Still growing, with Europe forecast to grow by 6 percent and North America by 5 percent, automotive logistics offers growth prospects but only for those logistics service providers who can exploit change. This is one of the main conclusions of the latest report from Transport Intelligence, "Global Automotive Logistics 2014".
A mere four years after overtaking the U.S. as the world's largest car market, China's automotive industry has arrived at an important inflection point. The days of growth rates above 20 percent are over, and rates may dip as low as 6 percent by the end of the decade. Several factors are driving this shift.
Vascor Ltd., a global provider of automotive logistics services, has acquired Commonwealth Express, Ltd., a U.S.-based specialist in asset-based transportation and brokerage.
Challenge: A global Fortune 500 heavy machinery manufacturer experienced challenges on inbound freight moves from their vendors. Carriers were experiencing 4-6 hour wait times upon arriving at the customer’s assembly plants to deliver mission-critical parts. In addition to incurring demurrage (waiting) charges from the carriers and overtime pay costs to unload the backlog of deliveries, their carriers were reluctant to deliver to these plants and offered non-favorable rates.
Challenge: The sourcing team within a global marine engineering firm was challenged with standardizing its temporary personnel procurement process, specifically for crew staff for its fleet of 100 maritime vessels. As the team collected global requirements, it became clear that a number of factors would add complexity throughout the process, as there were 34 different staffing vendors with multiple compensation frameworks fulfilling the 46 crew positions utilized in 9 geographical regions.
Challenge: Kenco was operating 300,000 square feet in a 478,000 square-foot warehouse to service an industrial manufacturing client. The customer challenged Kenco to engineer a solution that consolidated product from another 350,000 square-foot distribution center into that space. This meant squeezing 650,000 square feet into a 478,000 square-foot space.
Challenge: A global manufacturer of construction equipment needed to reduce inventory holding costs and improve response times for spare part deliveries to customers.
Challenge: A leading manufacturer of home improvement and building products was operating across dozens of brands, in multiple of retailers across the globe. Their logistics network was being operated at an independent level per brand, leaving multiple opportunities for overlap and inefficiency. However, with such a level of complexity, they knew streamlining their network would be a challenge.
The challenges of omnichannel distribution are perhaps the largest issues facing retailers today. Two senior consultants from Kurt Salmon identify solutions that can help retailers deal with omnichannel demands today and stay ahead of future changes.
Big Heart Pet Brands is the parent company for many of the biggest selling pet foods, including Kibbles 'n Bits, Meow Mix, Milk Bone and 9Lives. Ryan Dimond, manager of supply chain optimization, discusses how Big Heart uses supply chain design to support its many brands and employs supply chain modeling to make better decisions.
The latest supply-chain news, analysis, trends and tools for executives in the automotive industry — which consists of companies that produce automobiles, utility vehicles, motorcycles, all-terrain vehicles and heavy trucks. Learn how automotive companies and their suppliers around the world are managing the flow of products across all channels of the enterprise. Experts sound off on forecasting and demand planning, supply-chain visibility, logistics outsourcing, inventory optimization, transportation management, warehouse management, supply-chain security, corporate social responsibility and more.
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