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Automotive Industry Fact Sheet 2026: SAP Cloud Solutions for Automotive Supply Chains

A 4-page ETS fact sheet — slower traditional demand alongside rapid EV growth, cost pressure, and material-security risk; the key risk drivers and critical supply chain challenges; how SAP's cloud portfolio closes the gaps in visibility, planning, and JIT/JIS execution; and a 12-week pilot with measurable targets.
September 21, 2026 by
ETS, Inc.
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The automotive sector is navigating slower traditional demand alongside rapid EV growth, intense cost pressure, and critical material-security risks, particularly rare earths and battery minerals. That environment increases forecast error, shortens product cycles, and stresses supplier tiers, forcing nearshoring and vertical re-engineering. This ETS fact sheet summarizes the industry drivers and what to do about them.

It lists the key risk drivers — EV content growth and BOM complexity, export controls and refining concentration, tariffs and freight costs, and margin squeeze on Tier-1 and Tier-2 suppliers — and the critical challenges: the multi-tier visibility gap, JIT/JIS fragility where transport blips create costly line stops, raw-material criticality, 20–30 thousand parts per vehicle, and balancing inventory reduction with on-time-in-full requirements.

SAP's integrated cloud solutions close the gaps: Ariba and Business Network digitize POs, ASNs, and invoicing for visibility and collaboration, IBP provides demand sensing, inventory optimization, and S&OP for fast planning, and SAP ERP Cloud with EWM and TM integrates JIT/JIS execution. The fact sheet cites SAP-community benchmarks for safety stock and OTIF improvement and outlines a 12-week pilot — setup and supplier onboarding, implementation with parallel testing, then KPI measurement — with 90-day targets.

The full fact sheet is available above as a PDF, together with why automotive companies choose ETS as their SAP partner.

2026 Top Supply Chain Strategic Priorities for Executives
An 11-page ETS briefing on the eight priorities supply chain executives should focus on in 2026 — geopolitical and economic resilience, AI and digital adoption, multi-tier visibility, network redesign, cybersecurity, supplier collaboration, talent and organizational readiness, and sustainability — each with a clear executive focus.