{"id":9975,"date":"2022-01-20T10:02:24","date_gmt":"2022-01-20T18:02:24","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9975"},"modified":"2022-02-23T15:09:42","modified_gmt":"2022-02-23T23:09:42","slug":"get-in-line-supply-chain-management-in-the-age-of-scarcity","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/01\/get-in-line-supply-chain-management-in-the-age-of-scarcity","title":{"rendered":"Get in Line: Supply Chain Management in the Age of Scarcity"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”9976″ img_size=”full”][vc_column_text]For the past 30 years, the automotive industry has been hyper-focused on increasing efficiencies by reducing variabilities. And with an industry that had remained relatively steady for decades, achieving this level of predictability wasn\u2019t too tricky. Lean thinking has promoted a period where manufacturing leaders have continuously improved operations, focusing on this objective. However, as the <\/span>automotive<\/span><\/a> industry undergoes drastic waves of disruption and suppliers face the tension of new competitors, changing OEM business models, and a scarce market, the manufacturing environment is now facing a mountain of change – which is nearly impossible to predict.\u00a0<\/span><\/p>\n

Now, automotive supply chain managers across the industry must adapt to the new normal and \u201cget in line\u201d or miss out entirely.\u00a0<\/span><\/p>\n

Here\u2019s how <\/span>scarcity<\/span><\/a>, competition, and changing vehicle architecture impact the automotive supply chain and what you can do about it.\u00a0<\/span><\/p>\n

How Scarcity is Changing the Automotive Supply Chain\u00a0<\/span><\/h2>\n

When the <\/span>chip shortage<\/span><\/a> hit the industry at the end of 2020, most suppliers saw it as a symptom of the pandemic\u2014a temporary issue that would eventually iron itself out. But with a full year of supply shortages, delays in production, and billions of dollars worth of missed revenue, industry experts are now expecting this shortage to extend well into 2023.\u00a0<\/span><\/p>\n

Automakers have also recognized the impact of the shortage and, in response, have begun to take the supply chain into their own hands. OEMs are now bypassing the Tier-1 suppliers that have traditionally handled semiconductor supply and are developing relationships directly with the manufacturers.<\/span><\/p>\n

Some of the recent strategic moves from OEMs in response to the pandemic-induced chip shortage are:<\/span><\/p>\n