The auto-components supply chain for manufacturing trucks, cars, tractors, off-the-road vehicles etc. is one of the most complex in the world and involves lots of factors that makes the entire supply chain challenging to manage. With globalization, it is more economical to manufacture vehicles but it is more complex to manage the supply chain involved in the process of manufacturing.
Why is the Supply Chain for Auto Components Complex?
- Sourcing of components, sub-assemblies from multiple sources and geographies
- Making orders to keep inventory level minimum – Just In Time (JIT) and lean manufacturing
- Managing buffer inventory to meet fluctuating demand
- Unexpected /unforeseen changes in the technology for manufacturing
- Seasonal or varying demand
- SKD / CKD assemblies
- Variety of products and thus large SKUs to meet spare parts demand for products
- Regulations for export-import
- Demand forecasting
Logistics outsourcing in the automotive industry has been conventionally (until quite recently) limited to engaging with stand-alone transportation and warehousing service providers for the outbound and inbound movement of their products and materials. The gradual increase in emphasis on improved operational efficiency, just-in-time inventory practices and long-term supply contracting systems have slowly transformed the working of logistics and supply chain management and their outsourcing practices. A whole range of new value-added services – such as packaging, labeling, systems support and inventory management etc are now on offer by several large integrated 3PLs.
We at Ultimate Marine have immense experience in providing integrated Logistics Solutions to our Auto Components customers. If you are an Auto Components or Automotive firm, we are waiting to make your business easier. Contact our Auto Components Expert today and let’s get down to business.