Logistics in the automotive industry, why is it so important?
The automotive sector is one of the most competitive branches that can exist in the Mexican market and this is because it is an extremely dynamic industry.
Some of the factors of this dynamism are the constant research in design, monitoring of trends and innovations of the product but above all the investment of having the capacity to renew year after year.
This is where the logistics of the automotive sectorcomes in, and everything that involves its process from the assortment of the raw material to the delivery of the finished product.
Why is logistics so important in the automotive industry?
the automotive industry has very specific characteristics and particularities, with peculiar logistical requirements that to be solved requires a specialist.
“If there is a small delay in the logistics part, even for 5 minutes, this delay will have a direct impact on the entire production chain,” says Miguel Toraya, CEO of Amerisa Logistics.
What happens if the entire production chain is delayed? Problems arise in each of the stalls, which ends up negatively impacting the production of the finished vehicles.
Logistics experts determined 3 vital factors in the automotive sector
A perfectly adjusted and parameterized production line.
A commercial positioning of the brand.
Master the supply chain, including distribution.
The first two factors are completely inherent to the automotive company andthe third point can be outsourced; being very important the fact of properly choosing an experienced logistics operator, since much of the success of the brand will depend on him.
How to choose a logistics operator in the automotive industry?
There are 4 points that you must take into account before hiring a logistics service (whether from the automotive industry or not):
Expertise and life time in the market
Technology and infrastructure used
When choosing your logistics operator, the first thing you should do is review how many years you have been participating in the industry, it is advisable that it takes a period of no less than 5 years since the expertise of a company begins to be reflected from this number.
Another point that you should investigate is what type of processes it uses as a basis, one of the most effective is the JIT philosophy (Just In Time or Just in time) which uses only flexible resources, minimizes delivery times and stretches the logistics flow to offer competitive advantages to its customers.
This competitive advantage is above all the fact that the customer does not worry about the arrival on time of the inputs for the assembly of the cars.
Something that must be taken into account before hiring a logistics provider in the automotive industry is to determine that it also provides storage service, since in this way the production chain is optimized, thus avoiding economic loss and clearly obtaining a more dynamic flow.
And finally you must always ask about the type of technology that the logistics operator uses since only then can you determine how the company overcomes its challenges and challenges and how it amends its mistakes (because no one is safe from committing any).
A logistics company that relies on the correct technology and is in constant innovation will be an organized logistics operator and just in its times. You can even ask them what kind of tools they use, they could be WMSs or ERP.
If the logistics operator is 100% sure of the technology and infrastructure that supports their operations, they will not hesitate at any time to provide you with all their information.
So now you know, the logistics within the automotive industrymay sound complex, but if the company has these 4 points presented above, then you can be sure that the interval and delivery times will be narrow and safe.