Emergency logistics is critical, feel experts

Vehicle manufacturers or OEMs all over the world are increasingly adopting the lean model. In short what it means is that almost everything is outsourced and put together on the assembly line. The only factor of critical importance is that the parts outsourced need to reach the manufacturing plant on time, every time. And with plants running two to three shifts on a single day basis, the availability of components assumes great significance.

Delegates at a recent major automotive conference held in Bonn, Germany, unanimously agreed that increasing to 24-hour vehicle production heightened operational risks. Furthermore, a quarter believed that line stoppages would be an inevitable result of intensified schedules. Emergency logistics is able to reduce the frequency and severity of the potential impact of these risks by easing the transition period and enabling a sustainable production schedule, says emergency logistics specialist Evolution Time Critical.

Evolution Time Critical is the world’s leading specialist in emergency logistics for the automotive industry. Every day, its global 24/7 emergency operations centres meet the tightest of delivery schedules for customers in the UK, Europe, USA, China, India and across the world.

According to a press statement “Unplanned production line stoppages can cost vehicle manufacturers over £1m (Rs 10 crore approx.) an hour, which underlines the financial penalty of not having the means for a robust transition in place,” explains Evolution Time Critical managing director, Brad Brennan.

“Perhaps one of the most revealing findings was that three-quarters of delegates believed that the risk of ramping up production schedules could be successfully managed, where premium freight can play a large part in the provision of contingency. A 24-hour production removes the supply chain safety buffer provided by assembly downtime, during which maintenance work can be carried out or reserve stocks replenished, but acceptance of the challenges that lie ahead and awareness of the risks involved affords the opportunity to successfully mitigate these issues,” he added.

A number of vehicle manufacturers have recently moved, or have announced plans to move, to a three-shift pattern to meet the increasing demand from a resurgent automotive industry. This heightens the pressure on Tier 1 and 2 suppliers and puts increased strain on the supply chain as it adapts to new schedules. As this industry trend grows, it is crucial that suppliers and OEMs be prepared for fluctuating demand and deviation from previous forecasts.  

“It is essential that appropriate solutions are in place to ensure that production schedules are not put at risk. Effective contingency planning and work with emergency logistics specialists such as Evolution Time Critical can help deliver such measures,” says Brennan, adding, “A reliable emergency delivery system is vital to support a supply chain under increasing pressure, to avoid possible delays, and can help vehicle manufacturers work towards optimising production during and post-transition by providing the reassurance of a just-in-time safety net.”