This issue of Moving Parts, analyses key automotive trends, operational supply chain factors, monitoring and measuring the financial health and liquidity of suppliers, and discusses five rules for tax efficiency in supply chains.
- Automotive companies should develop more robust capability in their supply chains than simply being able to find the lowest cost of production.
- Geopolitics, government incentives, taxes/customs/duties, shipping/logistics, labour rates/skill sets, infrastructure, and material requirements are all areas that require thoughtful analysis on a micro and macro basis.
- Companies need to develop risk models that take into consideration those unforeseen risks and perceived low probability events that can’t be readily forecast but could result in consequential and adverse outcomes.