Like many industries, the automotive supply chain faces traditional expenses, such as transportation, inventory handling and storage costs. But today's demand for just-in-time (JIT) and just-in-sequence (JIS) deliveries add a layer of complexity and cost that are harder to see and even harder to control.
Identifying what's driving those costs can feel overwhelming. To gain visibility, eliminate the guesswork and optimize networks, automakers and manufacturers turn to third-party logistics (3PL) providers like Penske.
With decades of experience in automotive manufacturing logistics, Penske combines skilled associates, proven processes and advanced technology to help identify cost drivers - and manage them proactively.
Gain End-to-End Visibility Across Your Automotive Supply Chain
In automotive manufacturing, a single missed delivery window can ripple across an entire production line. That's why real-time visibility is the foundation of cost control.
Penske brings together the best supply chain software on the market with dozens of custom-built applications into our ClearChain® Technology Suite Technology Suite. This is where data is created, managed and executed - solving complex challenges that standard software can't handle alone. Our teams manage hundreds of daily part numbers, coordinating multiple Tier 1 and Tier 2 suppliers across a global network.
At the center of this capability is Supply Chain Insight, a powerful visibility solution that provides real-time oversight of your supply chain - from supplier dock to plant line. By bringing loads, orders and part-level data together into a single view, it's easier to see what's moving, which shipments are on track for JIS delivery and what needs attention before it disrupts the line.
Track every load, start to finish. Follow the complete journey of each shipment - every supplier pickup, every cross-dock, every plant delivery - so you can monitor progress, catch delays before they cause a line stoppage and understand the downstream impact on your production schedule.
Find answers fast. Search for any part number or order to pull up detailed information, performance metrics and historical trends in seconds. When a supplier issue or border delay threatens a JIT delivery, your team can diagnose the problem and respond in minutes, not hours - keeping the line running and avoiding costly downtime.
Penske also provides inbound support systems that manage production schedules, monitor carriers for border crossings and ensure on-time deliveries to the plant. Backed by in-house engineering resources, Penske helps automotive customers design optimal door sequencing, staging and setup processes - adapting to each facility's unique business rules, such as supplier operating hours or specialized handling requirements for sensitive components.
Proactively Respond to Delays Before They Become Costly
As inventory costs continue to rise, many manufacturers have scaled back on buffer stock. This reduces capital tied up in excess inventory - but increases the need for real-time visibility into the supply chain.
JIT and JIS deliveries both depend on reliable transportation. Penske experts continuously monitor shipments, flag delays as they happen and step in with crisis management when needed - before small issues become expensive disruptions.
In all aspects, we understand the time-critical just-in-time aspect of business and have the tools and technology to minimize costs.
— Andy Moses, senior vice president of solutions and sales strategy
Prepare for Surge Periods Without the Surge in Costs
When automotive manufacturers experience a spike in production, Penske draws on its resources to minimize cost and resource impact. During surge periods, Penske manages supplier scheduling, implements slip seating or brings in third-party providers to meet increased demand - without sacrificing efficiency.
Manage Phaseouts Strategically
Penske also partners with manufacturers to phase out models while optimizing the network and controlling inventory costs. The goal during a phaseout is precision: minimizing excess inventory while avoiding costly premium freight or expedited shipping. "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."
Take Control of Your Supply Chain Costs
Managing automotive supply chain costs isn't about eliminating complexity - it's about gaining the visibility and expertise to navigate it with confidence. From network optimization and delay management to surge planning and phaseouts, Penske brings the technology, people and decades of automotive experience needed to turn cost challenges into competitive advantages.
Ready to take control of your supply chain costs? Contact us to learn how technology and dedicated experts can help you identify hidden cost drivers and build a smarter, more resilient supply chain.
