SCM for SDVs

SCM4SDVs is a lightweight, adaptive supply chain model designed for software-defined vehicles (SDVs). It removes inefficiencies, reduces dependencies on rigid release cycles, and aligns supply logistics with software-first development.

Core Principles of SCM4SDVs

  1. HW/SW Unbundling

    • Software and hardware evolve independently with modular integration points.

    • Suppliers provide pre-validated digital twins of hardware, enabling early software development.

  2. Agile Contracts & Fewer Fixed Requirements

    • Suppliers commit to capability-based contracts, not just fixed deliveries.

    • Software updates and hardware iterations occur asynchronously with fewer, more flexible requirement checkpoints.

  3. Just-in-Time SW/HW Integration

    • Software development aligns with virtual hardware before physical hardware is even shipped.

    • Cloud-based pre-integration ensures readiness before final assembly.

  4. Event-Driven, Demand-Synchronized Logistics

    • Real-time telemetry from SDV production lines triggers dynamic material flow.

    • Predictive analytics pre-orders components based on software-defined feature demand.

  5. Lean Validation & Digital Homologation

    • Continuous compliance checks digitally verify regulatory conformity.

    • Automated homologation pipelines reduce time-to-market for software-defined components.

SCM4SDVs in Action:

Tier 1 supplies digital twins of ECUs before hardware ships.OTA-ready software releases allow continuous updates, independent of hardware refresh cycles.Contracts focus on "capability delivery" instead of rigid requirements.Reduced requirement checkpoints and homologation bottlenecks enable software-defined flexibility.

SCM4SDVs optimizes SDV supply chains by making them modular, software-driven, and real-time adaptive—moving beyond traditional linear automotive logistics.

Five Key Strategies

OEMs can minimize managed requirements by outsourcing system responsibility to suppliers, enforcing standardized interfaces, leveraging pre-certified components, adopting simulation-driven validation, and utilizing third-party compliance services.

1. Black-Box Outsourcing (Supplier-Owned Responsibility)

  • Concept: Shift full responsibility for specific systems or components to a Tier 1 supplier, treating them as a black box where you only define high-level requirements and expected performance outcomes.

  • How It Works:

    • The supplier provides a fully developed, validated, and homologated system.

    • The supplier is contractually required to meet all functional, safety, and regulatory standards.

    • OEM only manages interface requirements and system integration.

  • Example:

    • Instead of managing 80,000 airbag system requirements, OEM defines:

      • Deployment speed

      • Crash test compliance (UNECE, FMVSS)

      • Electrical interface

    • The supplier handles the rest.

  • Impact on Supplier Relations:

    • Requires strong trust and contractual oversight.

    • OEM audits supplier processes instead of managing detailed requirements.

    • Increases reliance on Tier 1 suppliers’ engineering expertise.

✅ Pros: Low internal complexity, fast time-to-market. ❌ Cons: Less control over deep technical details and customizations.


2. Standardized Interfaces & Modularity

  • Concept: Define clear, standardized interfaces that allow suppliers to develop components independently, reducing the number of requirements managed at the OEM level.

  • How It Works:

    • OEM defines hardware and software interfaces but not the internal logic of components.

    • Suppliers deliver pre-certified modules that integrate seamlessly.

    • Use industry standards to avoid custom requirement sets.

  • Example:

    • Software-defined vehicles (SDVs) can use COVESA VSS for software interfaces, allowing plug-and-play ECUs.

    • AUTOSAR-based ECUs standardize communication between vehicle domains.

    • Battery systems following standardized charging interfaces (ISO 15118).

  • Impact on Supplier Relations:

    • Encourages competition among suppliers (plug-and-play components).

    • Requires OEM enforcement of interface specifications.

    • Reduces long-term supplier lock-in.

✅ Pros: Highly scalable, allows multiple supplier options. ❌ Cons: Requires strong interface governance.


3. Pre-Certified & Homologation-Ready Systems

  • Concept: Work with suppliers who deliver components and systems that are already pre-tested and pre-certified for regulatory compliance.

  • How It Works:

    • OEM specifies only regulatory requirements and expected performance.

    • Supplier provides certified solutions with documentation for homologation.

  • Example:

    • ADAS system suppliers ensure UNECE R79 (steering), R152 (AEB), and FMVSS compliance before delivery.

    • Tier 1 suppliers provide ISO 26262 ASIL-D safety cases for ECUs without OEM involvement in every detail.

  • Impact on Supplier Relations:

    • Increases supplier responsibility for compliance.

    • Reduces need for OEM-internal homologation efforts.

    • Requires legal and contractual frameworks for liability sharing.

✅ Pros: Reduces homologation complexity at OEM level. ❌ Cons: Supplier selection must be rigorous.


4. Virtual Validation & Digital Twin-Based Homologation

  • Concept: Use simulation, AI, and digital twins to reduce physical testing and requirement documentation.

  • How It Works:

    • Define high-level functional requirements and verify them via virtual models instead of manual requirement decomposition.

    • Suppliers provide simulation-based proof of compliance.

    • AI-driven requirements management tools suggest and track regulatory changes.

  • Example:

    • Using virtual crash testing to verify airbag compliance instead of managing thousands of test conditions manually.

    • Using AI to auto-map regulatory updates to existing requirement sets.

  • Impact on Supplier Relations:

    • Requires suppliers to provide simulation models.

    • Reduces dependence on physical prototyping.

    • Shifts verification from physical testing to software validation.

✅ Pros: Reduces test complexity, faster compliance. ❌ Cons: Requires investment in simulation infrastructure.


5. Regulatory Compliance as a Service (RaaS)

  • Concept: Outsource regulatory tracking, compliance, and homologation documentation to specialized third-party services.

  • How It Works:

    • OEM only defines vehicle-level compliance goals.

    • Third-party experts handle legal interpretation, requirement updates, and certification.

    • Suppliers deliver pre-certified components validated by these services.

  • Example:

    • KPMG, TÜV, or DEKRA handle regulatory approvals.

    • Third-party AI tools continuously track UNECE, FMVSS, ISO updates.

  • Impact on Supplier Relations:

    • Simplifies compliance management for OEMs.

    • Reduces in-house regulatory tracking needs.

    • Requires partnerships with homologation experts.

✅ Pros: Reduces complexity of regulatory tracking. ❌ Cons: Adds external dependency.

Summary: Choosing the right approach

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