Technology Changes in the Automotive Industry Raising Risk Levels for Corporate Procurement

Bonn — February 5, 2010 — Far-reaching technology change in the automotive industry presents a hefty challenge to procurement departments across the sector, and supply management executives must consider taking urgent steps to prepare their supply chains for the new realities in the industry, according to a recent analysis from European consultancy BrainNet Supply Management Group AG.

Many of the materials needed for new technologies such as hybrid drives are scarce, subject to price volatility or sourced from politically unstable regions, the consultancy notes. The availability of these resources is becoming one of the major risks to progress. A recent analysis by BrainNet revealed that corporate purchasing departments in the automotive industry are not adequately prepared for these challenges.