Articles

Intelligent Network Planning in Automotive Logistics and its Challenges

by Shimoli S. Engineering Graduate

More than 15 million vehicles worldwide travel from factories to the customers on an everyday basis. The different parts of a vehicle might be produced in different countries and assembled in a totally different country. When a customer living in some other country wants to buy a car, the cars often have to travel a long way from the production site to the end customer. The route can be by ship, rail, trucks or a combination of them. The cars are even temporarily stored at huge terminals if a stop is required.

The car manufacturers need to have proper networking when it comes to organizing the transport. Some of the challenges faced by the auto logistics in India and across the world are:

 

Growing distances between the factory and dealer

For higher profits, car manufacturers have shifted their assembly plants to low-wage countries. Because of this, the distance between the plant and the customer’s doorstep becomes longer, and the transport distance increases too.

 

Variety and relocation of production steps impact the transport route

The increasing number of variant options also have an influence on the network planning. The demand for specific vehicle equipment has increased the number of necessary vehicle modifications that cannot be carried out in the factory. These operations are carried out on terminals instead. These factors also need to be considered during network planning.

 

Specific equipment for vehicle transport

The challenges in vehicle distribution can also increase because of the ports not having special equipment for the same. Special equipment like railway carriages for vehicle transport, vehicle terminals and transporters, roll-on roll-off ships and ro-ro vehicle terminals should be incorporated in the ports.

 

To meet the above challenges, some of the requirements for better network planning can be optimizing network in terms of cost and delivery time. Also, you can review the entire network and use the combination of access routes and means of transport that give optimum results and saves cost.

 

The ultimate aim of intelligent network planning in automotive logistics is to effective designing of transport networks for cost saving and reduced delivery time. A logistics company can help you with all your auto logistics needs.

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About Shimoli S. Freshman   Engineering Graduate

2 connections, 1 recommendations, 27 honor points.
Joined APSense since, September 21st, 2017, From Kolkata, Asia/Pacific Region.

Created on Sep 24th 2018 08:26. Viewed 459 times.

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