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Meeting the challenge of volatility

Meeting the challenge of volatility

Most companies in the automotive supplier industry are having to change many aspects of the way they are organised, and above all need to be more flexible in order to remain successful despite increasing volatility in their business. TMG specialists Ralph Reuth and Rainer Heger explain the organisational challenges that are still facing automotive suppliers in a comprehensive article for the periodical Automobil-Produktion.


The world economy is in a phase of unprecedented dynamic change. Whether a company benefits from these structural changes or is hindered by them depends on how well that company's organisational procedures succeed in dealing with the increased instability and dynamism in the business environment.

It can be seen that the more volatile and unpredictable the developments, the greater the need to structure the organisation as an intelligent, "breathing" network effectively becomes a matter of survival, shaping the company up to meet the future.

ALL COMPANIES IN THE AUTOMOTIVE SECTOR ARE CHALLENGED AT ONCE

The process of globalisation is nothing new for companies in the automotive supplier industry. There has always been technological progress, which can sometimes have serious consequences on the economy and society. But what makes the present situation so unusual and explosive is the extent to which the majority of companies are affected by the dynamic of these underlying changes.

It can certainly be said that there has been little to compare with it in recent economic history.