Optimizing Supply Chain in the Automotive industry with Quantum-Powered Simulations
Updated: Mar 1
Modern-day automotive supply chains are hi-capex, complex systems with numerous tiers of suppliers, OEMs, and partners both upstream and downstream, spread across the globe. Recent events, such as the pandemic, the Ukraine-Russia war, and even the semiconductor chip shortage, have had a domino effect on many businesses. This impact has been more severe for the automotive, resulting in production delays, price fluctuations, and extended delivery periods.
In addition to these disruptions, the automotive industry will face many challenges due to tech advances and shifting customer preferences. Specifically, changes in ownership to access model, EV adoption, and compliance with emission norms will have significant impacts. Therefore, automotive manufacturers and OEMs must carefully weigh all these factors before planning a new vehicle and its variants. In the current scenario, automotive manufacturers have used AI systems for automation, predictive analysis, and forecasting. However, given the changing dynamics and information overload, there is a need to enhance system capabilities.
Enter Quantum Computing
Quantum computing has the potential to exponentially speed up, shape, and streamline the future supply chain. As a result, supply chain leaders can make informed production decisions based on multiple what-if simulations based on various parameters.
Though Quantum computers in the supply chain are not viable, a more practical Quantum inspired approach is required for supply chain optimization. Quantum inspired approach is based on quantum computing principles using classical computing platforms that can have immediate applications for solving optimization problems. Furthermore, this approach is more efficient in the near term, providing simulations with higher accuracy with less time and computational resources.
Quantum-powered solutions for supply chain management
1. Optimizing Logistics and Route management
Quantum-powered Prediction and simulation for logistics and route management can reduce travel costs, fleet capacity management, and customer management. The Quantum-Inspired approach improves solution quality and run-time needed for complex, geographically spread, tiered supply chains. Better logistic management could improve supply chain operations and transportation efficiency for warehouse management, distribution, and inbound logistics.
2. Optimization of production schedules and resource allocation
Quantum algorithms can quickly find the most efficient production schedules, while High-Powered Classical computing (HPC) can run simulations and analyze the potential impacts of different production scenarios. As a result, it can help enterprises make more informed decisions about allocating resources and optimizing their production processes.
3. Demand forecasting, Prediction, and analysis
Quantum Inspired simulations of economic events, customer preference trends, and tech adoption rates will help analysts with better forecasts and address demand-supply imbalances. Simulation accuracy can support better decision-making, such as ordering the number of materials, components, and vehicles. Better disaster management could be a source of cost reductions for enterprises.
4. Improving sustainability
Sustainability is a growing concern for supply chain managers since most organizations' indirect outpouring and resource consumption is caused by their supply chain. Quantum-powered improvements in the overall supply chain operations could help enterprises achieve environmental sustainability goals through faster processes to make them greener and more sustainable.
Experience the Power of Quantum with BQPhy
Complex optimization problems are typically difficult to solve on classical computers, even approximately. Therefore, a hybrid approach combining quantum and HPC has the potential to improve supply chain management in the automobile industry significantly. It will enable more efficient and effective decision-making.
BQPhy® simulation suite from BQP allows enterprises to harness the power of quantum without any capex-heavy investment of quantum resources.
BQPhy®, with its proprietary quantum-inspired algorithms integrated as part of its solver, leverages the power of quantum computing and can run on both HPC and quantum computers. Furthermore, this approach automatically finds optimal solutions to various optimization problems while satisfying constraints.
On a concluding note, the automotive industry faces significant challenges due to various disruptions, tech advances, and changing customer preferences. Quantum-inspired solutions can help optimize supply chain operations, improve sustainability, and make more informed decisions. BQPhy®s simulation suite offers a practical approach to leverage the power of quantum computing and address complex optimization problems for supply chain management in the automobile industry.