“Just in time” meets “just in case” – how the supply chain has to change in an age of rising costs and falling demand

Think of the automotive industry as a complex network.

Carmakers, known as original equipment manufacturers, (or OEMs) sit at the centre.

Encircling them are the Tier One suppliers who deliver big integrated solutions directly to the OEMs.

Next come Tier Two suppliers, who provide individual parts or assembled components either directly to the OEM or to Tier One suppliers. After them are the Tier Three suppliers who often make just a single component for several Tier Two suppliers. It's a complex and specialised ecosystem.

Toyota pioneered the approach of this "just in time" lean production system. It selected trusted suppliers as the sole source of particular components, leading to close collaboration with long-term partners.

Full Press Release: https://pressat.co.uk/releases/just-in-time-meets-just-in-case-how-the-supply-chain-has-to-change-in-an-age-of-rising-costs-and-falling-demand-4eddc09c38bb1d1595066ec358a2718d/