BMW Has Completely New Supply Chain Approach After Covid: CEO
Oliver Zipse at the Shanghai auto show on April 18.
Photographer: Hector Retamal/AFP/Getty Images
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BMW AG has adopted “a completely new approach” to supply chain management as a result of Covid, with a much deeper focus on upstream companies that are three or four steps removed from supplying the German automaker, Chief Executive Officer Oliver Zipse said during the Shanghai auto show.
The process now goes “all the way back” to tier five, six and even seven suppliers in an attempt to limit risk, and BMW is also seeking to do as much manufacturing as possible in the countries it sells cars, Zipse said in a media briefing Tuesday, noting that the “local-for-local” strategy applies to China as well as Europe and the US.