The impact of Yellow’s bankruptcy on the auto industry remains uncertain, according to Dan Hearsch, managing director at AlixPartners. He suggests that any disruptions would likely be specific to certain models or carriers, rather than widespread transportation concerns.
However, suppliers have been affected by increased uncertainty in recent years. Shortages of truck drivers, rail cars, and delays at ports have forced parts makers and tool and die companies to reassess their supply chains, explains Harbour.
Logistics, which are often taken for granted, have proven to be more challenging than expected. Premium freight became a major issue during the early stages of the pandemic, especially with supply disruptions like the microchip shortage, shares Robinet.
The impact of logistics issues on a supplier’s bottom line varies depending on their physical footprint. For some, logistics costs are relatively small, but for those with larger components or subsystems from lower-cost locations like Mexico, logistics can be a significant expense, notes Robinet.
Therefore, suppliers may need to reevaluate their manufacturing footprints and supply chains. Location relative to assembly plants will be a key consideration in these discussions.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
