Hey There! Let‘s Look at the Top 10 Ways RPA is Transforming Automotive in 2024

Automation is driving massive changes across the automotive industry. As a automotive leader, you may be wondering how you can leverage intelligent automation to achieve transformative benefits.

Well, you’re in luck! In this guide, we’ll explore the top 10 applications of robotic process automation (RPA) that are reshaping automotive in 2024.

What is RPA and Why Does it Matter?

First, let‘s quickly recap what RPA is:

RPA allows you to configure software “bots” to handle repetitive, rules-based tasks without human involvement. For example: data entry, calculations, transferring data between systems, etc.

These bots operate at tremendous speed and scale, running 24/7 with near-zero error rates.

According to Mordor Intelligence, the RPA market for automotive will explode from $250 million to $930 million between 2021-2027.

It’s easy to see why. RPA enables automotive companies to:

• Reduce operational costs by 60-80% for automated processes
• Improve process efficiency by cutting cycle times in half
• Minimize errors that affect quality or result in penalties
• Enable staff to focus on higher-value work

Clearly, RPA is becoming a must-have tool for staying competitive. Now let’s look at the top 10 use cases transforming automotive.

1. Streamlining Order Processing

Order processing involves many manual steps:

• Checking order information across sales channels
• Entering orders into databases
• Validating customer data
• Routing orders to appropriate teams

This becomes highly complex with orders coming from websites, dealerships, and third party sellers.

RPA can automate the end-to-end process:

1. Bot logs into sales channels and extracts new orders
2. Information is cross-checked and validated against databases
3. Orders entered into ERP, CRM, and other systems
4. Orders automatically forwarded to production, accounting etc.

This ensures error-free processing and near real-time order fulfillment.

Mercedes Benz applied RPA for order processing and reduced processing time by 50% while achieving 99.9% accuracy.

Audi‘s dealer portal leverages RPA to scan documents, validate VIN numbers, and upload orders. This boosted dealer satisfaction through faster order-to-delivery.

2. Accelerating Payment Processing

Payment processing involves many steps:

• Matching invoices to payments
• Applying cash to accounts
• Issuing invoices for unpaid bills
• Reconciling accounts
• Chasing past-due accounts

RPA bots excel at these rules-based processes:

1. Data from invoices and payments is extracted
2. Accounts are updated by matching invoices to payments
3. Discrepancies are flagged
4. Past-due invoices identified
5. Reminders and calls auto-generated for overdue accounts

This automation provides complete visibility into receivables and cash flow. McKinsey estimates a 60-80% cost reduction for payment processing with RPA.

Audi leverages RPA across payment processing including cash application, payment reminders, and reconciliation. This accelerated cycles by over 80% while lowering costs.

Volvo‘s RPA bots handle high payment volumes, enabling real-time cash flow insights and proactive collections. Payment errors causing penalties declined by over 30%.

3. Optimizing Inventory Management

Inventory management involves:

• Tracking stock levels across warehouses
• Fulfilling orders based on availability
• Reordering stock to meet demand
• Keeping inventory data updated across systems

RPA biases can deliver huge benefits:

1. Bots maintain real-time inventory records across warehouses
2. Inventory levels monitored and reorders triggered based on rules
3. ERP, supply chain, and e-commerce systems updated with latest quantities
4. Orders allocated from optimal warehouse based on product availability

This minimizes waste from spoilage/obsolete stock while improving order fulfillment rates.

Volkswagen leverages RPA-based inventory optimization across 120 warehouses globally. This reduced excess stock by 30% while maintaining availability.

Geely‘s dealerships use RPA to manage spare parts inventory. The bots smooth inventory fluctuations and improve fill rates.

4. Smoothing Shipping and Logistics

Shipping workflows involve tons of manual work:

• Managing shipping schedules
• Coordinating with warehouses
• Generating customs forms and compliance docs
• Integrating tracking data as shipments move
• Managing returns and refunds

RPA dramatically accelerates these processes:

1. Bots receive orders and optimize delivery schedule
2. Shipping date/mode synchronized across systems
3. Customs forms and shipping labels auto-generated
4. Tracking data integrated across supply chain
5. Returns and refunds processed seamlessly

McKinsey estimates RPA can reduce supply chain costs by 25% or more. Bots enable real-time shipment rerouting when exceptions occur.

Toyota uses RPA-enabled logistics management to dynamically optimize routes and modes based on real-time conditions. This has reduced distribution costs by over 30%.

