Things You Should Know
Vehicle Purchasing – China, Corona Virus
Fred Heegan reports that North American based Automotive Purchasing Managers and Directors all have quickly created Corona Virus SWAT teams to address the risks of not receiving parts from their Chinese suppliers.
Many companies have dual sourcing strategies with common tooling in different global regions to help mitigate these epic supply chain disruptions, but almost every company has a few Chinese suppliers that are the only source of supply globally for a unique tooled part.
Chinese suppliers are not shipping JIT to the NA Automotive Tier 1’s and OEM’s; they have a pipeline of landed inventory in NA and Inventory already on boats headed to NA.
One Purchasing VP was really frustrated that the air charter carriers are quoting 500% premiums for all flights from China right now.
If China Manufacturing Plants do not start up in early March, the pipelines will dry up at the Tier 1’s and the OEM’s will begin to shut down mid March.
It’s times like these that CEO’s really depend on the Purchasing/Supply Chain teams to work hard and figure out solutions.
#SCNrecruiting #vehicles #china #coronavirus #automotivesupplychain