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Auto industry rethinks cost-cutting playbook as COVID-19, chip shortages disrupt supply chains

6 Min Read DETROIT (Reuters) - After a year of getting hammered by the pandemic, a semiconductor shortage and storms that snarled Dana Inc’s global supply chain, the auto parts maker is reaching for a new playbook. Newly manufactured Ford Motor Co. 2021 F-150 pick-up trucks are seen waiting for missing parts in Dearborn, Michigan, U.S., March 29, 2021. Picture taken March 29, 2021. REUTERS/Rebecca Cook Many automakers and suppliers like the Ohio maker of axles, driveshafts and other auto parts, are deciding that securing their supply lines is the most pressing order of business. Dana’s Craig Price, senior vice president of purchasing and supplier development, is pushing companies in his supply network to change the way they do business, stepping away at times from the just-in-time, lean production practices that have guided automotive manufacturers for nearly 40 years.

United statesGrand rapidsCity ofUnited kingdomSteven merktBob rothRichard barnettMatthew lewisJoe whiteRamzi hermizDavid simchi leviFrederic lissaldeNick careyBen klaymanTim thoppilThomson reuters trust principles

Motor industry rethinks cost-cutting playbook as Covid-19 and chip shortages disrupt supply chains

Dana has also moved to help its smaller suppliers recruit workers and secure shipping space on containers to avoid any impact on its operations, Price said. And in the company s headquarters outside Toledo, Price is working on suppliers to join a data sharing network that will give Dana a detailed look at how suppliers two or three steps removed are doing rather than just counting on shipments to show up as provided in a contract. “We are working towards complete supply-chain transparency, which is not typically available at the moment,” he told Reuters of the plans at the $7bn company. “It s a journey that we re on to get as much data as we can, not for any other reason than just security of supply.”

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Has The Wuhan Virus Caused 2021 To Become The Year That JIT Auto Manufacturing Died?

Has The Wuhan Virus Caused 2021 To Become The Year That JIT Auto Manufacturing Died? Taiichi Ohno: Hero of the JIT Pro duction System DETROIT April 1, 2021; Ben Klayman reporting for Reuters reported that after a year of getting hammered by the pandemic, a semiconductor shortage and storms that snarled Dana Inc’s global supply chain, the auto parts maker is reaching for a new playbook. Many automakers and suppliers like the Ohio maker of axles, driveshafts and other auto parts, are deciding that securing their supply lines is the most pressing order of business. Dana’s Craig Price, senior vice president of purchasing and supplier development, is pushing companies in his supply network to change the way they do business, stepping away at times from the just-in-time, lean production practices that have guided automotive manufacturers for nearly 40 years.

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Auto industry rethinks cost-cutting playbook as COVID-19, chip shortages disrupt supply chains

Auto industry rethinks cost-cutting playbook as COVID-19, chip shortages disrupt supply chains
reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.

United statesGrand rapidsCity ofUnited kingdomSteven merktBob rothRichard barnettMatthew lewisJoe whiteRamzi hermizDavid simchi leviFrederic lissaldeNick careyBen klaymanTim thoppilThomson reuters trust principles

Auto Industry Rethinks Cost-Cutting Playbook As COVID-19, Chip Shortages Disrupt Supply Chains

Auto Industry Rethinks Cost-Cutting Playbook As COVID-19, Chip Shortages Disrupt Supply Chains
businessinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businessinsider.com Daily Mail and Mail on Sunday newspapers.