THE TIER 1 REVOLUTION
Inevitable in the Off-Highway Industry
Times are changing and the off-highway industry is under pressure to establish close relationships with Tier 1 suppliers to maximize the leverage of their supply chain. Some call this simplification, others call it supplier consolidation or supply chain management. Whatever you choose to call it, the off-highway industry players have to catch up or otherwise they’ll not stay competitive.
Fortaco’s President & CEO Lars Hellberg sees the Tier 1 revolution inevitable for the industry and the transition to move towards Tier 1 suppliers is not an easy one. Despite this he challenges OEMs to escape from maintaining thousands of component suppliers on a best-cost basis and move toward fewer suppliers which can offer strategic partnership and the best total offering in terms of design capabilities, product quality, delivery and cost.
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