On Your Behalf

On Your

Behalf

Industry Disruptions…A Marathon, not a Sprint

Even while the impact of the pandemic continues to weigh heavily on the automotive industry, the industry is experiencing additional disruptions that will also have a long-term impact. The current supply chain shortages, logistic delays and labor shortages continue to challenge the automotive supply chain as OEMs and suppliers work to maintain production schedules.

Additionally, it is now predicted the shortfall of semiconductors will constrain the automotive industry through the end of the year and beyond. These challenges and disruptions underscore the need for suppliers to develop new strategies to keep pace with the evolving industry marathon.

Supplier organizations are encouraged to focus on three key initiatives during these uncertain times:

• Closely collaborate with customers; Working together enables companies to create and implement better solutions to the ongoing challenges. • Do the same with your suppliers and the tiers below them. Create transparency throughout your entire supply chain. • Use processes and tools to determine and manage risk. Understand the severity and long-term impact of various risks to promote agile decision making.

Agility and transparency will determine a supplier’s success during these uncertain times. Suppliers that demonstrate these capabilities and create resiliency throughout their entire supply change will have a sustainable, competitive advantage.

OESA is available to support your teams. I encourage you to contact any member of the OESA team with your questions and requests.

As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.

Julie A. Fream President and CEO OESA