Agile automotive production for a personalized future

Agile automotive production for a personalized future

The automotive industry is undergoing one of the fastest transformations in its history. Electrification, evolving retail models and the push for sustainability have all accelerated change. Yet, the rise of consumer-driven personalization has had a significant impact on the way automotive manufacturers plan, build and deliver vehicles in recent years.

Consumers increasingly expect the ability to “click-to-configure,” track their orders in real time and receive vehicles tailored to their preferences. While many prestige brands in regions like EMEA have long operated with configure-to-order models, mass market manufacturers have traditionally relied on make-to-stock strategies built around standardized trims and dealer allocations. Today, however, even mass market consumers expect higher levels of personalization, more choice and faster delivery.

For OEMs and tiered suppliers, this growing appetite for customization has exposed the limits of legacy production models. Traditional make-to-stock and static allocation strategies were created for scale and predictability rather than agility. As a result, manufacturers often struggle to keep pace with real-world demand, leading to mismatched inventory, slower turnover, and costly inefficiencies.

When push models push back

Many manufacturers still operate using a “push” approach, producing based on dealer allocations or historical averages rather than live consumer demand. This often results in an oversupply of slower-selling models and shortages of the trims and features customers actually want.

The problem compounds across the value chain. Suppliers, operating several tiers down, receive outdated forecasts or limited visibility into the latest configuration changes. This lack of synchronization makes it difficult to plan production runs efficiently, optimize resource utilization or meet tight delivery windows.

The impact is measurable. Managing the growing number of configuration possibilities creates complexity in production and scheduling. Cars may take longer to build, production costs can rise and customer satisfaction can decline if manufacturers cannot deliver on personalized orders quickly.

Agility is the new competitive advantage

In today’s market, agility is more than operational efficiency. It is a business model. Manufacturers must adopt production systems that can sense and respond to changing demand in real time. That means shifting from static allocation and make-to-stock production toward configure-to-order and demand-driven manufacturing models.

Salim Shaikh, corporate vice president of industry strategy at Blue Yonder, recently explained in a webinar with Ford, Mitsubishi Motors and Polaris that customer expectations are reshaping supply chain strategies in the automotive sector. Consumers want more choice, customization and speed, similar to what they experience with top e-commerce platforms. At the same time, supply disruptions, competition, and margin expectations put OEMs and tiered suppliers in a challenging position. Manufacturers need solutions that allow them to manage both the consumer side and the supply side, maintain service levels, reduce premium freight costs, and protect profitability.

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