The automotive industry needs to reconsider its approach to Just-in-Time and inventory levels, says George Grahovac, Assistant Vice President – Honda North America Supply Chain, during the Automotive Supply Chain Series: Moving on from the COVID Crisis webinar.
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According to Grahovac the coronavirus crisis is causing people to think in a different ways about manufacturing. Companies are forced to make innovative cost-cutting plans. Honda’s Assistant Vice President continued by saying teams were managing surprisingly well with working from home in an industry that relies on just-in-time supply.
Compared to other industries like retail in automotive even a single part could disrupt the whole process. This will force companies to look for ways to cut down their reliance on complex supply chains. The move will not be easy and there are many unknowns.