And the present chip shortage could be a part of the rationale companies are reconsidering, Gartner Vice President of Supply Chain Research and Advisory Geraint John mentioned. “The global semiconductor shortage is creating uncertainty throughout a number of industries and will influence our working results this yr,” Ford Motors CFO John Lawler said on the corporate’s most recent earnings call.
Dealerships are really good at customer service, understanding the needs of their specific geography and buyer base, and automobile upkeep and restore. Whether or not there are “a handful” or considerably greater than a handful of Tier 1 suppliers concerned, plenty of that technology is actually flowing through from Tier 2 suppliers. In different phrases, the Tier 1s are doing a fair bit of “integrating and refining” of their own. “It’s not enough simply to say, ‘You know what, I’ll change, and I’ll maintain inventories, and we’ll buffer every little thing with stock,'” Ganguli said. And it’s price noting that semiconductor sourcing was one of many issues following the catastrophe, and particularly it was one of many weak links in Toyota’s supply chain, Matsuo wrote.
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