THE global automotive sector is being forced to re-think its reliance on just-in-time component sourcing as a result of the most fragile supply chains since the start of the century, according to the findings of a new report.
The Achilles Supply Chain Resilience Index (ASCRI) report for Q1 of this year indicates that the resilience of global supply chains has fallen to 39.8 – the first time the figure has fallen below its 40-point high-risk threshold, with further declines in resilience expected.
With the performance of the automotive sector already hit hard by the ongoing semiconductor shortage, further disruption caused by the conflict in Ukraine and COVID-prompted restrictions on movement in China makes automotive manufacturing one of the industries most exposed to supply chain risks.
The restriction of workers’ movements in China has led to many leading car marques including Volkswagen to cease production at several of its plants in China, not long after the semiconductor shortage prompted it to stop manufacturing at other factories in China and Germany last year.
Also contributing to a sector especially low in resilience is the ongoing lithium shortage, which has already begun to stifle electric vehicle (EV) production.
The industry’s reliance on just-in-time sourcing looks set to be challenged by a perfect storm which has dealt a major blow to the resilience of the automotive supply chain. Katie Tamblin, Chief Product Officer at Achilles, said: “We are seeing unprecedented levels of risk across global supply chains given events in Ukraine and China in particular, and for the automotive sector, these risks look set to have a lasting impact.
“With the resilience of the sector’s supply chain having been hit particularly hard over the last 12 months in particular, it seems likely that standard practises such as just-in-time sourcing will need to give way to a more pragmatic approach for the foreseeable future.”
The Achilles Supply Chain Resilience Index (ASCRI) is a time series index measuring changes in supply chain risk. The index measures underlying supply chain risk by country across six categories: Economic, Environmental, Labour Practices, Legal and Governance, Resilience, and Safety and Security. Each country’s score is derived by combining the Achilles’ Scores of suppliers based in the country with that country’s overall performance in those six categories. This framework is then supplemented by a range of global measures, including shipping and sentiment data. The Q2 Report uses data from January to March 2022.
Northgate are in it for the long haul
WHEN it comes to long term rental, Northgate offers a comprehensive range of support packages for SMEs, with a wide range of fleet solutions to meet the diverse needs of
ChargedEV – helping SMEs on their electrification journey
CHARGEDEV specialises in the supply and installation of Electric Vehicle charging equipment across the UK and having installed over 23,000 domestic and workplace EV chargers to date, it has become
R2C – digitising the fleet management process
R2C Lite has been created to eliminate labour-intensive administration processes, aid compliance and increase business productivity for SME fleets running HGVs, vans, trucks, trailers and more, many of which will
Northgate’s mobility solutions keeping you on the road
NORTHGATE Vehicle Hire's additional mobility solutions options and support packages can be built into its existing rental contracts, cutting down the need for multiple supplier agreements to be signed and
BMW – looking after fleets large and small
WHETHER you are a sole trader looking for a car that works for your business or you manage a fleet of fewer than 50 company cars, the BMW Business Partnership
BMW i4 – makes a lot of sense for the company car driver
THE new BMW i4 is the German premium brand's first ever all-electric Gran Coupé and it's a very interesting proposition for company car drivers with a 2% BIK rate for
Innovation drives Wilson Auctions’ success
AS one of the first in the industry to introduce MVR (Motor Vehicle Repair Workshops) on its various auction sites nationwide, Wilson Auctions was highly commended in this year's Business
Tax efficiency – BMW’s X1 PHEV, a Business Motoring winner
BMW's X1 xDrive 25e is a Business Motoring winner, picking up the Best Small SUV gong at this year's awards. It features a 1.5-litre three-cylinder petrol engine and electric motor
BMW X5e – makes real sense to drivers and fleet managers
THE BMW X5 xDrive 45e offers user-choosers a large SUV which delivers low running costs and associated tax bills. Thanks to CO2 emissions of 27-31g/km, the X5 falls into the
Van Monster Remarketing – tops for Business Motoring Awards
EXCEPTIONAL levels of customer service are at the heart of the Van Monster Remarketing proposition. The personal nature of the service provided by its Remarketing account managers has enabled to grow
BMW iX electrifies the Business Motoring Award judges
THE BMW iX will add electric performance to any forward-thinking fleet manager, as well as a spacious, lounge-like interior to keep drivers focussed on the road ahead, with a range
BMW iX3 brings electricity into the mainstream
Following the i3 and i8, the BMW iX3 is the brand's first electric SUV and the winner of this Year's Business Motoring Awards Best Medium SUV category. And the electric
Executive express – BMW530e offers savings for company car drivers
THE BMW 5 Series Saloon is the epitome of a sporty business saloon and The 530e plug-in hybrid models combine performance and frugality to create an optimised executive car. With
KeyFleet Partner Programme – Best Company Car Programme winner
WITH electric vehicles on the rise and with many government initiatives and support of the EV revolution, KeyFleet has become an ambassador for EVs.All employees are trained in Whole Life
Keeping up with the times – Europcar, Business Motoring Award winner
MULTI-MODEL mobility is becoming increasingly important for SMEs, particularly in the short-term rental arena and the EuropcarOne mobility platform provides seamless access to a full range of solutions, from daily
SOGO – Business Motoring Best Mobility Provider Winner
SHORT-TERM leasing is essential to the mass adoption of electric vehicles before 2030 when sales of all new cars and vans powered wholly by petrol and diesel will be banned.
Flexibility is key – Europcar, Best Long Term Rental
FROM COVID-19 and semi-conductor shortages impacting on vehicle supply to rising inflation and uncertain trading conditions, the past 12 months have not been easy for any business. But they have
Leave A Comment