Production & logistics part 2: Questioning the future
By Christopher Ludwig2017-10-25T09:44:00
This article is one of a series of pieces celebrating Automotive Logistics’ 20th anniversary issue that together take an extended look at the way top executives feel automotive production and logistics have changed in the last two decades – and where they see them heading in the future.
What has changed the most in the past 20 years for automotive logistics?
Executives point mostly to increases in supply chain complexity and advances in visibility as the important developments – even if some also think visibility and technology haven’t changed enough.
At Mercedes-Benz, Alexander Koesling says part numbers and logistics flows have grown in the wake of rising model variety, new plant locations and markets. While the carmaker has focused on localising vehicles and components where feasible, global sourcing and material flows have risen. An experienced logistics executive at another European carmaker, who requests anonymity, makes the same point, highlighting new plants in China, South-East Asia and South America in the past 10-15 years. The same is true for other premiums like Audi, points out Michael Hauf, which started working on a new plant in Brazil in 1997 and has since expanded further in China, India and Mexico.
Global complexity has risen across the entire Volkswagen Group, according to Thomas Zernechel, which has acquired seven further brands in the past two decades, trebled its global production network to 120 plants and increased model variety from 100 to 300. With this rise in geographic and production diversity, the supply chain has also become more vulnerable to disruption, requiring more flexibility and crisis management…