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A Guide to Automotive Logistics and Freight Shipping Best Practices

A Guide to Automotive Logistics and Freight Shipping Best Practices

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Nathan McGuire
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October 29, 2021
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A Guide to Automotive Logistics and Freight Shipping Best Practices
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Despite the complexities of the automotive industry, experts predict this market vertical will experience significant growth in the near future. Observing the expected growth in automotive logistics, Business Wire states, “The automotive logistics market was valued at USD 180,723.8 million in 2020 and is projected to reach USD 302,822.8 million by 2028; it is expected to grow at a CAGR of 6.66% during 2020-2028.” Logistics throughout the automotive supply chain can provide technology-rich advancements in inventory visibility, data-driven decision-making, and shipment tracking. Manufacturers rely heavily on logistics to improve efficiency throughout the network for themselves and their customers. 

What Is Automotive Logistics?

Automotive logistics pertains to the planning and execution of the transportation process regarding auto parts and vehicles. A 3PL can provide technology advancements to increase efficiency in data, analytics, and service to aid shippers for more efficient freight procurement. The logistics provide deeper insight into the automotive supply chain to increase the manufacturing, transit, and purchasing of vehicles. Logistics benefits every step of the automotive process, including automotive shipping.  logistics helps manufacturers have the proper amount of inventory needed and also ensures shipments can be sent and tracked properly. 

Benefits of Effective Automotive Logistics

Proper supply chain management in the automotive industry prevents order backups, disastrous delays, and reduces the risk of losing customers. Automotive logistics can help vehicle manufacturers achieve increased efficiency in transporting finished vehicles or components. Partnering with a 3PL or freight broker business can provide manufacturers with technology efficiencies to improve business in a variety of ways. 

Improve Customer Experience

By integrating advanced technology into automotive logistics services, the manufacturer will have more data and knowledge needed to mitigate any customer issues quickly and effectively. Logistics services can provide more in-depth inventory records to address customer issues with order status, exchanges, and fees, boosting customer experience along the way. 

Lower Risk of Delays

Auto logistics providers can improve inventory visibility with specialized services and IT solutions to assist with demand planning. Manufacturers that are digitally enabled with proper loT and analytic capabilities can receive a real-time view on quantities of inventory, shipment location, and status. Access to reliable inventory data empowers companies to make data-driven decisions regarding excess inventory and ensure accurate inventory numbers. Long delivery delays can result in losing customers and profit. Logistics efficiency and working with the right partner can provide manufacturers real-time accuracy on inventory. 

More Reliable

Working with a tech-driven 3PL can provide companies with the proper data to process both inbound and outbound shipments. Increased data and analytics can ensure the appropriate parts and amounts are ordered and in stock. The advanced technology from automotive logistics companies in supply chain management systems can provide manufacturers with the data and analytics needed for automobiles and components to be ordered, assembled, and shipped correctly. Such logistics allow vehicles to be built precisely to the customer’s wishes or ensures the correct parts for a vehicle are available. 

Improve Profit Margins

Working with an automotive parts logistics provider can help manufacturers gain control and efficiency where it matters most: overall supply chain optimization through the use of technology advancements and data. In such a competitive market, manufacturers need to have the resources to gain an advantage through product pricing and increased profitability. 

Decrease in Recalls and Replacements

Automotive manufacturing operations have a high degree of complexity, given the high volume of parts involved and a higher risk for human errors. Implementing logistics solutions in the manufacturing supply chain can efficiently help improve automotive freight shipping accuracy. Having a digital system can allow companies to better meet customers’ needs, monitor inventory, and reduce the risk of human error throughout the process. 

4 Best Practices to Improve Automotive Logistics

Automotive manufacturers face many issues, including the ongoing truck driver shortages, compliance, and maintaining visibility to improve replenishment processes. They can overcome these and more through the following applied uses of technology:

  • Integrate systems to track emerging markets and inaccessible or otherwise sound markets in finding raw materials and resources. 
  • Aggregate data from connected systems to enable instant collaboration and planning across all activities. 
  • Work within 3PL-provided systems to track throughput and enable dense distribution in urban areas and more.
  • Leverage cloud-based platforms to track performance and reduce confusion in all activities.
  • Know what’s happening within the market with analytics-driven insights and market indicators to know what you to expect, what to pay, and when to diversify your carrier base.

Increase Automotive Supply Chain Management with Wicker Park Logistics

Working with a 3PL can provide the supply chain optimization and technology advancements needed to succeed in the automotive market. Manufacturers can gain control of the supply chain with technology, software, and management strategies through a reliable 3PL. Wicker Park Logistics can provide data-driven and tech-driven solutions to increase efficiency, profit margins, and visibility.  See the benefits of logistics throughout the automotive industry; speak to an expert at Wicker Park Logistics today.

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