Posted: 21 Dec. 2021 5 min. read

Reimagine the automotive supply chain

Using the semiconductor shortage to drive change

 

How can the automotive industry navigate the current semiconductor shortage, mitigate negative impacts, and rethink global supply networks to help future-proof sector growth? Our new report examines the challenges presented by the computer chip shortage, then explores opportunities to reinvent the automotive supply chain and build a road map for resiliency.

Download report

Semiconductor shortage shines a spotlight on the automotive supply chain

Sometimes the smallest thing can have a big impact on an ecosystem. In response to automotive vehicle assembly slowdowns in the early days of the pandemic, semiconductor manufacturers shifted to higher-demand sectors with shorter lead times. The resulting global semiconductor shortage is forcing companies, including automotive original equipment manufacturers (OEMs), to make production cuts that may last into next year. As a result, the industry is taking a hard look at reimagining the automotive supply chain.

Along with significant near-term financial pressures, the semiconductor shortage has been a call to action for stakeholders to identify and manage risks through advanced collaboration, multi-tier visibility, and predictive threat response.

Many companies are beginning to recognise that rebuilding supply networks around the core principles of efficiency and resilience is not only possible, but long overdue and imperative to remain viable in a rapidly transforming global automotive sector.

We need to develop dual sourcing strategies from different geographics for critical commodities.

                     – Chief procurement officer, global OEM

Gaps in semiconductor demand and supply for the automotive sector challenge the supply chain.

For insights on building a more resilient automotive supply chain, download our report.

Sign up for the latest updates

Key contacts

Peter Gallimore

Peter Gallimore

Partner

Peter is an Audit Partner with 20 years of experience. He specialises within the automotive and wider manufacturing sector and has acted as Audit Partner on a range of UK and foreign-listed groups and private companies.  He is also a qualified corporate treasurer.

Nick Smith

Nick Smith

Partner

Nick has over 20 years of consulting and technology experience. He works with clients to help them shape and deliver technology-enabled change programmes, primarily focusing upon the automotive and manufacturing sectors. Nick leads Deloitte UK's Consulting Automotive business.

Sarah Noble

Sarah Noble

Partner

Sarah is a Partner within Deloitte’s Strategy & Operations Consulting practice, delivering large-scale automotive transformation programmes. She is experienced in the management of programmes, across global geographies, designing organisations best set-up and placed to handle market trends. She has significant experience across multiple manufacturing organisations, focusing on automotive OEMs. Sarah holds a Master of Science Degree in Project Management and has a Bachelor of Science in Supply Chain & Logistics, with a honours minor Quality Management. She has worked with multiple clients to manage constraints across geographies, working closely with stakeholders to identify critical path activities and coordinate timelines with necessary milestones.