Supply Chain Vulnerabilities From the Chips Shortage in the Automotive Industry
For nearly three years, the global supply chain for practically anything has left a lot to be desired.
For nearly three years, the global supply chain for practically anything has left a lot to be desired.
Ask any manufacturer in any industry what issue has been one of the biggest challenges since 2020 and most will say the same thing: supply chain management.
As we all found out during the onset of this decade (the COVID years), supply chains are a fragile thing.
But even without a pandemic, supply chains can make or break a production schedule.
Unfortunately, even in the best of times, there will always be some sort of supply chain challenge to overcome.
There’s no arguing that electric vehicles are changing the world.
Not only are they reducing our dependence on fossil fuels, but they're also making clean energy more accessible.
Outside of transportation, however, they're having an even bigger impact. Beyond lower emissions and charging stations popping up in the parking lots of major retailers, EVs are forcing governments and corporations to rethink how business is conducted.
The EU Battery Regulation and the preceding EU Battery Directive are prime examples.
Consider the sound system that’s in your electric vehicle’s design.
A necessity for many drivers and passengers, the system represents what we see with many other elements of the EV. There's a good chance the radio was made by one manufacturer while the speakers were by another. The software that controls the radio – that was probably done by another company, too.
In the history of automotive manufacturing, complete in-house construction of vehicles has been a rarity – especially at the mass-production level.
Put simply, it’s near impossible to build a vehicle – even electric – without incorporating parts from external sources into their builds.
In any manufacturing operation, what often derails production schedules?
It’s one of those worst-case scenarios you hope never happens at your electric vehicle (EV) auto plant.
In some relationships, there's a certain level of expectation for deliverables.