automotive

Reading, Pa., July 29, 2022 – Penske Logistics was named Partner of the Year by Nissan North America. Penske was honored in the Part Logistics U.S. Market category at Nissan’s recent Annual Supplier Conference. The company was recognized for its lead logistics inbound parts flow operations that support Nissan car manufacturing operations in Smyrna, Tennessee, Canton, Mississippi, and Decherd, Tennessee.

“We appreciate that our hardworking associates were recognized by Nissan North America for their assistance to the customer during a unique time in our world’s history,” stated Marc Althen, Penske Logistics president.

Penske Logistics is a Penske Transportation Solutions company with operations in North America, South America, Europe and Asia. Penske Logistics provides supply chain management and logistics services to leading companies around the world. Penske Logistics delivers value through its design, planning and execution in transportation, warehousing and freight management. To learn more visit: www.penskelogistics.com.

This U.S.-based worldwide Tier 1 supplier of major automotive components was looking to minimize supply chain disruptions, increase visibility and improve cross-border operations. With 52 plants and 3,000 suppliers, the Tier 1 supplier needed a lead logistics provider that could manage inbound freight and support production.

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Aluminum manufacturer Novelis faced an intriguing business challenge: how do you provide a continuous supply of aluminum to support production of a highly-anticipated pickup truck at plants located hundreds of miles away — all while ensuring safety and sustainability, optimizing capital investment, and providing efficiency, flexibility and visibility into shipments?

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In today's global economy, businesses use cost sharing to reduce expenses and maintain a strategic edge. However, cost sharing brings added complexities, and industry leaders can't afford to sacrifice quality or performance from their logistics, transportation and warehouse providers. And while automotive manufacturers may be wary, they can see that the “sharing economy” may have benefits for them.

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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.

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The fast-paced automotive manufacturing process demands that every moving part within a production facility must come together at the right time and place to maximize output. Additional work on the front end helps that manufacturing process run smoother.

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With so many new parts entering the automotive space each year, the number of stock keeping units (SKU) continues to compound. By properly placing and managing SKUs within the walls of a warehouse, manufacturers and suppliers can maximize the number of picks an associate can accommodate, increase agility within the supply chain and decrease inventory cost.

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Receiving shipments on time isn't enough these days. Instead, automotive manufacturers' shipments must also arrive in the order they are needed. To do so, a manufacturers' just-in-sequence supply chain must be optimized.

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Every automotive manufacturer’s budget includes a line item for transportation. But that doesn’t mean transportation is a commodity. The short-term financial gain of choosing the lowest-cost carrier can quickly snowball into a long-term loss if that carrier’s lack of reliability shuts down an assembly line.

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With just-in-time and just-in-sequence deliveries ruling the automotive landscape, manufacturers can’t afford any missteps. Data holds the tremendous power to help supply chain partners mitigate potential problems before they occur.

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Maximizing efficiency is often at the forefront of every automotive supply chain decision. It's critical to get the right quantity of the right part, delivered to the right location at the absolute right time. Failing to ensure proper part delivery could bring your operations to a grinding halt and have a catastrophic effect across the entire supply chain. Fortunately, technology is advancing at an exceptional pace giving users unprecedented access to timely data.

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Businesses in today's rapidly transforming automotive industry use numerous technologies to collect data. But when those technologies don't communicate, all that data becomes useless.

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Companies strive to get more products on a trailer and reusable containers offer that capability. They create significant cost savings when compared to throwaway packaging, and they eliminate variances in packaging. That, in turn, standardizes pack sizes, drives consistency and increases efficiency.

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Data-driven decision making rules the automotive industry. Data streams in from multiple sources. And while all that data is powerful, if it can’t be quickly organized and utilized, it’s just noise.

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A blizzard closes a major interstate. A bridge collapse creates months of rerouting. A labor dispute closes a port. Disruptions like these create major challenges for the supply chain – especially in the automotive industry, where precision delivery windows are critical. Preparing for the unexpected can help keep your production line moving, no matter what.

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When a production line goes down, every minute counts. Workers stand idle, millions of dollars can be lost and the ripple effect is felt throughout the entire manufacturing facility. That's why, in the automotive industry, it's imperative to get the right quantity of the right part in the right place at the right time.

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Successful border crossings require expertise, visibility and seamless communication. Due to government regulations, they also require additional, specific documentation and careful planning for carriers and shippers alike.

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When the production line stops in the automotive industry, losses add up minute by minute. This is why industry-leading auto manufacturers must remain ever vigilant in minimizing supply chain disruptions.

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