Driving the Future: AIAG's Leadership in the EVolving Industry

Auto Supply Chain Prophets

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In this episode of the Auto Supply Chain Prophets Podcast, hosts Terry Onica and Jan Griffiths interview Matt Pohlman, the CEO of Automotive Industry Action Group (AIAG). They discuss the organization's response to the rapidly changing automotive industry and how AIAG is keeping pace with technological advancements, regulatory changes, supply chain challenges, and the rise of EV OEMs.

They explore the role of AIAG in setting industry standards and providing essential training for supply chain professionals. Matt highlights AIAG's collaboration with Wayne State University and offers their innovative training programs. Matt emphasizes the significance of adapting to new challenges while maintaining tried-and-true practices.

Matt stresses the importance of sustainability and corporate responsibility in today's automotive supply chain. He emphasizes AIAG's commitment to addressing environmental, social, and governance (ESG) concerns in the supply chain, particularly in light of forced labor regulations and other risks.

Matt advises supply chain leaders to acknowledge the need for change. He emphasizes the importance of agility, flexibility, and collaboration within the industry. He also encourages the listeners to embrace progress over perfection and engage with AIAG to stay informed and proactive in addressing industry challenges.

Themes discussed in this episode:

• The significant transformation of the automotive industry
• The role of organizations such as AIAG in industry evolution
• Updating standards and practices for supply chain adaptation
• Empowering supply chain leaders to prepare them for the future
• The importance of MMOG/LE in enhancing supply chain processes
• Environmental, social, and governance (ESG) considerations
• Collaboration with EV OEMs and startups
• Embracing agility and flexibility
• Understanding the cultural impact of technological changes on the auto supply chain

Featured on this episode:

Name: Matt Pohlman

Title: Chief Executive Officer, Automotive Industry Action Group (AIAG)

About: Matt is currently serving as the Chief Executive Officer of the Automotive Industry Action Group (AIAG). With over 30 years of experience as a Global Supply Chain Executive, Matt has a proven track record of success in leading global supply chain organizations, processes, and transformations. His expertise lies in driving a culture of change, generating significant cost savings, and aligning enterprise goals with strategic business direction. Matt excels in leveraging enterprise operating system models to integrate and connect supply chain teams, processes, and functions while also employing lean techniques to drive transformative change and improve operating results and team performance.

Connect: LinkedIn

Mentioned in this episode:

• Supply Chain Management Steering Committee
• (MMOG/LE) Global Materials Management Operations Guideline
• Essentials of Supply Chain Management Online Course
• Certificate in Purchasing & Supply Chain Management
• Tomorrow's Leaders Today
• (APQP) Advanced Product Quality Planning
• Automotive Guiding Principles and Practical Guidance
• Uyghur Forced Labor Prevention Act
• Supplier code of conduct
• Automotive Core Tools
• AutoCulture 2.0: Leading with Gravitas

Episode Highlights:

[02:14] AIAG’s Transformation: Discover how the world's largest automotive industry group is changing to keep pace with industry changes.

[04:29] CEO Role: Learn about the CEO's responsibilities, highlighting Matt's role in AIAG’s leadership amid industry transformation.

[07:39] AIAG Initiatives: Find out about the initiatives AIAG is taking to keep up with the rapidly changing automotive industry landscape.

[14:04] Working with EV OEMs: Explore AIAG's strategies for working with electric vehicle OEMs and adapting to the growing electrification trend.

[18:54] Environment, Social & Governance: The significance of environmental, social, and governance factors in the automotive industry and how AIAG addresses them.

[26:03] Advice to Supply Chain Leaders: Matt advises supply chain leaders to recognize the necessity for change. He encourages leaders to maintain an agile, flexible approach and prioritize progress over perfection.

Top Quotes:

[03:57] Matt: “We have to continue to make sure we're bringing new people in, bringing new ideas in, and making sure we're finding a way to start working on the newer challenges. It's too easy to work on the old stuff. Because it's tried and true, and it's easy. We know how to do that. But working on stuff involving EV batteries or working on software, working on ESG things, all of those things are hard.”

[06:59] Matt: “Our membership has to want to come to us to solve problems. And we have to be viewed as problem solvers. We've got a great history of that and legacy of that, but we've got to get in this new space because a lot of people think of AIAG as maybe an automotive gas or diesel company, and we're not. We are many more things than just that. And we're broader than just quality. We were in the ESG space, the supply chain space; we do a lot.”

[12:14] Matt: “AIAG is dedicated to empowering supply chain professionals and making sure that we're doing what we can to make sure they're ready for the challenges of the future.”

[26:39] Matt: “You have to acknowledge that we're in an unprecedented time of change. I think it's really important to understand what the cultural impacts that it’s going to have on your organization, your product lines, how relevant are you going to be in the future.”