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Automotive Logistics for Production Report
SupplierBusiness, June 2009, Pages: 233
Logistics is one area which, in these difficult times, offers automotive businesses genuine opportunities to make significant cost reductions and efficiency gains while maintaining service levels. And because logistics is central to business operations in the automotive sector, the benefits can be considerable.
For example, Frederiek Toney, an Executive Director for Logistics at Ford says that he expects to lose $1bn of cost over the next five years by improving their logistics operation. And Ludo Vandervelden, a Vice President for Finance and Accounting at Toyota reports that a recently-developed component in their supply chain management system optimises vehicle availability, reduces on-hand inventory and increases customer satisfaction.
The leading concept which is driving this opportunity is Lean Logistics – removing waste. And as this report shows, there are a variety of ways of reaching this goal: greater cooperation; improved packaging; adopting ‘green' practices; enhancing supply chain visibility and so on.
In-bound logistics has been at the heart of the transformation of the automotive industry of the last decade and its significance is likely, if anything, to increase over the next several years. High quality logistics, excellent management and the use of appropriate technology has been critical to the geographical extension of the automotive supply chain into emerging manufacturing countries.
Further optimization of the supply chain and the adoption of Lean Logistics principles to reduce waste offers huge potential for cost saving. And the lessons of best practice on an international scale will drive the development of the future structure and location of the global international supply base.
This report is the first to be published taking into account the impact of the global financial crisis and the heightened economic volatility on the foot print of the international automotive industry and the vulnerability of its supply chain. And it is based on extensive work and travel, so that we have been able to collect the true voice of the industry. And this is reflected in the many direct quotations from key players found throughout this report.
The report also contains 100 pages of company profiles on all the major players in the Automotive Logistics field
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