MANUFACTURING GLOBAL – In their plans for recovery, vehicle manufacturers and Tier 1 and 2 manufacturers have an opportunity to reshape and right-size their supply chains, as they adapt to the new normal. Recognising that demand for new cars will likely have changed and the current car ownership model may have shifted in favour of on-demand services, will be critical to this process. Another important element of planning for recovery should be working with suppliers in order to adapt to new demand levels. Before making any adjustments, they should review work in progress, forecasts and lead times. They should also consider whether it is possible to learn lessons from those ahead of the curve in countries such as China and South Korea. Reducing complexity could be a key way to drive efficiency and value, while reducing pressure on the supply chain.
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