Semiconductor shortages have been grabbing all the headlines when it comes to challenges in the automotive supply chain, but issues go beyond that.
In our latest episode of ASW Conversations, our host and publisher Peter Bulmer speaks with Dave Opsahl, CEO of Actify, makers of automotive program management software.
Opsahl goes through three main challenges facing automotive suppliers — exponential program growth, labour and raw material availability and price fluctuations — in the episode, What else is behind supply chain delays?
And he also noted that things are starting to change in the supplier-customer relationship.
“So, suppliers for a long time were so captive to the OEM customers they serve that the OEM customers were able to dictate a lot of things — terms, price levels; they would do things was in some cases like place an order for a quantity of a particular component or assembly, and then the OEM only would take delivery on a portion of that. And the supplier would be expected to deal with that,” Opsahl said. “That’s changing because when you have an increased volume of programs, the suppliers have more options on who it is that they’re going to do business with.”
He also explores strategies, impacts on prices and how the industry can work together through supply chain issues.
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