Adobe Stock
The automotive supply chain phenomenon symbolized as “just in time” is undergoing the biggest transformation in more than half a century, according to the Wall Street Journal. Auto makers are shying away from this model.
Various troubles have accelerated this trend during the Covid pandemic. Sudden swings in demand, freak weather and a series of accidents have led to automakers reassessing their assumptions that they can get the parts needed when necessary.
Just in time supply chain models champion avoiding waste, the article said. Suppliers deliver parts to the assembly line a few hours or days before they go into a vehicle so that manufacturers don’t pay for what they don’t use. But while supply chains become more global and car makers rely on single suppliers, the system isn’t as foolproof as it once was.