5 Factors to Consider When Choosing an Automotive Supplier
The Coronavirus pandemic took a temporary toll on the automotive industry. In fact, global sales are expected to decline by roughly 14% in 2020.
While 2020 was a tough year, there is optimism for 2021. The government-mandated lockdowns have created pent up demand in the automobile industry. Buoyed by low-interest rates, experts believe that profits for global automotive OEMs will increase by 50%.
This means that vehicle manufacturers will be ramping up production in 2020. Read on to learn how to select the right automotive supplier. Explore five factors to consider when choosing a supplier for your parts needs.
1. Delivery Schedule
Can the supplier meet your schedule requirements? Strong demand for new cars, especially for manufacturers like Tesla, is anticipated as we move into 2021.
This is going to present a challenge for suppliers without the capability to ramp up parts production. The best suppliers are using techniques like rapid prototyping to meet accelerated delivery needs.
Before signing a contract, you should verify that the supplier can meet your schedule requirement. Ideally, you should receive this information when obtaining a price quote. The supplier should indicate how many days after receipt of the order for the ordered parts.
The top vehicle manufacturers demand high quality. They cannot sacrifice their brand or reputation for a poorly produced product.
Your search for a supplier should verify that they have the proper certifications and quality control procedures. For example, Mayco is IATF-16949 certified. This certification is for the manufacture and assembly of plastic injection molded, thermoformed, and painted interior and exterior trim products.
Vehicle manufacturers can feel confident buying interior and exterior trim products thanks to this certification. It means they are following robust quality assurance and inspection process prior to delivery.
Any company that says that price is not a factor is being dishonest. Every top auto manufacturer is looking to cut their bottom line.
While quality must not be sacrificed, manufacturers are also looking for competitive pricing. With the learning curve and high economies of scale, large suppliers can reduce the price of parts without sacrificing quality.
4. Covid-19 Preparedness
Unfortunately, the world needs to learn to live with Covid-19. Suppliers need to be prepared to prevent and mitigate the spread of the coronavirus.
Vehicle manufacturers cannot afford to lose parts distribution because of a community spread at a supplier. The supplier should have sanitation processes in place to prevent the spread of the virus.
In addition, they should have policies in place to quarantine employees who are Covid-19 positive. Lastly, they should utilize contact tracing to minimize the impact on the workforce.
5. Environmentally Conscious
Lastly, suppliers should be committed to protecting the environment. Suppliers like Mayco are responsible for recycling millions of pounds of plastic.
There should also be an emphasis on climate change. The best suppliers are actively working to reduce their carbon footprint.
A Recap of Choosing the Right Automotive Supplier
You can find great parts suppliers by focusing on the right elements. Factors like meeting delivery schedules and reviewing quality certifications are certain to help.
If you are still looking for the right automotive supplier, contact us today to speak with a professional.