New research shows supply chain complexity is top worry for 77% of manufacturers


Emergency logistics provides contingency for automotive manufacturers’ complex globalised supply chains

Manufacturers cite the risk of supply chain disruption as being their greatest cause of concern, according to recent research by the Business Continuity Institute (BCI) and the business standards company, BSI. 77% of companies identify supply chain complexity as their fastest growing business threat, which is intensified in the automotive industry by often complex globalised logistics operations. It is vital, warns emergency logistics specialist Evolution Time Critical, to safeguard processes against potentially turbulent factors to avoid costly financial and reputational penalties.

“Supply chain failure in the automotive industry can cost millions in minutes if production is jeopardised; manufacturers cannot afford to risk unscheduled assembly line stoppages,” says Evolution Time Critical managing director, Brad Brennan. “Efficiently protecting the supply chain from failure does not only provide a safetynet for when things go wrong, but enables the utilisation of higher risk strategies that can help optimise operations and provide vehicle manufacturers with a competitive advantage.”

In the past 18 months Evolution Time Critical has witnessed a growing awareness at senior management level of the importance of supply chain integrity. This has translated in to greater understanding of supplier activity, lead time requirements, and provided knowledge of where potentially fractious supply chain links remain. “The research by the BCI evidences this growing supply chain visibility at board level, as clearly you cannot fear what you are not aware of. This trend is allowing Evolution Time Critical to work proactively with manufacturers to streamline their logistics while remaining vigilant against failure,” continues Brennan.

Growing awareness of the cost of supply chain failure has led to increased manufacturer investment in analysis of activities, leading to a deeper understanding of supply chain nuances and allowing the adoption of higher risk strategies – while the risk of failure is heightened, protection provided by proactive contingency ensures that the cost of failure is reduced. Industry trends for intensified production schedules, increasing model and trim variance and the demand for ever-improving component quality all place heightened pressure on suppliers, for whom an emergency logistics safetynet remains invaluable.  

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