The automotive supply chain can be easily described as one of the most complex in the world. The automotive industry relies heavily on third-party organisations which can often create unpredictable delays or issues. Usually, if just one moving part in the supply chain breaks, it can throw off the whole chain.
Poll results
In our most recent LinkedIn poll, we asked our social media followers their thoughts on the supply chain of the future, specifically what they thought the biggest supply chain issue would be in the automotive industry in 2022.
We offered them three likely candidates with the option to say so if they felt none of these represented their expectations.
Automotive industry supply chain issues: what we found
The results from our poll are below:
World Events, e.g. Covid-19
According to 71% of our respondents, world events have the greatest impact on the automotive industry.
Still in the aftermath of the pandemic, it’s no surprise that respondents ranked ‘world events’ so highly. During this time, part shortages hit the automotive industry hard, impacting the whole supply chain.
World events will continue to have an impact into the end of 2022 with almost little to no warning. It’s expected that materials management will be one of the biggest upcoming challenges in the face of other world events, such as the Russia-Ukraine war. This will require excellent communication from all parts of the supply chain to ensure that warehouses receive the proper amount of inventory and control what they do have.
Lack of Visibility
The joint second response were the 14% that highlighted lack of visibility as the greatest challenge for the automotive industry in 2022.
Like many other industries, the automotive supply chain has an issue with lack of visibility. Especially given the fact there are so many moving parts and complexities within the automotive supply chain. Overlooking any part of the manufacturing process can damage the procurement process. Communication throughout the supply chain journey, such as streamlining operations and predictive analytics can help eliminate the lack of insight for all parties in the supply chain.
Ander
Ranked in joint second place with lack of visibility, 14% thought ‘other’ options would be the greatest challenge.
These may be related to quality control issues. Due to the highly sensitive nature of automotive manufacturing, it’s critical to ensure no errors occur during the assembling process. A lack of control can result in recalls, material waste and loss of revenue.
It is also likely that understocked inventories could fall under this challenge. Highlighted in the ‘world event’ overview, materials management is critical during current times, with automotive material being harder to come by, causing a backlog in all aspects of the automotive supply chain.
Environmental concerns
Finally, 0% of the respondents cited environmental concerns as a challenge in the automotive industry in 2022.
Since 2015, the automotive industry has become more engaged in an environmental agenda. It is required for both manufacturers and third-party partners that vehicles are constructed in an environmentally responsible manner.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your future supply chain strategy, get in touch with us.