Satish Lakkaraju, Senior Vice President, Global Head, Air Freight & Pharma, Wiz Freight, explores the dynamic landscape of automotive logistics. Highlighting the impact of technology, EVs, and efficiency improvements, he addresses key challenges and offers solutions.
In recent years, the landscape of automotive logistics has undergone a transformative evolution driven by technological integration. The adoption of digital solutions and enhanced connectivity has been instrumental in streamlining logistics processes within the automotive sector.
Notably, the surge in Electric Vehicles (EVs) has compelled a strategic shift in logistics, emphasising efficient transportation of EV components and the development of charging infrastructure. The inclusion of EV batteries, classified as Dangerous goods, introduces unique requirements and paperwork considerations.
Reflecting on a century of progress, logistics processes in the automotive industry have exhibited resilience through technological advancements and streamlined supply chain management. The journey has witnessed a continuous commitment to efficiency improvements, marking a dynamic era where innovation and adaptability have become pivotal in shaping the ever-evolving landscape of automotive logistics.
Logistics companies tackling automobile shipments confront a host of challenges. The intricate automotive supply chain, marked by diverse components and suppliers, introduces coordination and management complexities. Fluctuating demand in the automotive sector necessitates continual adjustments in transportation and distribution processes, demanding adaptability from logistics firms. Stringent regulatory standards related to environmental, safety, and transportation aspects add an additional layer of complexity, requiring dedicated compliance efforts.
Transportation hurdles, notably in regions like India, hinder the seamless flow of automobile shipments, amplifying logistical intricacies. Insufficient visibility into the supply chain, both upstream and downstream, presents obstacles impacting demand management and overall resilience. Compounded by rising fuel prices and heightened input costs, logistics companies face a formidable challenge in maintaining pricing levels, intensifying the imperative for operational efficiency and cost-effectiveness.
Efficient and timely automobile delivery is ensured through strategic measures. Route optimisation employs strategies considering vehicle capacity and delivery order. By embracing multimodal transportation, Indian railways and inland waterways supplement existing practices. Technology integration, utilising tools and software, streamlines the delivery process, ensuring precision and on-time deliveries. Innovative startups provide end-to-end visibility in this tech-driven approach. Key metrics tracking, encompassing delivery times, vehicle utilisation, and performance indicators, is employed to continually monitor and enhance delivery efficiency, contributing to an effective and reliable automobile logistics system.