Westerville, Ohio (PRWEB) July 10, 2013
A new white paper commissioned by Exel and its sister company DHL Supply Chain makes the case for re-evaluating the automotive industrys approach to its supply chains and logistics, and encourages companies to ask themselves, What if? to avert a crisis tomorrow.
Lean and resilient: the new automotive supply chain hybrid is a report by Lisa Harrington, President of the lharrington group LLC, prepared in collaboration with Exel. The white paper outlines how todays supply chains must be ever more resilient and agile in order to survive the butterfly effect where a small change at a localized point in the supply chain can result in much wider consequences for the business, such as loss of customers or brand reputation, and billions of dollars off their bottom line.
Based on expert interviews and analysis of past automotive supply chain incidents, the white paper reveals how companies risk critical damage to their business if they are not in a position to anticipate and respond to the increasing unpredictability and vulnerability of their supply chains in light of economic volatility, natural disasters and political unrest.
The white paper maps the evolution of the automotive industry and sets out the benefits of re-evaluating and revising its logistics operations by establishing new hybrid supply chains that are simultaneously lean and resilient. This new model adds in controlled redundancy and contingency options to improve resiliency and protect against failure.
The research highlights the commercial imperative of supply chain resilience, says Vince Peters, Vice President, Exel Supply Chain, Automotive Sector. For the industry to survive and continue to develop into leaner and more resilient supply chains, global collaborative simulations must be developed and tested prior to establishing the correct process and approach."
Four major trends re-shaping the automotive sector and the risks associated with each are identified in the report:
1.????Global Growth and Emerging Markets: Despite the drag-effect of the debt crisis in Europe, global automotive production is forecast to hit record levels, driven by emerging markets China and India.
2.????Mega-plants and Multiple Platforms: Companies are shifting to producing multiple models or platforms in a single plant to gain flexibility, reduce costs and better utilize production assets. These improve capacity while reducing the need for plant expansion with strongest growth in China and Mexico.
3.????Getting Closer to the Customer: OEMs are locating their new manufacturing plants and supplier base closer to their end markets and moving to a model of geographically regionalized production manufacturing at or near the point of demand.
4.????Relentless Cost Pressure: Logistics typically represent five to 10 percent of manufacturing revenues in the automotive industry. A need for speed to meet the growing affluent consumer markets, while having to drive down costs puts huge pressure on supply chains.
Download and view the full report here. For more about supply chain best practices, solutions and success stories, visit the Exel automotive pages: http://www.exel.com/automotive
For more information and interview requests, please contact:
Nicole Porter????????????????
Exel????????????????????
614-865-8437????????????????
nicole.porter(at)exel(dot)com
or
Gretchen Torres
Fahlgren Mortine
614-383-1629
gretchen.torres(at)fahlgren(dot)com
About Exel
Exel is the North American leader in contract logistics, providing customer-focused solutions to a wide range of industries including automotive, consumer, retail, engineering and manufacturing, life sciences and healthcare, technology, energy and chemicals. Exels innovative supply chain solutions, skilled people and regional coverage bring together all aspects of contract logistics in addition to a wide range of integrated, value-added and specialist services. Exel is a wholly owned entity of Deutsche Post DHL, the worlds leading logistics group. For more information, visit http://www.exel.com.