I had the opportunity to present in the Warner panel for OESA’s West Michigan Regional Supplier’s meeting in December. We spoke about how best to manage supply chain risk in light of certain industry trends heading into 2017. In our discussion, we addressed the increased frequency of many OEMs pursuing cost recovery actions against the supplier base for their elevated recall and warranty costs in 2016 as well as the OEMs increased reliance on suppliers for technological innovation and design. With tech collaboration only expected to increase, suppliers are expected to take on greater warranty exposure – and face more cost recovery actions – in 2017.
With these trends in mind, here are three key takeaways for suppliers to keep in mind heading into 2017:
Such preparations can be critical to providing a timely response to any field complaints and to complying with NHTSA’s unforgiving reporting deadlines for any safety related issues.
I hope you keep these three takeaways in mind as you plan and prepare for 2017. I also encourage you to attend OESA’s February 2, 2017, meeting where Warner will continue its discussions with OESA members on the expected trends that auto suppliers should be prepared for in 2017. For more details and to register, click here. Hope to see you there.
