Chip shortage to cost automakers $210 billion in revenue in 2021

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Soon there will be a time for proactive recovery, rather than just protective recovery. When that time comes, the clamour to be front of the queue will be fierce. Automotive firms with more robust supply chain planning, proactive risk monitoring capabilities, and tools to facilitate strategic collaboration with suppliers – relying on dual and multi-sourcing strategies – will be able to fare better. Suppliers are likely to prioritise and place their trust in customers of choice that share the same values; that support their sustainability objectives; that understand how to transform data into actionable strategy; and who have shown similar ambition to improve their own insights across the supply chain.”

Ultimately, automotive manufacturers should be looking to adopt improved communication and collaboration tools to facilitate their own digital progress, while sharing capabilities with those they need to keep onside in the new world.