Sharing Economy’s Effect in the Auto Industry

The article posted on Mar 28, 2016 (http://www.bloomberg.com/news/articles/2016-03-28/how-sharing-cars-could-actually-boost-auto-sales) provides a unique point of view on the car sharing economy.

The traditional view is that auto sales will decrease with car sharing economy resulting in a negative effect for the manufacturing industry. A new paradigm is that a car sharing economy could have a positive effect on auto sales because of “empty legs” which means additional distance between one passenger and another. In New York City, UberX drivers travel almost half of the miles without a passenger according to the article.

In the contemporary scenario, each person drives one car. In the future, as adoption rates increase, the market size will grow by 1.2 car and consume 20% extra miles as empty rides between one passenger and another will add 10% to 20% more miles per drive. The life expectancy of on-demand vehicles is expected to be 3 years because of higher utilization. Sharing economy will increase demand for small sized cars.

How will car sharing economy transform the auto industry? How should the automobile business model be changed? What kinds of automobile need to be developed for the future?

B2B information sharing Leading to Improvements in Supply Chain

A blog published in gxsblogs.com (OpenText Study Proves that B2B Integration Significantly Improves Supply Chain Performance, dtd 4/1/2015) discusses how B2B data integration between manufacturers is helping companies improve their supply chain performance while reducing costs. With the advent of Data sharing (through EDI and other data integration tools) and rise of data driven manufacturing, there is even more scope for integration of demand driven manufacturing planning. The result will be faster turnaround time and elimination of many middle nodes, thus reducing costs and process wastages (a la Uber). What effect will data integration have on traditional supply chain roles? How comfortable are manufacturing companies with 100% data sharing? Does the current data cloud offer enough protection to ensure that data is not leaked to competitors or hackers?

 

http://www.gxsblogs.com/morleym/2015/04/opentext-study-proves-that-b2b-integration-significantly-improves-supply-chain-performance.html