Supply Chain
VW Mexico Uses AI Forecast Against Supply Bottlenecks

From Sven Prawitz | Translated by AI 1 min Reading Time

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To avoid costly production line stoppages, Volkswagen relies on a new AI-based forecasting model at its Mexico plant. The system detects supplier failures days in advance.

The logistics planning of VW Mexico uses AI to forecast a supply failure.(Image: Volkswagen AG)
The logistics planning of VW Mexico uses AI to forecast a supply failure.
(Image: Volkswagen AG)

Tightly scheduled just-in-time and just-in-sequence concepts make automakers highly vulnerable to supply chain disruptions. To avoid having to respond reactively to bottlenecks, Volkswagen has implemented a data-based forecasting model at its site in Mexico together with the IT service provider Abat. The AI system analyzes historical and current data along the supply chain to identify patterns and deviations that indicate an impending failure.

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