Auto Supply Chain Parts Shortages and OEM Impacts

A Wall Street Journal article (March 22, 2011) describes parts shortages across the auto supply chain for chips, sensors, forged parts etc. In some cases, past auto demand order drops have resulted in supplier capacity being diverted (for chips) from auto to consumer electronics.  The Japanese earthquake and its aftermath has further stressed parts supplies and has resulted in production shutdowns at Ford and GM in the US and Toyota and Honda in Japan.  One upside is the increased detail of information sharing regardig production schedules and sales forecasts between GM and its suppliers, in an effort to synchronize shipments.  Given the tight supplier capacity, will suppliers see relief in the form of higher prices and will customer retail prices increase ? Will supply capacity shortages result in increased part commonality across the industry ? Will imported cars from other country locations with extra capacity satisfy customer demand ?

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About aviyer2010

Professor
This entry was posted in Collaboration, Operations Management, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

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