5. Driving Insights Through Analytics

Analytics help guide better decisions through data. But compiling reports is manual drudgery. RPA can help by:

1. Automatically aggregating data from all relevant systems and sources
2. Applying cleansing, normalization, and transformations
3. Structuring data into dashboards, KPI reports, and visualizations
4. Refreshing metrics on a real-time basis

For one automaker, RPA bots gather 150+ KPIs hourly from dozens of systems into its analytics platform. This boosted data accuracy while removing 15 FTEs of repetitive work.

Jaguar Land Rover‘s analytics team leverages RPA to assemble sales data on a near real-time basis. This enables faster pricing adjustments, production planning, and market insights.

6. Monitoring Equipment with IoT and RPA

Modern assembly lines contain thousands of sensors across robotic systems, tools, and fixtures. This data can help detect issues proactively. Combined with RPA, IoT enables:

1. Real-time monitoring of sensor data for anomalies
2. Instant alerts triggered when thresholds breached
3. Tickets created with equipment details and diagnostics
4. Failures predicted through machine learning algorithms

BMW uses RPA with IoT telemetry to spot robot failures on its assembly lines. The bots trigger restarts or call technicians as needed, minimizing downtime.

Nissan‘s RPA system analyzes IoT data to optimize equipment maintenance. It reduces breakdowns due to preventive maintenance.

7. Automating Restocking

Auto manufacturing depends on just-in-time parts delivery. Stockouts can halt entire assembly lines. RPA helps by:

1. Tracking inventory consumption via sensors
2. Calculating optimal reorder points and quantities
3. Automating purchase orders to suppliers when stocks hit thresholds
4. Updating supply chain systems with expected delivery schedules

Toyota assembly plants use RPA to trigger JIT reorders. This has reduced parts stockouts by over 40%, boosting productivity. The bots also cut inventory costs by optimizing reorder size.

Honda leverages RPA to automatically adjust reorder triggers based on production schedules. This ensures parts arrive just as needed, improving inventory turns.

8. Coordinating Complex Supply Chains

Automotive supply chains are extremely complex with thousands of suppliers across tiers and geographies. RPA helps manage by:

1. Seamlessly integrating systems across the supply network
2. Orchestrating BOMs, production plans, logistics, and inventory
3. Automating information exchange across supply chain entities
4. Executing predefined protocols for exceptions and disruptions

RPA improves supply chain partner connectivity. Suppliers with RPA see 65% faster order-to-delivery cycle times per Capgemini. Automated data exchange also enhances forecasting accuracy.

Continental Tires uses RPA for production planning and inventory management across its 75 factories globally. Lead times fell by over 50% while improving service levels.

9. Managing Bills of Materials

Automotive BOMs contain thousands of components. RPA helps optimize these complex structures:

1. Automating BOM creation and cost rollups for new models
2. Integrating engineering, sourcing, manufacturing, and costing systems
3. Performing real-time BOM analysis for cost savings
4. Accelerating BOM updates for design changes
5. Verifying BOM accuracy across the product lifecycle

Ford‘s RPA solution manages BOMs with 20,000+ components across systems. RPA verification has eliminated 80% of BOM errors during new vehicle launches.

Tata Motors uses RPA-enabled BOM management for faster design changes. This has sped up new model introduction by over 35%.

10. Enabling Seamless Vehicle Connectivity

Modern vehicles contain dozens of telematics control units (TCUs) to manage connectivity. RPA helps integrate these systems by:

1. Seamlessly linking TCUs with back-end servers and data repositories
2. Orchestrating over-the-air software updates and data exchanges
3. Automating diagnostics and proactive maintenance
4. Streamlining communications across navigation, entertainment, and cloud-based apps

Hyundai plans to utilize RPA to accelerate the rollout of connected services including traffic alerts, remote diagnostics, and on-demand entertainment.

Volvo uses RPA to manage connectivity between vehicles and its cloud-based apps. The bots will help launch new services like predictive maintenance and enhanced navigation.

As you can see, RPA is driving huge benefits across the automotive value chain. It offers a fast path to lower costs and higher efficiency.

Leading automakers are increasingly deploying RPA to stay ahead of the curve. The technology landscape is rapidly changing due to electrification and autonomous driving.

RPA provides much needed flexibility and agility to navigate this transformation. By unleashing intelligent automation, automotive leaders can accelerate their business success.

To learn more about automating your operations with RPA, please reach out. I‘m excited to start you on this journey!