Partner Ann Marie Uetz was quoted in the Automotive World article, “COVID prompts supply chain strategy rethink,” about how the COVID-19 pandemic has interrupted operations in many unexpected ways and now suppliers are re-evaluating long-time strategies or completely overhauling their approaches.
According to the article, the crisis has highlighted the importance of supply chain oversight.
Uetz told Automotive World that, “The December 2019-March 2020 period saw automotive suppliers impacted by supply issues coming out of Wuhan, and that hit some companies early and hard.”
“Companies need to be able to look into their supply chain and understand what’s happening within, where parts are, where raw materials are sourced and the stresses at any point in the chain,” she explained. “Those suppliers who are proactive and continue to investigate their sub-tiers, really understanding the flow of goods within their own chain and the stresses present, can be proactive in resolving issues,” Uetz said.
Uetz also shared that, “Coming out of that crisis, some of us thought there would be more wholesale changes to better protect suppliers in the event of financial distress…. For the most part we didn’t see that. They continued sourcing in the traditional way, based on the lowest cost and using a single source. Some suppliers have a very short memory.”