One of the biggest concerns modern manufacturers face is ensuring their supply chains are as strong and resilient as possible, especially amid numerous external factors beyond their control.
The automotive industry, in particular, faces its own significant supply chain challenges, especially when automakers use multiple suppliers to procure the parts and components needed to keep production moving. These supply chain issues include:
Supplier Financial Distress
Many automotive parts manufacturers operate on razor-thin margins and, in some cases, struggle with debt. This supplier stress creates a constant risk of production stoppages if manufacturing lines shrink or stop altogether to give the supplier some breathing room. This situation creates a domino effect, delaying parts delivery to the OEM or Tier 1, 2, and 3 suppliers and impacting the whole downstream production schedule, potentially stretching the time to market.
Raw Material Volatility
The auto industry periodically faces extreme shortages in globally sourced metals and specialty alloys. The volatility in available raw materials continually prompts manufacturers to overhaul procurement strategies in an effort to find new or alternate suppliers who can offer timely delivery at a reasonable price point.
EV and Software Supply Complexity
The shift toward electric vehicles (EVs) and software-defined vehicles requires significant modifications to supply chains. Automakers must procure specialized battery components and manage software/microcontroller integration, while simultaneously navigating volatile shifts in consumer demand between EVs and hybrid models.
Multi-Tier Visibility Gaps
North American supply chains are highly integrated, with parts crossing borders multiple times. A lack of sub-tier visibility, even into how the raw material was extracted, makes it difficult for OEMs to predict disruptions, track parts, and comply with evolving environmental regulations.
Labor And Skill Shortages
The push toward advanced manufacturing and localized production has created a severe deficit in skilled labor. Finding workers who possess the technical knowledge required for modern precision-machined auto parts production and digital supply chain management remains a critical bottleneck.
Supply chain resiliency is one of the biggest reasons that automotive OEMs and Tier 1, 2, and 3 vehicle parts and equipment suppliers prefer to work with one-stop precision machine component manufacturers like Kenona Industries/Arrow Automotive. Partnering with our team helps improve production schedules and time-to-market predictability.
How Kenona Industries/Arrow Automotive Creates A More Resilient Automotive Supply Chain
At Kenona Industries/Arrow Automotive, we operate a full-service model that can bring the entire manufacturing supply chain in-house. No matter how big or complex the project is, or if you need large-volume production, we can help with expert engineering, precision machining, fabrication, coatings, finishing, and assembly solutions, all under one roof in most cases.
Here are just some of the advantages of partnering with our skilled and experienced team of precision machine professionals:
Faster Delivery Of Products
Transporting your parts between solution providers costs time and money, as well as creating weaknesses in your supply chain should delivery be interrupted. With Kenona Industries, we handle everything in-house, so handing off completed parts for downstream processing takes minutes rather than days or weeks.
Improved Cost Control
Our one-stop model eliminates the frustrating, time-consuming process of obtaining quotes from multiple suppliers. With the entire manufacturing supply chain under one roof, you’ll get direct insight into all costs on one document, allowing for more precise budgeting and optimized cost management.
Streamlined Collaboration Between Stakeholders
Coordinating collaboration among multiple suppliers can take unnecessary time and effort, especially if they are in different time zones, which can lead to production delays. With Kenona Industries, our internal teams can communicate more easily, ensuring consistent collaboration, higher-quality results, and greater visibility into your projects.
Read More: Why Automotive OEMs Are Consolidating Their Precision-Machined Parts Projects
Tighter Data Security
Data security for proprietary projects is a big concern among manufacturers. Working with a single-source supplier like Kenona Industries means everyone works under the same security protocols and eliminates the need to share your data with multiple companies. Additionally, as an ITAR-compliant company, we work under strict guidelines to ensure defense project data is safe and secure.
Working with Kenona Industries not only ensures you get high-quality components built for reliable performance but also protects your metalworking supply chain by keeping the entire metalworking process under one roof.
Our vast array of capabilities includes, but is not limited to:
- Engineering
- Fixture builds
- Tooling
- Automation
- CNC machining and fabrication
- Welding
- Metrology
- Leak testing
- Finishing
- Coating
- Assembly
The benefits to your company are less frustration, optimized production scheduling, and more consistent product quality that keeps you competitive and profitable.
When you’re ready to start building, give our team of experts a call. You’ll be glad you did!
Read More: 7 Cost-Effective Ways Kenona’s Automation Technology Benefits Our Customers
Contact Kenona Industries For A Quote On Your Next Design And Fabrication Project
Kenona Industries is a world-class supplier of automotive components to leading OEMs and Tier 1, 2, and 3 manufacturers. Discover what sets us apart by requesting a quote for your next project today!