Some 77% of U.K. companies identify supply-chain complexity as their fastest-growing business threat, which is intensified in the automotive industry by often-complex globalized logistics operations.
A survey by the Business Continuity Institute and British Standards Institution finds manufacturers’ greatest cause for concern is the risk of supply-chain disruption.
Brad Brennan, managing director-Evolution Time Critical, an emergency logistics specialist, says it is vital for manufacturers to safeguard processes against potential disruption to avoid costly financial and reputational penalties.
“Supply-chain failure in the automotive industry can cost millions in minutes if production is jeopardized; manufacturers cannot afford to risk unscheduled assembly-line stoppages,” Brennan says in a statement.
“Efficiently protecting the supply chain from failure does not only provide a safety net for when things go wrong, but also enables the utilization of higher-risk strategies that can help optimize operations and provide vehicle manufacturers with a competitive advantage.”
Brennan says Evolution Time Critical has seen a growing awareness at the senior-management level of the importance of supply-chain integrity over the past 18 months. This has translated into greater understanding of supplier activity and lead-time requirements and has identified where potentially fractious supply-chain links remain.
The growing awareness of the cost of supply-chain failure, Brennan says, has led to increased manufacturer investment in analysis of activities, leading to a deeper understanding of supply-chain nuances and allowing the adoption of higher-risk strategies.
“Industry trends for intensified production schedules, increasing model and trim variance and the demand for ever-improving component quality all place heightened pressure on suppliers, for whom an emergency logistics safety net remains invaluable,” he says.
Evolution has found emergency logistics is playing an increasingly integral role in lean strategies as the automotive industry returns to higher production volumes, allowing further inventory reductions while maintaining the reliability of deliveries to manufacturing plants.
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