plants, such as the one in San José Chiapa, Puebla, which play a crucial role in the production of models destined for both the local market and for export.
In Braun’s view, the key to success lies in combining a global vision with leveraging local strengths , recognizing that while the ultimate goal may be common, the paths to achieving it may vary by region.
The interaction between the different Audi plants in different regions is another key point, since even though Audi has plants in several countries, including Germany, Mexico and China, each one faces its own challenges and opportunities.
For example, in Mexico, where labor costs are relatively low compared to Europe, the automation strategy is being implemented at a different pace than in plants in Europe, where labor costs are higher and automation is economically justified differently, while in China, automation is being adopted at an impressive speed , due to lower technology and labor costs.
However, Braun noted that one of the challenges in implementing these technologies is that the solutions used in China are not always compatible with European regulations.
“For example, in China, self-driving trucks are produced at very low cost, allowing for greater automation, but this type of technology is not yet permitted in Europe, creating a point of friction in the overall strategy,” he said.
This has Audi looking to bring the technology to other regions, such as Mexico, before implementing it in Europe, taking advantage of the flexibility of local policies and lower operating costs.
Digitalization and automation as a pillar of the strategy
One of the main pillars of Audi’s logistics strategy is digitalization, which is transforming the company’s supply chain.
Through the implementation of advanced technologies, such as artificial intelligence and automation , Audi seeks to improve operational efficiency and reduce costs associated with logistics.
“We are applying artificial intelligence in all our logistics processes, and automation is changing the way we operate in our plants,” said Dieter Braun.
An example of this is the introduction of autonomous trucks into their processes, which will allow for optimizing the transportation of goods , reducing dependence on labor and improving delivery precision.
Braun also highlighted the use of advanced algorithms to tackle some of the most complex challenges in logistics, such as optimizing the use of resources such as semiconductors , which in the past were a bottleneck for vehicle production.
Automation, however, is not limited to the transport of goods, but is also influencing the improvement of production processes, reducing manufacturing times and increasing the capacity to respond to unforeseen changes in demand.
On the other hand, in the context of Audi’s transformation towards 100% electric production, the company also faces significant challenges in its supply chain.
Dieter Braun said the shift to electric vehicles involves not only a reconfiguration of production plants, but also a review of supply chains that supply key components such as batteries.
Braun explained that “the shift towards fleet electrification is progressing more quickly in some markets, such as China, reflecting the speed at which countries are adapting their infrastructure and policies to support this transition.”
He added that Audi is in a transition phase that not only involves adapting to market demands but also facing external pressures, such as climate change and the need to reduce carbon emissions.
In this regard, the executive pointed out that logistics plays a crucial role , since each decision taken in the supply chain has a direct impact on the company’s carbon footprint.
Audi has implemented various initiatives to reduce CO2 emissions, including optimizing logistics processes to minimize resource consumption and improve energy efficiency in its operations.
Flexibility is another key characteristic that Audi is seeking to integrate into its logistics strategy , according to Braun, who noted that the current environment is uncertain, with fluctuations in component availability, problems in the global supply chain and the emergence of new competitors in the market.
Dieter Braun said that during the pandemic, Audi experienced difficulties with the supply of semiconductors, which affected production at several plants. However, the company used its data analytics capabilities and logistics infrastructure to prioritize the distribution of these components according to the most urgent demand, thus minimizing the impact on production.
This ability to adapt quickly is something Audi seeks to continuously improve through the implementation of advanced technologies and the formation of resilient teams capable of managing uncertainty effectively.
The future of logistics at Audi
Audi’s vision for its future supply chain focuses on deeper integration of all areas of the company.
“Logistics is not seen as just an isolated department, but as a cross-cutting process that connects sales, purchasing, finance, production and other key departments. This integration allows for a clearer and more unified view of processes, which in turn facilitates informed decision-making and the creation of value for the company,” said Dieter Braun.
He added that in the future, Audi will continue to focus on improving the efficiency of its supply chain, using data more intelligently and applying innovative technological solutions to create added value.
“The goal is to continue developing globally connected logistics that is capable of responding to local demands and adapting to changes in the market in an agile and effective manner,” said the executive.
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