- Supply chain managers worry about a great many risks. Economic changes should now be added to the list.
- The automobile industry’s chip shortage is a shining example of a predictable economic risk that caught purchasing managers unaware.
- Before the pandemic, semiconductor manufacturers were stressed in their ability to deliver chips for a variety of reasons including production problems at Intel and U.S. restrictions on Chinese manufacturers’ sales.
- When the pandemic hit, the automobile industry girded for recession and cut back on orders to their suppliers.
For further details see:
Supply Chain Economics: Car Chip Shortage