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How Tier 1 suppliers can adapt to rapidly changing industry demands

6 minute(s) to read May 06, 2025

The automotive sector is evolving rapidly as it undergoes transformation to EV production. Advancements in technology and increasing demand for configure-to-order cars has shifted the dynamics of the industry.

The automotive sector is evolving rapidly as it undergoes transformation to EV production.  Advancements in technology and increasing demand for configure-to-order cars has shifted the dynamics of the industry.  Original Equipment Manufacturers (OEMs) are now faced with the need to innovate processes to remain competitive, placing pressure on Tier 1 suppliers to adapt to meet these demands.

To thrive in this environment, Tier 1 suppliers must demonstrate their ability to satisfy the needs of OEMs by adopting smart manufacturing, automation and next-generation technologies that drive efficiency and flexibility.

 

 

1. Smart Manufacturing

With Industry 4.0, electrification and sustainability shaping the future, Tier 1 suppliers need to evolve to remain competitive, utilising smart manufacturing technology and adaptable production processes to meet OEM needs.  Automation and connected manufacturing enables Tier 1 suppliers to partner with OEMs in areas such as accelerating new product introductions, lowering costs and improving margins.

At its foundation, smart manufacturing represents a transition from conventional manufacturing to the integration of digital technology into all aspects of production.  This extends beyond upgrading technology by approaching the production process and quality assurance in a whole new way, through the power of data and full connectivity.

Fully connected assembly also enables suppliers to provide more cost-effective processes through the ability to integrate their Manufacturing Execution System (MES) with OEM processes such as In-Line Vehicle Sequencing and Automated Line Control.

Smart Integrated Assembly is Atlas Copco’s concept for manufacturers looking to implement smart manufacturing.  Encompassing Atlas Copco’s assembly tools, hardware, software and service solutions, Smart Integrated Assembly provides value in each element of the manufacturing cycle.  This results in more efficient, flexible processes which maximise uptime and reduce waste and energy consumption.

 

 

2. Fully scaleable solution

Atlas Copco’s offering for Tier 1 suppliers provides a fully scalable solution that helps them to stay ahead in their assembly processes:

  • Joint Fastened – Meet OEM traceability & quality expectations, reduce downtime and defects, automate and optimise high-volume fastening operations.
  • Station Controlled – Ensure repeatable and defect-free production, meet OEM quality & safety standards.
  • Station Automated – Boost production output and maintain quality, reduce costs and improve efficiency through automation.  OEM compliance with traceability and repeatable processes.
  • Line Connected – Eliminate inefficiencies with real-time production data.  Provide full OEM traceability.
  • Factory Integrated – Unify all production elements into a single efficient system.  Ensure OEM compliance, increase throughput and minimise downtime.

Automated manufacturing

Competition, change and difficulties in recruiting the right expertise has made automated manufacturing a necessity for Tier 1 suppliers.  Automating assembly line processes minimises errors by ensuring tasks are undertaken precisely and consistently by eliminating variations that can occur in manual processes.  This enhances quality and improves efficiency whilst minimising disruptions to production.

Automated tracking provides production process visibility and improves traceability by logging every component that moves through the line, making it straightforward to identify post-production issues.  Introducing automated processes also makes it easier to meet sustainability goals by reducing energy and resource consumption.

 

 

3. Atlas Copco Automation Solutions

Atlas Copco’s automation offering is divided into three areas to meet customer needs:

  • Turn-Key Processes
  • Configurable Products
  • Standard Products

Designed to guarantee quality and consistency throughout production, Turn-key Processes include in-line TCR Cells for conveyor-based tightening applications and off-line TCC Cells for pre-assembly tightening, including screw feeding.  For similar and repeatable processes such as wheel assembly, Atlas Copco offers dedicated tightening packages, including PowerHEADs and feeding solutions.

The opportunity to integrate cobots into the manufacturing process has also increased with the development of Smart Integrated Assembly technology, enabling them to undertake both low and high torque tightening.  By using AI, cobot-based tooling can also undertake actions such as reading component scans and colour recognition to select specific fasteners and their locations.

Configurable products include the Automation Control Platform, which combines the Atlas Copco ecosystem into an automated solution.  The software enables all functions, such as tools, screw feeding and robot guidance, to be easily set up, connected to a MES and maintained.

Atlas Copco’s integrated vision inspection technology can also be employed to ensure traceability and quality assurance in automated assembly applications where high tolerances and variations require a reaction and adjustment of the robot's position.

Standard Products from Atlas Copco’s catalogue of high-performing automation products also enable Teir 1 suppliers to improve existing assembly systems.

Summary

By embracing smart manufacturing and automation, Tier 1 suppliers can meet the needs of OEMs and position themselves for future success as supplier partners of choice.  Smart manufacturing provides competitive advantage by allowing for flexible production and informed decision-making to meet evolving OEM customer needs.

Atlas Copco is developing Tier 1 supply chain agreements into long-term strategic business partnerships that provide scalable solutions and support that enables them to ensure sustained growth.

Advanced Automotive Assembly Systems
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Advanced Automotive Assembly Systems
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Driving Efficiency, Profitability & Sustainability for Tier 1 Automotive Suppliers.
Driving Efficiency, Profitability & Sustainability for Tier 1 Automotive Suppliers.
Smart Integrated Assembly
Smart integrated assembly
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Digitalisation. Automation. Smart Factories. Realising the Potential of Industry 4.0
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Automated Solutions
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Automated Solutions
Unmatched expertise in automated tightening for a seamless assembly line.
 
Unmatched expertise in automated tightening for a seamless assembly line.
Unmatched expertise in automated tightening for a seamless assembly line.
Contact us
Contact us
Learn more about how Atlas Copco can optimise your assembly line.
 
Learn more about how Atlas Copco can optimise your assembly line.

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