Automotive OEMs Boost Confidence in Supply Chain Resilience, but Sustainability Challenges Persist
🚗 Automotive OEMs Boost Confidence in Supply Chain Resilience, but Sustainability Challenges Persist.
According to a survey by Capgemini, automotive original equipment manufacturers (OEMs) are increasingly confident in addressing future supply chain disruptions. About 61% of senior automotive industry executives reported reducing their backlogged orders by 61%, and 34% expect further reductions in the next year. OEMs are shifting away from building inventory and are instead implementing monitoring tools to better understand supply chain risks. However, sustainability remains a challenge, with less than 40% considering environmental factors in supply chain decisions, and suppliers reducing their annual investment in sustainability by 17%. Nevertheless, 56% of respondents reported improved operational efficiency through recycling car parts.
In a recent column in Supply Chain Management Review, a story surfaced about how a LAN transformer led to thousands of Audi, Bentley, and Porsche vehicles being stuck at U.S. ports, potentially breaching the U.S. Uyghur Forced Labor Prevention Act.