Is time up for just-in-time car manufacturing?
What are the discussions in boardrooms at the moment?
SN “In terms of getting around the bottlenecks, I would’ve thought that there were two main discussions. One of them is: how do we bring in the components in a quicker way? How do we avoid the bottlenecks, whether it be by the Channel ports or flying components around the world? “But there are also discussions taking place about how we solve this in the medium term. It’s quite likely, with climate change, that the medium- to long-term cost of shipping won’t be as low as it has been in the past. So there may very well be production relocation, making [suppliers] closer to manufacturing sites to ensure just-in-time works.”
MB “We’re a manufacturer that has to sell internationally and in Europe. The disruption and time that has come as a result of Brexit has hurt British business. We’re in the process of setting up a new third-party logistics base very close to the Benelux- French border so we can get products to customers the next day or within 48 hours.
DB “I think we’re seeing an element of ‘just in case’ on the OEM side, simply because they have the risk of running short of things and therefore disrupting production. But there are things that can be done. These long supply chains expose companies to vulnerability. I also think a degree of reshoring is going to be inevitable, so you source closer to where production takes place.
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