Covid cars, those built with missing spec during the pandemic due to parts shortages, are now causing challenges for leaders in the remarketing sector.
The Vehicle Remarketing Association says up to 14% of cars supplied during the pandemic could be affected in what is just the latest in a series of wake-up calls to anyone responsible for any type of supply chain.
In our work finding and recruiting leaders for companies in the automatic and mobility sector, managing the relationships with suppliers has raced up the priority list of skills needed.
The reasons for this are clear to see. The transition from ICE to EV means a reduction in drivetrain parts needed per vehicle from 400-plus to just a handful, and the remaining suppliers have become more important to their customers.
The UK’s expertise in designing and manufacturing luxury and sports cars relies on high-quality, cutting-edge technology from suppliers. In both scenarios, the supply chains are getting shorter and customers become more dependent on each supplier.
For anyone still of the opinion that customers dictate terms to suppliers in some feudal system, I can confirm that the world has changed. Procurement has evolved because it has been forced to, and the balance of power has shifted from customers to supply chains, driven by advances in technology.
From castings to seats, motors to prototyping, software development to financial services, the new generation of supply chain companies has evolved, and new players have emerged. They have upskilled and invested, bringing in new leaders who understand the value of the technology and services they bring and their importance to their customers and partners.
The sepia-tinged image of the supply chain being small, metal-bashing businesses beholden to their customers has become a thing of the past. Smart companies with advanced technology are enabling world-leading vehicle brands to bring their vision to reality and provide great career opportunities for entrepreneurial leaders.
In our dynamic and challenging industry, companies who can develop and manage balanced relationships with their suppliers are starting to break away from the pack.
And it’s not just manufacturers and component suppliers. It applies to retailers innovating with their customer experience, fleet businesses remarketing their assets and finance companies providing new routes to market.
Those who fail to learn the lesson of history are doomed to repeat it. In my interactions with the supply chain and their customers, I am excited to meet and work with people and organisations who have listened and learned.
The leading suppliers to the automotive and mobility sector can now offer opportunities for leaders to match and, in some cases, surpass what the traditional OEMs can offer in terms of career progression.
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