Learn What's Driving Your Supply Chain Costs

Use data to identify, analyze and better manage your supply chain spend

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Like many industries, the automotive supply chain faces traditional expenses, such as transportation, inventory handling and inventory storage costs. Additionally, it faces layers of cost complexity due to today's demand for just-in-time and just-in-sequence deliveries.

Trying to identify the factors driving your costs can seem daunting. To provide visibility, remove the headaches, and help automakers and manufacturers optimize their network, manufacturers turn to third-party logistics providers, like Penske.

With decades of experience in the automotive manufacturing industry, Penske Logistics has the people, processes and technology to help you better identify and manage costs.

Optimize Your Supply Chain Network

The ClearChain® technology suite — Penske's proprietary technology designed to streamline the movement of goods — allows manufacturers, supply chain partners and suppliers to track inventory, ensure deliveries move as scheduled, and optimize the network. This helps to reduce supply-chain-associated costs and to ensure accurate just-in-time and just-in-sequence shipments.

Penske also offers inbound support systems that manage production schedules, monitor suppliers, trucking carriers for border crossings and ensure on-time deliveries. With its engineering resources, Penske can help automotive customers identify and implement optimal door sequencing, setting and staging processes.

ClearChain also can help automotive manufacturers manage unique rules associated with their facility, like capturing all of the business rules a customer has pertaining to things such as supplier hours of operations or specific handling requirements.

Proactively React to Delays

Since inventory is expensive, many manufacturers no longer carry the buffer of extra inventory. This reduces capital tied up in inventory, but also increases the need for visibility. Just-in-sequence inventory deliveries add cost but also deliver value.

Just-in-time and just-in-sequence deliveries both rely on dependable transportation. Through ClearChain, Penske's logistics experts monitor deliveries, flag those that experience a delay, and provide crisis management if necessary.

"In all aspects, we understand the time-critical just-in-time aspect of business and have the tools and technology to help minimize costs."
Andy Moses, senior vice president of sales and solutions, Penske Logistics

Prepare for Surge Periods

When automotive manufacturers experience a spike in production, Penske Logistics uses its resources to minimize the cost and resource impact. During surge periods, Penske can manage supplier scheduling and use slip seating or add third-party providers to meet customers' needs.

Properly Manage Phaseouts

Penske can also work with manufacturers to phase out a model, optimizing the network and managing inventory costs. As part of a phaseout, Penske uses its logistics expertise to balance necessary supply and avoid premium freight spend with the risk parts obsolescence. "With a phaseout, the goal is to have zero inventory of your old model left at the end of the day," Moses said. "But you don't want to run too lean or you're flying parts in."

Andy Moses
Andy Moses is senior vice president of sales and solutions for Penske Logistics. Prior to this role, he was vice president of sales at Penske Truck Leasing. Moses has more than 25 years of experience in the transportation industry, serving in product and sales leadership positions with both Penske Truck Leasing and Rollins Truck Leasing. A Six Sigma Master Black Belt, Moses earned a bachelor's degree in accounting from Brooklyn College and a master's degree from Pennsylvania State University in leadership development.

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