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

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

April 29, 2013
Procurement Leaders

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.

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Sourcing/Procurement/SRM Technology Global Supply Chain Management Supply Chain Security & Risk Mgmt Automotive Industrial Manufacturing
KEYWORDS Automotive Automotive Logistics Global Supply Chain Management Industrial Manufacturing Procurement Leaders Procurement Solutions SC Security & Risk Mgmt Sourcing Solutions Sourcing/Procurement/SCM SRM Supplier Relationship supply chain Supply Chain Analysis & Consulting Supply Chain Management Supply Chain Management: Automotive Supply Chain Planning Supply Chain Risk Management Technology
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