"Innovation in the automotive industry could use a boost"
The automotive sector found itself under the spotlight at the recent ELUPEG conference in May, as the industry's approach to collaboration was called into question. The event, held at DHL's Innovation Centre near Bonn, Germany, brought together industry leaders to discuss the future of logistics collaboration. Despite the success of projects like the CO3 initiative, which aims to stimulate collaboration in European logistics, some automotive companies were conspicuously absent at the meeting. The identities of these companies, which have previously contributed to the spread of CO3's successes, remain undisclosed in the available search results. Brian Bolam, deputy chairman of ELUPEG and president and founder of OmPrompt, emphasised the importance of shared efficiency in successful collaboration. He suggested that companies should first focus on becoming lean before seeking external help to drive costs down further. Bolam also advocated for viewing the supply chain as a means to an end rather than a competitive weapon. However, some carmakers remain hesitant to collaborate due to fears that a partner might not meet standards. This insular attitude within the automotive sector is contributing to strained relationships between carmakers and transport providers. The fast-moving consumer goods (FCMG) and hi-tech sectors, on the other hand, are leading the way in logistics collaboration. DHL's Tradeteam joint venture with Molson Coors for the drinks industry is an example of this shift, with improved transport costs achieved through high synergy and the development of collaborative consumer end-to-end supply chains. ELUPEG is eager to rectify the gap in the automotive industry's collaboration efforts. Speakers at the May meeting expressed concern that the industry's own efficiency might be hindering its ability to adapt to new collaborative models. To address this, ELUPEG has announced its next meeting will take place in Amsterdam in November. Prof. Dr. Sebastian Kummer from WU Vienna University of Economics and Business recognised the automotive industry's historical leadership in supply chain efficiency. However, he also noted that this success has led to an intractable attitude towards overcoming antitrust issues, empty and circuitous return legs, and low-capacity utilization in finished vehicle movements. One area where progress has been made is in the development of shared inbound milkruns between major OEMs, as discussed at the ELUPEG meeting. This is a promising step towards a more collaborative future for the automotive industry. Despite the challenges ahead, Bolam remains optimistic. He pointed to Ford's 'slick supply chain' as an example of a carmaker open to collaboration. As the industry continues to evolve, it's clear that collaboration will play a crucial role in driving efficiency and innovation in the automotive sector.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
- North Carolina's food bank receives a solar energy upgrade as Republican legislators contemplate budget reductions
- Impact of COVID-19 on Poland's Ability to Achieve its 2020 Renewable Energy Target
