1、Automotive Supply Chain:Pursuing Long-Term Resilience#GetTheFutureYouWantPURSUING LONG-TERM RESILIENCEAutomotive supply chainExecutive Summary The nearshoring of automotive procurement adds resilience tothe supply chain According to our survey findings,the proportion of supply obtained from offshore

2、 locations has fallen by 22 percent over the past two years.This has contributed to an improvement in supply chain resilience,as evidenced by increased market confidence and a reduction in order backlogs.We expect this trend to accelerate,driven by regulatory and government policy,in particular that

3、 pertaining to the growing adoption of electric vehicles(EVs)and semiconductors.While inventory building has boosted short-term resilience,it is not a feasible long-term strategyIncreases in inventory,funded by working capital,have been used by both OEMs and suppliers to inject resilience into the s

4、upply chain.Higher stock levels mean that manufacturing can continue without disruption,even if supply is interrupted.However,suppliers are bearing most of the financial burden of such a short-term strategy,usually paying higher rates of interest than OEMs do,making it non-viable in the long term.Su

5、stainability efforts are faltering as automotive organizations fire-fight supply chain crises Successive supply chain crises have sapped automakers time and diverted focus and money away from sustainability initiatives.This is particularly true of suppliers,whose sustainability investments have drop

6、ped significantly(in 22%the proportion of supply obtained from offshore locations has fallen by 22 percent over the past two years0102032Capgemini Research Institute 2023Automotive Supply Chain:Pursuing Long-Term ResilienceExecutive Summary contrast,OEMs investments have increased slightly).One in t