Sharing data is key to reducing supply-chain disruptions, Renault exec says

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The emblem of carmaker Renault is seen at a dealership in Paris, France, August 15, 2021. REUTERS/Sarah Meyssonnier

MILAN, Oct 21 (Reuters) – Automakers have lots of information they will share with suppliers, logistic companions and governments to assist scale back supply-chain disruptions, Renault alliance group’s VP of provide chain, Jean-Francois Salles, mentioned on Thursday.

Salles mentioned the transition to electrical mobility, mixed with local weather mandates and disruptions following the COVID pandemic, had been making provide administration difficult for Renault and different automakers.

“Now we have to anticipate extra frequent and extra prolonged opposed occasions, and the trade has to adapt to it,” he mentioned throughout the Reuters Occasions Automotive Summit. “Now we have to simplify processes and velocity up operation.”

Renault alliance group contains the French carmakers’s Japanese companions Nissan Motors and Mitsubishi Motors .

Salles mentioned a strategy to scale back disruptions was to share information with stakeholders.

“In fact not every part could be shared, however there’s lots of information that we are able to share,” he mentioned.

Renault expects to provide not less than 300,000 fewer automobiles this yr on account of a world scarcity of semiconductors, sources instructed Reuters earlier this week. Data supplier IHS Markit estimates chip shortages may price the worldwide automotive trade round 11 million automobiles in misplaced manufacturing in 2021.

In a separate panel, different executives mentioned there must be larger transparency and knowledge sharing between automakers and their suppliers, even right down to smaller sub-suppliers.

“We give out suppliers too typically very brief horizons of demand at very granular degree,” Volvo Vehicles’ (GEELY.UL) provide chain vp, Martin Nook, mentioned. “Something past the short-term horizon, we provide fairly vanilla unfold car line averages. That creates an issue.”

Faurecia SA government vp Thorsten Muschal, who additionally heads CLEPA, the European Affiliation of Automotive Suppliers, mentioned the trade wants to maneuver towards larger visibility – wanting forward not less than three to 4 weeks for automakers’ manufacturing plans.

Reporting by Giulio Piovaccari in Milan
Extra reporting by Ben Klayman in Detroit
Enhancing by Agnieszka Flak and Matthew Lewis


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