Reimagining a more resilient automotive supply chain

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 recognize 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.