Automotive Logistics May Be on the Rebound

According to Transport Intelligence, the reversal of fortune may mean a wealth of opportunities for logistics service providers on a global scale.
By Patrick Burnson, Executive Editor
January 10, 2013 - SCMR Editorial

While just a few years ago, the global automotive logistics sector was regarded as moribund at best, a new report suggest that demand from emerging markets are changing all of that.

According to Transport Intelligence (Ti) – a London-based think tank – the reversal of fortune may mean a wealth of opportunities for logistics service providers on a global scale.

“The automotive world looks like it is evolving into one dominated by a few large global Vehicle Manufacturers with operations in markets such as China, Brazil, Russia, India and elsewhere integrated into supply chains heavily rooted in North America, Western Europe and Japan,” said Thomas Cullen, Senior Analyst at Ti and author of Global Automotive Logistics 2013.

Cullen added that providing the logistics systems to support this structure will be the main challenge and opportunity for automotive logistics service providers from now on.”

In its new report Global Automotive Logistics 2013,  analysts note that following the global economic crisis of 2009, the automotive sector has recovered dramatically, surpassing the levels of demand witnessed before the crisis. The market is now worth an estimated 57 billion euros annually, rejuvenated by a surge in demand for vehicles in developing markets, in particular China, as well growth in demand such as in the North American markets.

The continued increase in demand in developing countries has resulted in structural changes in the market and created significant opportunities for logistics providers. For example, the explosive growth of vehicle sales in China has also led to a rapid increase in production in the country by global manufacturers.

Rosemary Coates, president of Blue Silk Consulting, and a regular SCMR blogger, has noted that this represents a significant opportunity for global logistics providers operating in the region as manufacturers demand Western standards of logistics service levels.

Ti said It is anticipated that China’s automotive logistics sector will grow by 10% per annum until 2014.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

Article Topics

News · Global · Supply Chain · Logistics · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA