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1.The automotive logistics market is growing rapidly due to the increasing number of strategic partnerships between automotive manufactures and logistic companies.
2.Automotive industry players are continuously partnering with logistics players to transport their components and finished vehicles from one location to another.
3.The strategic partnerships are helpful for the automotive manufactures to facilitate better control in managing inbound and outbound services, short lead times and timely deliveries.
4.The automotive industry relies heavily on the outsourcing of logistics services and these services aid in the acquisition of new information plus expansion of process flexibility.
Over the last several years, The 3PL Industries have steadily given specialized services and information technology solutions to the manufacturing sectors that are outside of the primary focus of the business.
The outsourcing of automotive logistics parts for consolidation has shown to be a worthwhile investment. The automotive industry is pickuping slowly due to the pandemics outbreak and governments across the globe lift the various containment measures steadily to revive the economy.
The automotive logistics provide seamlessly ware housing services and transportation of spare parts plus production materials and finished vehicles to ensure smooth flow of operations.
Automotive industry players are also making a strategic utilization of technologies such as big data and connected ships to optimize the supply chain management process. These technologies are helpful to reduce the labor costs by making predictive assessments on routing plus eliminating delays in shipments.
Global automotive industry is predicted to witness growth in the future owing to improved standards of living, coupled with rising spending capacity across the globe. The need for spare parts for the massive on the road existing automobile fleet in the aftermarket is expected to drive the market over the forecast period.
The automobile manufacturers were raising the cost of inventory owing to storage of automotive components and systems for long term automobile production. To overcome this challenge, The automobile manufactures had to adopt the strategic productions like just in time and world class quality.
Electric vehicles are expected to grow in a big way and could disrupt the traditional automotive supply chain globally. OEMS, Component suppliers and raw material providers are expected to witness a shift in the balance of power, which has evolved in over 100 years of dominance of internal combustion engines.
While there will certainly be challenges for the incumbents. It is expected that an equal measure of new opportunities will also be created. The raw material suppliers make up 10%-15% of the total value addition in a new car with component suppliers processing the bulk of raw materials to produce components which constitute around 50%-55% of the cost.
The OEM assembly plants constitute a further 30%-35% of the value added in a new car. This status quo is about to transform with the advent of electric vehicles.
Current Value Addition: Raw Material Suppliers (10%-15%),Component Suppliers (50%-55%),OEM(30%-35%)
EV Value Addition: Raw Material Suppliers (15%-20%),Component Suppliers (35%-40%),OEM (40%-45%)
Blockchains are securable databases by design, making them excellent prospects for recording things like medical records, financial transactions, identity management and proving provenance. Blockchain offers the potential of removing the middleman in trade and transaction processing.
Here are five ways blockchain has become a disruptor and driver of adoption in the automotive industry.
The automotive industry growth has fallen due to the pandemic outbreak. Even after businesses are reopened, social distance should be continued. So automotive industries have to come up with new ways to boost up the businesses.
The current priority is to enable a remote workforce where possible. So that it will reduce operational costs and investment in digital technologies that keep customers engaged and provide financial relief.
The automotive sector has to continue up their findings on connected, autonomous, shared and electronic innovations to compete with their competitors plus increase focus on cyber security as remote work places.
The key players in Global automotive logistics market are CEVA logistics AG,DB Schenker, DHL International GMBH,DSV A/S. These companies are providing technology driven services such as real time tracking of shipments and route optimization. The key players were collaborating and engaging in merger and acquisitions of other automotive logistics companies to capture a greater market share. The key automotive industrialists are focusing on improving the automation technology to attain competitive edge among end users.
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