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Are Supply Chains Too Lean?

Leave a Comment Filed Under: Manufacturing, Quality-Cost of Quality

Supply chains everywhere have become too lean — and not just in auto. This trend was highlighted by pandemic-driven shortages in virtually everything – drugs, medical equipment, construction supplies, even toilet paper. The chip shortage alone is projected to impact global automotive sales by 1.3 million units in 2022.

The issues behind these shortages show no signs of abating. The recent Detroit/Windsor bridge blockade, the war in Ukraine, and the fire aboard and subsequent sinking of the Felicity Ace cargo ship transporting 4,000 VW Group cars – each one a black swan event of sorts – further underscore the need to rethink supply chain resilience strategies and risk management.

In a recent Automotive News article, Carla Bailo, CEO of the Center for Automotive Research (CAR) in Ann Arbor, Michigan, said, “We don’t anticipate this will continue happening, but you never know. That’s what makes risk management so important and also so difficult.”  

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Filed Under: Manufacturing, Quality-Cost of Quality

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