Supply chain is a major global headline these days, and has left many in the fleet industry scrambling to understand what to do next. Vehicle deliveries are delayed, microchips are a mystery, and parts and supplies are holding back vehicle upgrades and upfits. With those unstable occurrences in mind, ARI hosted a webinar around the supply chain industry, to help make sense of the future of the fleet industry.
Hosted by Holman Fleet and Mobility President Bob White, we heard interesting discussions around vehicles, parts, and microchips from Holman Enterprises Chief Procurement Officer Frank Carbone, ARI VP of North American Supply Chain Ted Davis, and Holman Enterprises VP of Technical Sales Joe Foster.
Frank kicked things off by giving background on the factors that have contributed to this supply chain disruption. They include COVID-19, “Black Swan” events like the Suez Canal blockage and extensive power outages in Texas, the growing demand for new cars with U.S. stimulus checks, and the need for sanitary safe spaces.
From there, Joe took us through the importance of recovery and mitigation. He broke down a variety of ways to manage your fleet during a time of supply chain uncertainty, including:
- Increased risk mitigation
- Diversification of supplier base to reduce risky supply chains
- Pre-buying safety stock
- Taking advantage of automation and collaboration
- Rethinking lean strategies to work with the times
With that in mind, Ted took a macro-level look at the impact on supply chain, studying how these changes might impact the budgeting and expenditure for fleets of various sizes. He took a look at inventory timelines and microchip shortages specifically, noting order schedule delays as a major issue that continues to be a conversation.
Those delays have led to a new trend in the used vehicle market. Ted pointed out that the used vehicle market is the strongest it has been since 1953, making production, licensing and compliance, and vehicle remarketing conversations around used vehicles a major conversation for the future.
Through it all, ARI remains focused on helping our customers navigate this new world. We’re doing that by:
- Increasing the immediacy around order processing
- Preordering safety stock and vehicles for the future
- Elevating our communication strategy
- Stretching our contingency plans; going beyond a Plan B to include Plan C and Plan D in our customer strategy
Interested in more supply chain opportunities? ARI will be hosting another webinar titled “Sustainable Fleet Solutions: The Art of the Possible” on June 17 at 2 pm EDT. Click here to register today.