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Making Automotive Logistics Better: Key Considerations

The whole automotive industry was thunderstruck with the global financial crisis around a decade ago and ever since the industry continued to evolve in many respects. The role of logistics venture capital in shipping vehicles and fleet management solutions continued to become bigger. If you consider the challenges faced by the automotive logistics there are quite a few challenges you still need to affront.

In the automotive logistics industry, one major blow like that of the financial meltdown of 2008 can actually affect all connecting elements including the service providers, shipping lines and freight forwarders. The fall of car sales is the starting point that ultimately created a seismic nature of disruptions down the supply chain. Well, how equipped is your logistics business to overcome such a situation? Do you only rely on logistics venture capital to meet the financial shortcomings?

It has been proved time sad again that simply logistics venture capital and big money pumped to meet the financial shortfalls cannot actually provide a concluding solution to revive an industry undergoing growth challenges. The long-term solution to such crises rests on the improvement of the supply chain from the bottom up. A supply chain geared to meet the modern automotive logistics needs should be more agile, flexible and collaborative in spirit. Often meeting the changes with proactive steps at an equally faster pace is the key to find a so, union to these emerging growth-challenges faced by the slowdown.

For automotive logistics, one key consideration should be the integration of their services into the business processes of large automobile manufacturers. The big manufacturing brands in the automobile industry either themselves take the role of integrators or hire on board leading automotive logistics service providers as the integrators. Exceptional service quality that meets the industry standard and benchmarks set by the manufacturing companies are key aspects to remain in consideration as a leading logistics service provider.

In this respect, it is always important to keep an eye on the array of issues that plague the companies when trying to meet the evolving challenges for automotive logistics. Here we have shortlisted a few of these common issues that every automotive logistics service providers should take seriously.

- The supply chain remaining vulnerable to mistakes that in the long run can cost growth opportunities.

- Cost issues aggravated by fixed assets, large projects and not-optimised logistical solutions

- A bigger demand for more apt collaboration to ensure delivery of finished vehicles in sync with the market demands.

- Not remaining ready to meet the increasing demand for after-sales parts in the market.

- Not remaining ready with the detailed plan for inventory and deployment in sync with the customer demands.

- Not being equipped to meet the new challenges arising out of the globalised supply and highly specialised OEMs powered by globalised manufacturing units.

- The issues concerning the cost of packaging equipment and the control mechanism to keep this cost to a minimum.

- Not having fully optimised supply chain infrastructure for long distance vehicle transport.

Meeting the above-mentioned issues with their respective expertise and solutions remains the key challenge for the automotive logistics providers.