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Supporting The Automotive Supply Chain

Complexity and dynamics characterise the logistical challenges for the automotive industry. Ever shortening production cycles and growing customer demands are transferring the face of the automotive supply chain. Logistics that optimise the entire process chain is the solution – from procurement and production to the distribution of components and complete vehicles through to spare parts supply. Rhenus has identified three key areas of the logistics function where significant process improvement could be made.

AUTOMOTIVE SECTOR AT RHENUS

As a multinational logistics provider, Rhenus can offer the varying divisions within the automotive sector not only the specialised freight services that we have become synonymous with, but also many value added services including external warehouse operational support, dedicated delivery networks, and full operational support from our specialised team, both here in the UK and also across Europe.

Ongoing investment in technological solutions such as real time tracking, electronic data exchange, and online booking portals have helped to bring Rhenus to the forefront of the automotive world.

MORE ABOUT RHENUS' AUTOMOTIVE SECTOR capabilities

  • Customer-specific process chain design
  • Proactive management of process and supply chains
  • International procurement
  • Inbound for suppliers of OEM and 1st tier
  • Exclusive customer fleet
  • Empties return
  • Area forwarding
  • Air / sea / intermodal
  • Grouping of goods streams for production supply - Europe and global
  • European consolidation at strategically located hubs
  • Planning and execution of milk runs
  • Extra tours
  • JIT and JIS delivery
  • Delivery synchronised to production
  • SCM tool
  • Enquiry of shipping status and on-route checks
  • Customs services

THE KEY CHALLENGES FACING THE AUTOMOTIVE SECTOR ARE:

1. Complexity of fulfilment requirements
2. Collaboration across the supply network
3. Visibility across the supply chain

DEALING WITH COMPLEXITY

The supply chain implications of advancing complexity are considerable. OEMs are placing new demands on their suppliers to provide the right parts at the precise moment they are needed on the production line. Tier 1 suppliers, in particular, are taking on increased responsibility for supplying value-added components, including many high-tech features, to the line.

Historically, automotive supply chains were made up of multiple tiers of suppliers scattered around the globe. Increasingly, however, Tier 1 suppliers are locating their operations close to the point of production, in supplier parks clustered around assembly plants. Increasingly, even Tier 2 and 3 suppliers – typically makers of smaller components – are involved in these clusters. At the same time, other suppliers – particularly electronics component makers and those with well-established regional operations continue to be based far away from the assembly plant. Whatever the reality, the task of coordinating a noticeably complex supply chain is becoming more difficult to manage in-house.

That is why many more OEMs have outsourced their logistics to third party providers such as Rhenus, which operates tried and tested parts collection and reverse logistics flows for vehicle manufacturers across the EU. Rhenus is increasingly dealing with requests from suppliers to outsource not just the delivery of parts to lineside, but also to bring added value. This can include pre-shipment quality checks or the sequencing of parts into specific configurations prior to transport.

WITH DEMAND FOR NEW CARS CONTINUING TO GROW ACROSS EUROPE, VEHICLE MANUFACTURERS ARE FOCUSED ON CUTTING COSTS, WHILE BUILDING INCREASINGLY COMPLEX VEHICLES. BETTER VISIBILITY AND COLLABORATION BETWEEN ORIGINAL EQUIPMENT MANUFAFCTURERS (OEM) AND PARTS SUPPLIERS IS VITAL TO THE LONG-TERM SUCCESS OF THE INDUSTRY //
Darren Cater, head of automotive competence centre in the UK.

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Rhenus Logistics Limited
Liverpool Road, Eccles
Manchester. M30 7RF 
Great Britain
E-mail: contact-uk@uk.rhenus.com 

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