Supporting the supply chain

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The shift to production of electric vehicles and the impact of the Covid 19 has caused considerable disruption to automotive supply chains. AMS spoke to Neil Endley, Global Director for Turnaround Services, to get some insights into the challenges facing OEM and tier suppliers in the automotive sector

AMS: The lack of visibility further down the supply chain is a problem for even the biggest manufacturer. Do you think the transparency of the supply chain has improved in recent years, especially since we’re seeing more data transfer between suppliers and clients?

NE: Yes and no! Certainly, we have greater traceability and thus transparency of data throughout the supply chain however the challenge is what we do with it! Automotive tier suppliers operate in an extremely competitive market with tight margins and very little room for error. They are also exposed to any volatility in supply and demand. An OEM schedule an order for a certain number of parts to be produced to a specific cost, quality and deadline. If any of those targets are missed, the manufacturer can, and often do, lose the business if this performance level continues over a sustained period.

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