IQ Insider

Defining Which Components Tier-One Suppliers Employ in Sub-Systems

Written by Supplyframe | Sep 7, 2023 7:08:37 PM

Volkswagen Group is changing how it procures electronic systems and components for longer-term supply assurance. In concert with its tier-one suppliers, Volkswagen is directing which components and suppliers will be used by its vendors. Full component transparency allows for better monitoring supply chain dimensions to mitigate risk. While many OEMs cannot establish direct manufacturer purchasing relationships for strategic component technologies like Volkswagen now does with NXP and Infineon, exact knowledge of component bills-of-materials in OEM sub-system suppliers should be the goal.