Automotive Logistics Trends for 2023

Tony Trocki, Vice President Transportation, Evans Distribution Systems

A utomotive logistics involves the management of the movement of vehicles and parts within the supply chain. Vehicle parts are manufactured all over the world and require efficient management of those parts across long distances.

With new technologies, shortages, and disruptions brings new demands on automotive logistics. Every challenge is an opportunity to find new operational solutions to meet customer needs. Here are a few automotive logistics trends for 2023.

Automation

Automation is becoming increasingly important to the automotive industry. By its nature, auto manufacturing requires speed and accuracy. Every part is assigned to a certain car according to the measurements of the make and model through a bar code. The most efficient way to optimize the manufacturing process and reduce errors is through automation. Therefore, supply chains must also automate using artificial intelligence, machine learning, robotics, and analytics to optimize operations.

One of our automotive customers required a transportation solution that integrated with automation on the assembly line. Evans customized five trailers with an automated racking system dedicated to this project. The computer from the trailer when connected to the dock activates AGVs (automatic guided vehicles) to load and unload the trailer.

Shifts Associated with Electric Batteries

As automotive manufacturers shift toward electric vehicle models, a new set of warehousing and transportation requirements emerge. Batteries must be stored properly and handled carefully during transport to prevent a dangerous reaction. Evans Distribution Systems has developed in-depth expertise in temperature requirements and handling equipment needed to prevent battery damage while in being stored, repacked, and shipped.

“As the automotive industry experiences challenges, a flexible supply chain is required. This year, the industry will continue to face a chip shortage and labor issues— both of which affect vehicle production”

Just-in-Time

With hundreds of pieces and parts that go into building a car, many automotive plants are not equipped with storage capacity. This requires a just-in-time manufacturing model where parts are received at the moment that they are needed on the line. Logistics partners need to be prepared to transport the parts quickly and efficiently to ensure production is not delayed. This requires intensive communication, scheduling, and accuracy to get parts loaded and transported effectively.

Digitalization

As with many industries, the automotive logistics industry is going almost completely digital. Not only the cars themselves areare the cars themselves going digital but supply chains as well. Many data-driven technologies such as Internet of Things (IoT) and algorithms help to manage production and adjust where needed. In 2023, connectivity of digital technologies and system integrations will be imperative to success.

Sustainability

Climate change and sustainability are becoming more important to our world economy. Automotive companies have a huge impact on reducing waste and emissions. In 2023, logistics partners must adopt sustainable practices as a top priority, whether it beis robust recycling programs, ecofriendly materials, or electric powered trucks.

Flexibility

As the automotive industry experiences challenges, a flexible supply chain is required. This year, the industry will continue to face a chip shortage and labor issues—both of which affect vehicle production. A flexible supply chain partner adapts to changes quickly and provides dependable services when they are needed. In 2023, automotive logistics will require a high performance, end-to-end 3PL solution.