Change may be constant, but I, along with the other Auto Supply Chain Prophets, are committed to helping people see and prepare for the future with data-driven insights.
A great example of this, if I’m being honest, is the UAW-Big 3 strike. When Shawn Fain took the helm of the UAW in March with a pledge to renegotiate contracts, we knew change was in the air. What we didn’t know was whether the process would culminate in a strike or how long it would last. It hardly matters, however, because these types of things are beyond our control.
At the Auto Supply Chain Prophets, we prefer to focus on what we can control. That’s because change, in itself, isn’t a problem and doesn’t become one unless you’re unprepared. The best way to prepare is by keeping a pulse on our ever-changing industry, deploying the right digital technologies when and where you need them, and taking a proactive approach to resilience planning. And the best place to start? You guessed it – our podcast and whitepaper, “The 24 Essential Supply Chain Processes.”
I have a lot more to say on this topic, but I’ll leave it here because there’s a lot to unpack in this wrap-up, including everything you need to know for post-strike success now and in the future. In case we don’t touch base until the New Year, I want you to know how grateful Cathy, Jan and I are for your support. Our listenership hit 5,000 downloads across 70 countries. We are so grateful for our guests and listeners. Our industry is stronger, and more resilient, when we all come together, and we feel beyond fortunate to be your window in the future of our industry. Thank you!
If you haven’t yet listened to or read about them, take a look at our wrap-up blogs covering past episodes of the Auto Supply Chain Prophets podcast.
Episode #41: Preparing for Post-Strike Success in Automotive Supply Chains
The strike between the UAW and General Motors, Ford and Stellantis is over and Cathy, Jan and I couldn’t be more relieved – but we’re still feeling a bit anxious, and I bet you are, too. The six-week strike was the longest in 25 years and will continue to have a profound impact on our industry in several ways, some less obvious than others. The most immediate priority, however, is ensuring you’re ready to hit the ground running in a post-strike world, so we’ll put a pin in the ripple effect until Episode #42.
In Episode #41, we caught up with Bill Hurles, former Executive Director of Supply Chain at GM. With more than 38 years of experience in the automotive industry and currently serving as Executive Director of the Global Supply Chain Resilience Council, Bill has been through more operational restarts than most of us and knows a thing or two about getting a facility back online quickly and efficiently.
The time to begin preparing for restarts is before a strike, or any crisis, is technically over, explains Bill. Leaders need to plan ahead for changes in production volumes and schedules, and the best way to do that is by forging strong relationships with suppliers and breaking down operational silos that prevent companies from responding to disruption with speed and agility. Technology, including tools like Electronic Data Interchange (EDI) that facilitate effective communication, is also your friend.
“The better an organization can work to eliminate silos, the more efficient they’re going to be, the communication is going to be better, people are going to be able to anticipate what is being done, and can then thereby react quicker,” explains Bill.
Even though the strike is over, the aftermath is just beginning and we all know it isn’t the only disruptive force in our industry right now. That’s why resilience-building should be a year-round priority and a great place to start is MMOG/LE Chapter 6 on supplier management and, of course, “The 24 Essential Supply Chain Processes,” from your very own auto supply chain prophets.
Click here to listen to the full episode.
Episode #42: UAW Strike, Supply Chain Turmoil, and Their Role in the EV Journey
In this episode, as promised, we take a deep dive into the lingering effects of the UAW strike with none other than Paul Eichenberg, Managing Director of Paul Eichenberg Strategic Consulting. As Paul explains in this blog post, change isn’t new in the automotive industry, but the pace at which it’s occurring is unprecedented and disruptive events like strikes or new technologies are changing the way companies compete.
“The heart of the issue comes down to the battery facilities and the union’s desire to unionize those facilities for a couple of different reasons, but most importantly because that’s the future of the industry,” says Paul. “And if they aren’t tied to those vehicles of the future, they really don’t have as strong of a future.”
Paul makes a really good point because the UAW-Big 3 strike means different things for different companies and their employees. While production came to a standstill at the Big 3, it kicked into high gear for other players and created a wider window of opportunity to compete. This is of particular importance because, as we’ve discussed previously, emerging suppliers and automakers in the electric vehicle (EV) value chain are under incredible pressure to bring new technologies to market as quickly – and affordably – as possible. If they don’t, someone else will, and that competitive advantage diminishes.
Paul was one of the very few analysts who forecasted, at the time, the end of the strike stating it would be over by Halloween (it ended the day before) and the reasons why. Additionally, he stated the latest strike, which certainly won’t be the last, is also raising the compensation bar for everyone in the industry, which could alter the economics behind planned investments in EVs and battery factories. Paul urges leaders to recognize that the 20-year cycle of disruption isn’t going to end any time soon, and they need to prepare with adequate scenario planning, supply chain resilience and future-focused strategies.
