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Our perspective about the Automotive Supply Chain challenges

When Money Goes Down the Drain — and no one notices
The expensive routine you might not see

 

In the automotive Supply Chain, the biggest waste doesn’t come from major failures. It comes from what’s repeated every day without question. An extra shipment because planning didn’t foresee a production spike. A lost negotiation because order behavior changed and no one noticed in time.

These operational losses rarely show up explicitly in performance reports. They hide in the excesses: in wasted effort, rework, emergency freight, and poorly planned inventories. They disappear in exhausted teams, rigid systems, and a routine defined by the urgency of “it has to go now.” And, without clear visibility into what’s behind these deviations, many companies end up making the easy choice: fulfill the order without fixing the cause. They put out the fire but don’t investigate what started the spark.

Excessive inventory due to a lack of analysis of order history.

 

“What generates the most waste today is the lack of time to think. If the operation is always in reactive mode, you get into a cycle where you’re only delivering, not improving,” says Wanderlei Rosa, Director of Operations at Sintel. “When the right information arrives late or is corrupted, the problem has already become a cost,” he observes.

The truth is that the absence of smart planning and the difficulty of fluently integrating data, systems, and people continue to be the main silent villains of efficiency. It’s this invisible noise that drains money from the operation every day, without fanfare—but with a real impact on the bottom line.

If you could map all the untreated exceptions in your operation today, how much would that represent per month? And more importantly: who is looking at this strategically?

If your company has already understood that acting on the causes is more profitable than simply correcting the effects, now might be the perfect time to start a new kind of conversation: one that is more strategic, more connected, and more transformative. Get in touch with our team.

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