The COVID-19 pandemic caused unprecedented disruptions in the auto industry, severely impacting demand, supply chains, and production stability. Problem: During economic downturns, auto spare parts companies face liquidity stress, vendor instability, labour issues, and unpredictable demand, leading to misaligned production, delayed deliveries, and stress from auto Original Equipment Manufacturers (OEMs). Solution: Introduce pull-based replenishment to stabilise supply-demand alignment, dynamic buffer management, and proactive supplier support initiatives, ensuring seamless operations and agility.  Benefits: Reduced lead times, efficient working capital usage, production stability, improved profitability, and the ability to expand market share amidst challenges.

Key Takeaways

Lockdown due to COVID-19 had a significant impact on the auto spares sector. What can the industry do to get back on the growth trajectory?

Shifting gears in the auto spare parts business

<h4>Shifting gears in auto spare parts business</h4>

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Discover how Tier-1 suppliers and OEMs can stabilise operations, improve working capital, and build supply chain agility amidst market downturns.