Evolving Technology in the Automotive Space

1. In recent years, there has been a significant evolution in the automotive logistics sector. What does the future hold for it?

There are a number of trends that are shaping the future of the automotive logistics sector. From the perspective of an electric car company, what is particularly noteworthy is the increasing adaptation of the logistics service providers (LSPs) to the unique requirements of our vehicles. There are constant developments for charging infrastructure, maintenance and repair facilities, and transportation modes. Following the trend, the automotive logistics sector will be compelled to reduce its carbon footprint. We already see many car carriers investing in fleets with alternative fuels and adopting more sustainable practices; likewise, our partners in different terminals endeavour to produce green energy and adopt circular economy principles to reduce waste.

Moreover, the logistics industry will surely keep digitalizing; we can expect improved visibility and efficiency of operations, this sector may soon embrace new technologies such as the internet of things, artificial intelligence, and blockchain. In all, the future holds innovation and the adoption of practices to optimize car operations and make them more sustainable.

2. E-commerce has led to an increase in direct-to-consumer deliveries, which is changing the way that automotive logistics companies operate. What are companies doing to become more flexible and adaptable to meet the demands of consumers?

Companies are using data analytics to gain insights into current customer behaviour and expectations when purchasing vehicles online. To meet the diverse needs of customers, car companies are expanding their range of delivery options. Currently, there are partnerships being established between new players to enable the coordination of pick-up in logistics hubs, delivery at home, or delivery through regular dealerships. The challenge here is to analyse the data accurately to make more informed decisions about the supply chain and resource allocation.

“Companies are using data analytics to gain insights into current customer behaviour and expectations when purchasing vehicles online”

3. Any supply chain is always influenced by various external factors, including fluctuations in fuel costs, supplier/buyer relationships, consumer behavior, and partner ecosystem. What are some of the steps that organisations are taking to ensure smoother operations?

Organisations are more conscious of the importance of building strong partnerships with suppliers and logistics service providers. Communication between the partners can ensure that everyone is on the same page and that everyone knows what to expect. Potential issues are identified and addressed quickly before they become major problems. Good collaboration and transparency among partners can help organisations create a more resilient supply chain and ensure mutual support in times of crisis.

It is also essential to develop contingency plans to mitigate the impact of external factors, for example, having alternative transportation options in case of capacity crisis or fuel price fluctuation, or having backup suppliers in case of disruptions in the primary source.

4. Visibility in the automotive logistics sector is a complex issue, especially when it comes to global shipments. Is there any novel technology that you are optimistic about which can mitigate this challenge?

Telematics devices and IoT sensors are promising tools to address visibility challenges in the automotive logistics sector. When all real-time data can be centralized in a platform, logistics service providers and manufacturers can track and monitor not only the location but also other conditions of the vehicles in transit. If looking to improve traceability and make operations transparent, Blockchain technology could and will be an additional tool to look into.

5. What is your advice for other senior leaders and CXOs working in the automotive logistics sector?

The automotive logistics sector has faced crisis after crisis since early 2020, this situation has highlighted the importance of building resilient supply chains and creating contingency plans. Transparency and good collaboration among partners are the keys to keep efficiency, even in times of crisis. We are in a transformational phase, new technologies are there to optimize operations, reduce costs, and be efficient, therefore we should focus on embracing new technologies and sustainable practices.