“What you have to be thinking about is where is disruption going to come from and why? And then, how do I start to put together scenarios to plan so that when those things happen, I’m prepared; I know how the organization is going to react,” explains Paul.
Click here to listen to the full episode.
Episode #43: Preparing the Next Generation of Supply Chain Leaders through Innovative Education, Gamification, and Talent Focus
In Episodes 41 and 42, we discuss post-strike restarts and how the UAW-Big 3 strike is reshaping the automotive industry, but we’d be remiss not to hone in on another pillar of recent events and huge opportunity to future-proof your organization. I’m talking about your people; the ones you have now who would benefit from continuing education and the supply chain leaders of the future who you can help cultivate and attract.
You probably won’t be surprised to learn that talent shortages have been problematic for 54% of supply chain organizations over the last year, and 70% of leaders expect the trend to persist. Supporting the supply chain leaders of tomorrow, today, is mission-critical. In this episode, we touch base with Thomas Kull, a professor of Supply Chain Management at Arizona State University, to discover some of the exciting ways training hubs are leading the charge.
“I think probably one of the largest areas that we are trying to push into and continually are growing is the gamification of education. The nice thing is that everyone likes it – even seasoned executives enjoy these ‘video games.’ I believe that gamification will only continue to flourish,” says Thomas.
Thomas’ perspective on gamification aligns well with what we’re seeing on the plant floor, and it’s part of the reason QAD Redzone has become so popular. The solution helps gamify the production environment, rewarding workers for a job well done and giving leadership the real-time data they need to make informed decisions.
Tools like QAD Redzone can also help mitigate the culture shock many students experience when entering the workforce. Setting reasonable expectations is important for boosting retention rates, especially among younger generations, explains Thomas. In addition to using digital tools that create a positive experience for incoming workers, leaders should ask culture-related questions, such as how a candidate would handle challenges in the workplace, during the interview process.
Click here to listen to the full episode.
Episode #44: Building a Future-Ready Supply Chain through Digitization, Sustainability, and Diversity
We’re always operating in the fast lane in the automotive world, so much so that it’s easy to put important, yet less visible, priorities on the back burner. In this episode, we hit the brakes to refocus on what it takes to be an effective leader in today’s automotive supply chain with Anthony Emery, Supply Chain and Logistics Director for PHINIA.
As you may know, PHINIA is deeply committed to using today’s advanced technologies to build a carbon-free tomorrow and, as a thought leader in the space, Anthony knows a thing or two about striking a balance between supply chain digitization, profitability and environmental, social, and corporate governance (ESG) initiatives. In short, you can have it all, and they can be mutually beneficial.
“Diversity, equity, and inclusion (DE&I) don’t need to be a hot topic; it needs to be natural, and it needs to be organic, and that’s what we’re doing right now,” says Anthony. One way PHINIA is embracing DE&I is through blind CVs, which involves removing all personal data and assessing applications based on pure skill.
“Build your team, build your process, like you’re going to get hit by a bus tomorrow because when you’re gone, you want them, your team, your company to be in its best and most optimal position, and that mentality then needs to go on through,” says Anthony.
Click here to listen to the full episode.
Episode #45: How Electric Vehicles are Transforming Supply Chain Dynamics
Before we dive into this episode, I have to share an interesting statistic I saw the other day: New battery electric vehicles (BEV) in the US are $14,300 cheaper now, on average, than they were just one year ago. That’s only $2,800 more than the average new internal combustion engine (ICE) vehicle!
This simple snippet blew my mind, and drives home many of the topics we discuss in this episode featuring Michael Robinet, Executive Director of S&P Global Mobility. With more than 30 years in the industry, Michael has seen the rise and fall of many automotive technologies – and knows firsthand how bumpy the road to widespread adoption can be.
“Even with the faster development times of BEVs, it’s still a long process to work through safety and reliability and building an assembly plant, building a supply base, building all that sourcing. As you guys well know, it doesn’t happen overnight. It is such a process,” states Michael.
Michael takes us on a deep dive into the complexities of transitioning to ICE to BEV, including including stiff competition from market entrants, shifting supply chains and the risk involved with ramping up production while waiting for consumer demand to really pick up.
“We could wish that people want to buy better electric vehicles, but if they’re not priced appropriately or don’t have the right total cost equation for the customer, well, that’s a problem,” explains Michael.
Click here to listen to the full episode.
Want to learn more? Visit the Auto Supply Chain Prophets website to download and catch up on all the latest podcast episodes.
This article was co-written by Cathy Fisher, founder and president of Quistem, LLC.
