Arena Helps Auto OEM Suppliers Race to Market Ahead of Competition
In the increasingly complex and competitive automotive supplier industry, getting to market first makes all the difference. To quote fictional racecar driver Ricky Bobby, “If you’re not first – you’re last.”
Today’s sophisticated cars are not just defined by aerodynamic lines and 22 inch dubs; in fact, the technology in today’s modern automobiles oftentimes requires over 100,000,000 lines of software coding. Today’s cars have some of the most complex electronic devices found across any industry, such as features that parallel park for you, tell you not to change lanes—or even braking for you are just a very few of the exciting new technologies.
Arena, the cloud PLM market leader and number one product development problem solver for IoT (Internet of Things) companies, is helping automobile component suppliers take it to the next level. Automobiles are rapidly becoming at least as intricate and interactive as a smartphone. From deep wireless device integration to driverless automobiles and the software defined car, vehicles rolling out of the factory are many times more complex than a jet fighter of not too many years ago, with IoT and telematics playing a central role. With 250 IoT customers, Arena understands the challenges facing product companies, including tier one automotive suppliers.
What advantage does Arena offer industries defined by complex Internet of Things like components and electronic devices? One answer: a single all-in-one solution.
Arena’s all-in-one quality management solution (QMS) takes a product-centric or bill of materials (BOM) focused approach to quality management, enabling companies to optimize quality management in the context of their entire product record.
Arena assures a higher degree of interoperability to avoid the frustration of linking together third party dissociated solutions. Indeed, as the automotive component market increasingly incorporates IoT technologies, and vehicles become more connected and complex, it is only natural the industry would look to Arena, which already has more than 250 IoT customers in this burgeoning nascent industry — a number that few competitors can match.
Hey, don’t take our word for it. Here’s what Arena customer Michael Repetto of Air International (AI), a tier 1 automotive supplier, had to say.
According to Repetto, AI saves 10 percent on its parts cost with Arena PLM because of “greater visibility into a supplier’s costs.” This has allowed AI to cut its own prices by 10 percent to stay competitive.
AI also uses Arena PLM to save big on its injection mold tools, Repetto notes. “These tools can cost anywhere from $200,000 to $500,000 each, and they have traditionally been manufactured in North America,” he says. “Arena gave Air International the freedom to source globally, which led us to contract with Chinese manufacturers who provide injection mold tools at 33 to 50 percent less than traditional manufacturers. Plus, they delivered them 20 to 33 percent faster. On a complete air conditioning project, this can result in significant savings of at least hundreds of thousands of dollars, which significantly affects our ability to provide competitive quotations.”
Air International also uses Arena to optimize prototyping process. “Making an incorrect prototype assembly can waste more than $10,000,” says Repetto, “and since the prototypes can take weeks to build, precious time is also wasted, introducing delays that can cascade throughout the schedule.”
Having a “single version of the truth” that all suppliers can follow has eliminated mistakes due to miscommunication or the use of out-of-date documents, says Repetto. “When an engineering change order is made, which can happen frequently during the design process, all relevant suppliers are notified immediately and the documents are readily available.”
To learn more about Arena’s success helping automotive companies achieve success, read this recent press release.
Tier 1 Automotive Supplier, Air International Thermal Systems, saved hundreds of thousands of dollars in outsourcing costs with Arena PLM. Get your copy of Air International’s case study from our website to learn how you can too.