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Easing Pressure in the Supply Chain

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Car sales are booming in the U.S., but the strain on the automotive supply chain is reaching a critical stage, says Sven Dharmani, principal in Advisory Services at EY.

With output so high, suppliers are losing their ability to maintain production lines and adjust output to pace an inherently volatile product mix, Dharmani says. More flexible tooling would help, but the industry is under enormous pressure to keep costs low.

The solution? Dharmani recommends fewer option packages and new processes that enable carmakers to forecast their needs 18-24 months ahead.

Click HERE to learn more about EY Automotive.

 

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