Procurement & Logistics 2025: Inventory = Survival
Anyone working in automotive procurement or logistics today knows the meaning of unpredictability.
In this post, we explain how we responded to the challenges of 2024, how we constantly replanned, and what we learned.
Changing winds – Procurement and logistics challenges in 2025
Three years ago, after internal review and expert consultations, our management decided on a strategic shift. Until then, mould manufacturing and series production supported each other, but they were not a unified market offer.
Mould trials and on-site servicing created effective cooperation. However, we realised that true advantage required a full-service solution. Therefore, we decided to focus on comprehensive projects where mould design, production, and series manufacturing all stayed in-house.
Our primary aim became winning long-term automotive projects, and as a result, building deeper customer relationships.
Since 2021, two large-scale automotive projects have started in this model. Both are now in series production.
A tougher playing field: automotive sector and uncertain supply chains
In 2024, automotive orders dropped across Europe, and consequently several OEMs introduced temporary production stops. This caused revenue loss, slower inventory turnover, and even temporary shutdowns for many suppliers.
Therefore, we adopted a cautious inventory policy, significantly reducing safety stocks for raw materials, components, and finished goods. By late 2024, this approach seemed wise.
On the one hand, cash flow became critical in a weak economy. On the other hand, fluctuating demand and poor forecasts made project stoppages a real threat.
We wanted to minimise risks, especially the danger of obsolete and unused stock. However, from the last quarter of 2024, new unexpected challenges appeared.
Longer lead times, unpredictable suppliers
When projects restarted, we first relied on existing stock, and then resumed raw material procurement.
Yet suddenly, several suppliers extended lead times without notice, from 6–8 weeks to even 20 weeks. They had likely adopted the same cautious inventory policy, thus pushing their risks back to customers. By early 2025, it was clear that safety stock restructuring was unavoidable.
The longer lead times forced us to plan for higher stock levels once again.
Nevertheless, the difficulties did not end there.
Critical supplier failure – how we responded
One supplier could not meet the already extended 20-week lead time because of a serious machine breakdown.
Consequently, our production schedule was immediately affected, creating a bottleneck that risked customer deliveries.
Our safety stock covered the original 20 weeks, but the additional weeks were impossible to absorb.
Our response included three steps:
- We arranged express delivery at our own cost, later reclaiming expenses from the supplier.
- We organised extra production shifts to process delayed components quickly.
- We shipped express deliveries to customers across Europe to avoid production line stops.
Key takeaways
The beginning of 2025 proved once more that procurement and logistics are not only operational.
They are strategic, business-critical functions for every SME in the automotive supply chain.
Success now requires flexibility, fast responses, proactive inventory management, and strong supplier collaboration.
And often, it demands a greater willingness to accept risks than in the past.