How OEM’s are redefining their supply chain during lockdown

During these challenging times many global OEM’s are experiencing issues throughout their supply chain. However, for some this disruption has highlighted the dependencies on their supply chain partners and where some have been affected more that other in their ability to continue providing the service the core OEM depends on.

This was highlighted recently in the car manufacturing industry. Here some plants ‘closed’ production due to not being able to keep assembly workers safe and the lack of components able to come through. This loss of production was prevented for some, where system best practices where shared and a joint approach to delivery was implemented.

As we emerge from the economic and social effects of the pandemic, we look at how OEM’s are working with their supply chain to promote a more flexible, joined up approach to delivery. An approach that will ensure a successful future for everyone.

Embrace the change

Many OEM’s exist in an ecosystem of small, specialist suppliers. Each one an expert at what they do. The recent economic conditions demonstrated the fragility many supply chains face what a single component provider is unable to continue with demand. These weaker links show how larger OEM’s need to work with suppliers to improve and unify systems to ensure changing working conditions can adapt to uncertain and volatile market conditions.

The new ‘Normal’ is uncertain, however if OEM’s are able to embrace and support their partners. This shift in approach could lead to a more symbiotic approach to IT infrastructure and systems within an entire supply chain. Reducing costs and sharing insight along the way.

The need to adapt & lead

The last 6 months have demonstrated how we all need to become more adaptive and flexible as we await an uncertain future. As many OEMs remain dependent on an ecosystem of suppliers, who have all been affected by the pandemic in different ways, we see the need for core OEM’s to work closer with every aspect of their supply chain to ensure systems can adapt to meet a changing and uncertain future.

Leverage consolidation of IT infrastructure

Many OEM’s rely on smaller, specialist suppliers to fulfill their entire supply chain. Many of these smaller organisations cannot leverage the discounts larger organisations achieve on their IT purchasing. This presents an opportunity for larger OEMs to pass on purchasing discounts to their supply chain; Resulting in a unified approach to systems and buying.

Work with a global partner that can support your entire supply chain

Recarta IT work with some of the worlds most complex OEM providers. Together with HPE OEM we help dozens of supply chains to help keep systems operable and costs minimal.


If you are responsible for an OEM’s IT infrastructure and would like to learn more about how others are working with Recarta and HPE to reduce costs an increase flexibility, contact us today.

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