Executive Briefings

Purchasing Execs at Some Automakers Worry That Suppliers Can't Keep Up

Automotive suppliers are struggling to keep up with increased production, according to a new survey, raising serious concerns among purchasing executives.

Purchasing Execs at Some Automakers Worry That Suppliers Can't Keep Up

The survey, conducted by the Original Equipment Suppliers Association, found that 62 percent of suppliers to the North American automotive industry have introduced longer working hours in an effort to meet demand from customers.

According to IHS, automotive light vehicle production in North America is expected to hit 15.9 million units this year, up from just 12 million in 2010; and 43 new car launches will take place in 2014, rising from 20 in 2013.

With extra pressure being put on suppliers, concerns are understandably rising among purchasing executives concerned about a break in their supply chains. To try and stop disruptions at their origin, procurement functions are keeping a close watch on suppliers.

Toyota's North American purchasing chief said that the company had a watch-list of around 40 struggling suppliers, double the number on the list last year.

Read Full Article

The survey, conducted by the Original Equipment Suppliers Association, found that 62 percent of suppliers to the North American automotive industry have introduced longer working hours in an effort to meet demand from customers.

According to IHS, automotive light vehicle production in North America is expected to hit 15.9 million units this year, up from just 12 million in 2010; and 43 new car launches will take place in 2014, rising from 20 in 2013.

With extra pressure being put on suppliers, concerns are understandably rising among purchasing executives concerned about a break in their supply chains. To try and stop disruptions at their origin, procurement functions are keeping a close watch on suppliers.

Toyota's North American purchasing chief said that the company had a watch-list of around 40 struggling suppliers, double the number on the list last year.

Read Full Article

Purchasing Execs at Some Automakers Worry That Suppliers Can't Keep Up