Emergency logistics expertise vital to maintaining supply chain solidity for growing automotive industry
Intensifying production schedules are highlighting the potentially hazardous knock-on effects for the automotive supply chain, warns emergency logistics specialist Evolution Time Critical. One major European OEM in particular recently announced an increase to 24-hour production, which puts heightened pressure on Tier 1 and 2 suppliers to meet demand and can be exacerbated by unexpected factors that can jeopardise existing contingency plans.
“Logistics managers operate with a degree of in-built contingency, but the amount of leeway is becoming much tighter as production runs increase, deliveries are required more frequently and when the unexpected occurs to jeopardise continued service,” says Evolution Time Critical managing director, Brad Brennan. “The margin for error becomes tighter and the cost of failure to meet demand increases, which means overall supply chain efficiency is crucial: unpredictable variables such as freak weather or sudden strike action can place added pressure on suppliers already nearing peak capacity due to increased manufacturer demand.
“As ongoing supply has the potential to become more fraught, emergency logistics is required to not only facilitate last-minute deliveries to avoid a breakdown of the supply chain, but identify and analyse less robust working practices to help avoid reoccurrence of similar issues,” continues Brennan.
Increasing demand from vehicle manufacturers tests Tier 1 and 2 supplier lead times and physical capacity limitations, placing an added strain on the supply chain and helping highlight any potentially fractious links. To manage short-term supply while companies increase tooling capability and work to replenish buffer stocks, the availability of a reliable, robust emergency delivery system is indispensible. These levels of expertise are vital in ensuring fluid delivery throughout the supply chain and avoiding costly production stoppages just at a time when manufacturers are seeking to optimise outputs.