b'OCTOBER 25 - NOVEMBER 7, 2021AUTO LOGISTICS 13(STRESScontinued fromsupply chain and the process page 12) becomesmoreopaque.For only accelerate as the industrytheir Tier 2, Tier 3 and Tier shifts to electric vehicles and4suppliers,carmakershave thentoself-drivingvehicles,little, if any, idea who is pur-whichhavefundamentallychasing what from whom in different supply chain priori- whatquantitiesandwhere ties. The battery stands at thethesourcesarelocated. centerofanEV,supportedSimply put, the further down byanarrayofsophisticatedthe supply chain, the less an electronics systems. Ford, forautomaker knows.Thewaycar-Things will move as fast as themakersorderfrom their suppliers com-slowest part of the entire supplypoundsthisdecen-chain. Elon Musk, Tesla CEO tralizedapproach. While vehicle manu-example, has said that its EVsfacturers may advise suppliers require up to 3,000 semicon- on what particular models in ductors,sometentimesthewhat trims are coming down number used in a Ford Focus. thepikeinwhatquantities, As theres less and lesstheymakefirmordersonly internalcombustionenginesixtotwelveweeksbefore carsbeingsold,thewholedelivery. A supplier that buys capacity,thewholesupplyayearsworthofsemicon-chainwilljustcrumble,ductorsinadvancenotonly believesThomasCullen,tiesupworkingcapitaland analystatBritainsTrans- (STRESScontinued on portIntelligence,commonlypage 15)known as Ti. Semiconductors now pro-vide the most obvious choke pointforcarmakers.The chip supply is fundamentally thegoverningfactoronour output, said Musk. This is out of our control.Theacutelackofchips stems from a variety of fac-tors. A few are universal, and haveimpactedeverything from iPhones to smart refrig-erators.Supplyhasbeen constrictedasdemandhas jumped.Fearofchipshort-ages have, if anything, fueled even bigger orders and longer wait times.But according to a McK-insey & Co. report, during the firstmonthsofCOVID-19, automotivesuppliersdrasti-cally cut orders for chips, as salesplummetedandpro-ductionslowed.Meanwhile, manyconsumerelectronics makersincreasedordersto satisfy the sudden shift toward remote work- and connectiv-ity-relatedequipment.When newvehicledemandunex-pectedlysurgedfasterthan expectedinthesecondhalf oflastyear,supplierswere caught out, as chip makers had shiftedproductiontomeetCHANGECHANNELthe demands for other applica- YOURtions, explained McKinsey. C hIpsh It thef an Move cargo more efficiently. Scale operations for future growth.Traditional vehicle man-ufacturing protocol and needs havecompoundedsemicon- Big changes are happening here. Freeport Harbor Channelalready the shortest on the Texas ductor shortages.Gulfwill soon be the deepest channel in the state. Larger vessels will be moving through our The system works some- port than ever before and well be ready for them with new berths and modern cranes. Best of all, thinglikethis:Automakers dontordersemiconductors,we have over 500 acres of adjacent land ready for development.but rely on the various tiered suppliers to do so. DifferentSee the big picture. Its time to change your channel.suppliers are responsible for obtainingdifferentsemicon-ductors,thosenecessaryfor the braking system, the key-less entry, the backup camera,Visit our website or schedule a tour today.theinfotainmentunit.The list goes on and on. Smaller suppliers dont order directly1.800.362.5743fromsemiconductormanu- PortFreeport.comfacturers,butgothrough distributors.Godownthe'