Optimisation is no longer something that most businesses can afford to overlook. It comes with multiple benefits, from increased profit margins to lower environmentally destructive emissions. In complex industries with globalised supply chains, like the automotive industry, this becomes even more important.
Inefficiencies in a single link can become drastically magnified across the system as a whole, exacerbating what you might think would be small effects. Let’s explore how automotive businesses can optimise logistics processes, in order to become as efficient as possible.Â
Integrated approach to supply chain management
To have a good idea of how to optimise a process, you first need to know where the inefficiencies lie. In the automotive industry, this means having a centralised, integrated approach to supply chain management.Â
You need to ensure that dealers, suppliers, manufacturers, and other key stakeholders are in constant communication, so that anyone who might have a valuable insight can be heard. This also increases the probability that these processes will be both visible and fully coordinated.
JIT delivery
When done well, JIT (just in time) delivery can have a significant positive impact on the overall optimisation of the logistics process. It ensures that overstocking is kept to an absolute minimum, reducing the amount of storage space required while making it easier to manage the space that you do have. Again, this kind of approach requires a high degree of communication and reliability from multiple parties – it’s difficult, but absolutely worth the effort.
Efficient management of warehouses
Warehouses lie at the very heart of the logistics industry. As a result, it shouldn’t be a surprise to find out that it’s in warehouses that the most opportunities for optimisation can be found. Automotive industry players can benefit from integrating automated loading systems from providers such as Joloda Hydraroll, as these systems both speed up the loading process while minimising the need for human labour.Â
Route planning
The logistics process can also be optimised through the use of advanced route planning software.Â
Powered by artificial intelligence, these programs can take real-time traffic data and information on road closures, while predicting probable traffic build-up that might occur along the journey. As a result, journey time can be kept at a minimum, saving money on both fuel and driver costs.Â
Real-time tracking
By fitting all vehicles with telematics devices, and then making the data recorded through these devices widely available, the logistics process can be made far more transparent overall. Instead of guessing where a shipment might be, it’s possible to check at the click of a button, saving both time and effort for all parties involved.Â
While this has already come a long way, we can expect to see smart tagging systems integrated even more which allow for higher and higher degrees of precision in this area.
Optimisation isn’t something that’s fixed and fully achievable. It’s an ongoing process that requires keeping one eye on upcoming developments at all times, to ensure that nothing gets missed.Â
With the currently hyper-competitive economic climate, in most cases it’s simply not viable to overlook these opportunities.
