Local purchasing winning out over global in automotive supply chain


The March 2012 Original Equipment Suppliers Association’s Suppler Barometer reveals that the outlook remains positive with a Supplier Sentiment Index of 64. However that represents a two-point decrease from the January value, reflecting that while “North American vehicle sales and production schedules are improving, gas prices, the Iran nuclear issues, the European debt concerns and upcoming U.S. presidential election are keeping the sentiment outlook relatively level,” said the report.

Most suppliers remain confident in their internal and sub-tier supply chain strategies and effectiveness to mitigate supply chain shortages in 2012. Complementing these findings, 92% of respondents to the March survey feel confident that their company will be able to meet all customer releases over the next three months.

Some respondent comments included “Schedules are up”; “Volumes have increased”; and “Orders are high but we are cautiously optimistic.” One commented that “OEMs still showing signs of bad behavior relative to capacity.” ...
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