Sustainable Supply Chains for Automotive Industry Growth - News

NK Modi, Executive Director, Minda Corporation, emphasizes the importance of resilient supply chains in driving automotive industry growth. Tier one suppliers, crucial in the value chain, are leading the electrification push. They have overcome challenges like supply chain interruptions, semiconductor crises, fluctuating raw material prices, and logistics concerns. OEMs acknowledge the need for innovation and visibility beyond tier one suppliers because lower-tier disruptions might cause issues. Tier one suppliers can boost sub-tier visibility and empower the automotive manufacturing ecosystem. Digitalizing the supply chain will reveal automotive networks, value chain participants, and flows, enabling this change.
This circular supply chain concept will improve collaboration, efficiency, and sustainability. OEMs use tier one vendors for mass-produced hardware and software solutions to provide quality control. Maintaining high quality standards requires tighter controls and long-term supplier relationships. 
Tier one suppliers can create supplier quality and development teams, audits, and training programs to fill talent gaps and understand customer needs. Sustainability is becoming more important for automotive suppliers, and the supply chain is a good place to start growing. Tier one suppliers’ commitment to innovation and collaboration will form a successful and sustainable automotive ecosystem.