Automotive logistics

The automotive industry was amongst the hardest hit as a result of the financial crisis of 2008. The impact was instant and massive in scale. Production was reduced with entire factories taken out of production for extended periods. Sales of new cars fell by double digits, and some models were lost to the landscape. The supply chain was of course severely affected. This not only affected suppliers but automotive logistics service providers, freight forwarders and shipping lines.

Having been an industry in the forefront of the use of “lean” principles and supply chain integration, the response to downturn and recovery has further highlighted the critical importance of that supply chain with further review, re-engineering and improvement programmes initiated.  Flexibility, agility, collaboration and asset light are all being examined and introduced by the industry. As the consumer of 25% of the world’s steel it is clear to see how its scale affects the world economy.

The car manufacturers either operate in effect as integrators or indeed employ integrators or lead automotive logistics providers. Execution of large numbers of transactions, both pre and post production are in the hands of businesses of all size. The logistics industry should continue to reflect the new demands from this industry and put in place appropriate services that are easily integrated into a larger enterprise.

We have seen a number of issues related to these market changes:

  • Supply Chain Visibility and a feeling that existing systems and process are not sufficient to avoid costly mistakes
  • Cost containment is challenged by fixed assets, large projects and less than optimal logistics
  • Customer demands for finished vehicles; design and introduction, volume forecasts, production planning with OEMs and the need for better collaboration
  • Customer demands for after sales parts;  inventory planning and deployment
  • Globalisation of supply, manufacturing and specialisation of OEMs
  • Packaging Equipment cost and control within the supply chain
  • Long distance transport of finished vehicles and bottlenecks

Graphene Partners has a range of skills and experience to support Car manufacturers, OEMs, Parts distributors, and LSPs to address these issues.

  1. Business Process Review
  2. Lean
  3. Benchmarking
  4. Event management and control tower
  5. Regional services, parts collection, consolidation and lineside delivery
  6. Message management, the rollout of forecasts to all suppliers
  7. Asset tracking