Applied Nano Surfaces is affiliated with Precision Finishing, Inc

It was a difficult time for car makers. Pandemics have intensified supply chain challenges and created new disruptions to the logistics of finished vehicles. Under normal circumstances, managing different modes of transportation, carriers, and contract terms while balancing production processes, emission certification, damage handling, quality control, hold control, and cost control is complex. Transport Intelligence quoted the pandemic-related impact of automotive logistics shrinking by 20.4% in 2020.

Technavio, a global technology research and advisory firm that oversees the logistics market for finished vehicles, predicts a CAGR of over 5% to $ 113.17 by 2024, compared to $ 87.00 in 2019. I am. Digitization and advanced technologies such as artificial intelligence (AI), machine learning, and optimization software with proprietary algorithms play a major role. Understanding current market dynamics and how optimization software can help automakers drive progress across finished vehicle logistics helps original equipment manufacturers (OEMs) stay competitive. Is important for.

Market overview

Prior to the pandemic, the global automotive logistics market was tested by external factors ranging from the US-China trade war and Brexit to economic uncertainty and inadequate intermodal terminal capacity. Automotive OEMs are under pressure due to reduced network capacity, reduced load capacity due to larger and heavier vehicles, and a shortage of drivers. Balancing these pressures, along with sustainability goals to reduce CO2 emissions, is an ongoing challenge.

Vehicle registration is increasing in developing countries. Finished vehicle logistics is backed by a wide range of third-party logistics companies (3PL) offerings, introducing new supply chain enhancements such as integrated warehousing and transportation solutions. Intermodal freight transportation is growing and is supporting the growth of the finished vehicle logistics market. In today’s harsh market environment, manufacturers are actively seeking solutions to improve their operations, benefiting from the increased supply chain visibility and real-time decision support provided by intelligent optimization software. doing.

Optimization software to improve the logistics of the finished vehicle

Yard / compound management

Advanced optimization software It targets key processes in finished vehicle logistics, including yard management, transportation management, network planning, vehicle processing center (VPC) scheduling, and workforce optimization, and contributes to sustainability. Yard management solutions optimize vehicle yard operations and benefit OEMs, ports, terminal operators, and other service providers. It provides real-time end-to-end monitoring, planning, and optimization of vehicle logistics processes. This solution facilitates optimal allocation of parking space in the yard, staff work allocation, workshop operations, and outbound vehicle loading on both trucks and railroads. You can direct workers to move their vehicles in the optimal order and workflow, saving time, costs, and emissions by reducing travel and distance while maximizing the efficiency of your task at hand. .. OEMs can reduce the potential for damage and increase customer service and satisfaction by increasing competitive lead times and reducing movement.

Transport management

It is important that the vehicle arrives in the right place on time. Given the multimodal transport associated with the logistics of finished vehicles, it is important that all vehicles are properly considered in load and transport route decisions. Intelligent transportation management solutions take these and other factors into account, such as fleet and driver management, and use full transparency and process support to optimize process and route configuration. It calculates and provides a load configuration for each transport vehicle, real-time visibility of vehicles in the distribution network, and an optimized dispatch plan that conveys individual loads, transport modes, and distances. These solutions track the efficiency of empty miles and trucks while optimizing communication through an online platform with standard electronic interfaces accessible to all partners in the supply chain. Transport management solutions can also address specific restrictions imposed by different regions and contract terms, while also supporting relationships with secondary or overflow carriers. Automakers can save money by choosing transportation routes, service providers, and network locations with real-time data and vehicle visibility, optimal resource allocation, and enhanced KPI metrics and related reports. ..

Network planning

Efficient finished vehicle logistics relies on an optimized network that can function under a myriad of real-world conditions. Optimization software It helps automakers deal with “what if” scenarios that can occur at any point in the delivery of a vehicle. Carrier-related factors such as means of transportation, time of travel, emissions and carbon dioxide emissions, contract terms, and on-time performance and potential damage should be considered along the delivery cycle. Sustainability is becoming an increasingly important consideration in finished vehicle logistics. Mathematical optimization algorithms based on operations research are applied to address various scenarios through complex simulations and support them in digital decision making. All optimized decisions about which transport volume, which route, and which port should be implemented are considered and supported. By applying a strategic planning solution, you can create simulations to achieve the most feasible networks and goals at the same time or vice versa, how you can adjust lead times without increasing emissions, and the most cost-effective. Models or combinations of them can be determined. A performance-driven model with the second closest cost. These improved decision-making simulations lead to shorter transport lead times, lower costs, and significant reductions in carbon emissions. If all partners in the process have access to network planning tools, the resulting insights, communications, and collaboration are even more important for cost efficiency, resilience, and sustainability across the finished vehicle’s logistics supply chain. Will be.

Fully automated and visible supply chain for optimizing the logistics of finished vehicles

In addition to yard management, transportation management, and network planning, optimization software also enhances inventory management, workshop management, real-time damage reporting and visibility, and electronic delivery certification (ePOD). This allows automotive OEMs to intercept deviations before escalating to problems, as they can respond immediately to deviations. There are measurable improvements in productivity, quality control, control, and customer satisfaction. OEMs that already have optimized and real-time visibility solutions have become more aggressive and have significantly improved their ability to withstand unexpected confusion and bottlenecks. Applied Nano Surfaces is affiliated with Precision Finishing, Inc

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