BORG Automotive declares war on delivery bottlenecks

BORG Automotive declares war on delivery bottlenecks

Europe has entered the third year of the pandemic. Last year, many manufacturers again had to struggle with vulnerable supply chains. Although BORG Automotive, the company that sells remanufactured spare parts under the brands Elstock, Lucas, DRI and TMI, was also affected by impaired international supply chains, the company's overall product availability was not at risk. 

“We only source a very limited number of components from outside Europe - so we are not affected by the problems of international supply chains and container shortages to the same extent as other companies,” explains Ernst Kildegaard, Group Supply Chain Director at the BORG Automotive Group. “The bottom line is that we are proud of the high availability and delivery frequency that we were able to ensure last year.” 

Nevertheless, BORG Automotive has set itself the goal of making the supply chain even more resilient. Firstly, because the company assumes that the pandemic-related restrictions will keep the industry busy well into 2022. Secondly, because it is seeing increasing demand for its remanufactured starter motors, alternators,  air conditioning compressors, EGR valves, turbochargers, steering gears, steering pumps and brake calipers.

"We offer remanufactured products in OEM quality that are manufactured in Europe. This ensures short delivery times. In addition, our supply chains are short, allowing us to respond quickly to changes in demand. Many customers have found that our European production sites reduce supply risk in times of crisis. Interest in our products is therefore increasing, also due to the growing importance of sustainable solutions," says Kildegaard. 

In order to meet the higher demand during and after the pandemic, the remanufacturer has decided on far-reaching measures and is gradually putting them into practice. An example of this is a high inventory of old parts, the so-called “cores”. BORG Automotive currently has more than one million old parts in stock that are suitable for remanufacturing. The entire storage capacity at the Polish logistics site is now to be expanded, as are the production sites in Zdunska Wola and Lublin, Poland. In Lublin, capacity will be increased to three times the current production volume. The expansion in Zdunska Wola will have an impact this year, the expansion in Lublin is scheduled to begin this year and is expected to be completed in 2024.

The pandemic and global supply chain challenges have had a far-reaching impact on inventory levels and delivery capabilities in markets. “We are therefore noticing a tendency to increasingly use European suppliers to ensure deliveries and product availability even in times of crisis,” says Kildegaard.