Therefore, the integration of multiple suppliers in a logistics chain is positioned as a challenge for the region
The Covid-19 pandemic has driven an over-demand for technological items and digital platforms to be able to face these challenges and sustain local and regional economies. This forces electronic equipment companies to increase their stock, affecting the production and supply capacity of semiconductor manufacturers, a situation that profoundly impacts automobile manufacturers, since the electronic part can represent up to 47% of the cost and the share of the total composition of a car.
Speed up or slow down the supply chain
According to the Argentine-German Chamber of Industry and Commerce, more than 80% of the world’s automotive supply chain is connected to China, so the closure of the automotive components market in that country is impacting the import capacity of cargo from the Asia-Pacific zone to Latin America.
Likewise, the maritime market is at a time of contraction of spaces, which affects the reliability of itineraries and transit times, which causes instability in planning and an increase in the demand for services. This results in a destabilization of the logistics budget and production times.
Another challenge that light vehicle manufacturers face as a consequence of the pandemic is the shortage of semiconductors, which since the end of last year has been impacting production lines and also taking over the capacity of United States ports, that has altered the component supply chains used to just-in-time logistics, where parts are delivered to factories according to their production and inventory needs.
These changes are leading companies in the automotive industry to seek new solutions to manage their supply chains, whether to accelerate or decelerate supply and seek alternatives from intermodal transport to warehousing services.
“The automotive sector, as a great example of the transformation that drove the pandemic, today faces the enormous challenge of implementing innovative solutions and strategies that allow it to integrate the various points in its supply chain. This is being an important boost for all those companies. 4PL solutions where an accurate response, greater stock control and visibility are sought when strengthening the supply chain in the face of current demands, “said Karina Marín, Automotive Sector Manager for Maersk Mexico and Central America.
The challenges of the reactivation of the sector
An average car is made up of between 60,000 and 90,000 parts. Of these, only some are produced directly by the manufacturer, while others are shipped by direct suppliers who, in turn, may have other suppliers.
Thus, in the last decade, automotive companies have extended their supply chains around the world, making them increasingly complex and with wider geographic coverage, a process that hinders the visibility, transparency and effectiveness of logistics.
The challenge is to integrate a resilient logistics system that adjusts to the complexities of the automotive industry supply chain and that allows OEMs (Original Equipment Manufacturer) to anticipate disruptive events, minimize economic impacts and increase their competitiveness.
The path to supply chain integration
Achieving the integration of multiple suppliers in a logistics chain is an important challenge for the Latin American automotive industry, considering both the distances of the producers and the particularities of the global pandemic.
For this reason, integrating all your processes in a single logistics operator is a solution that can optimize times, inventories and resources. 4PL solutions are tailored to the needs of the automotive industry, managing inventories and parts stock with a sequential online supply strategy, capable of speeding up or slowing down the delivery of your inventory depending on the needs of each OEM.
This 4PL solution, built in conjunction with E2Open capabilities, is designed to transform raw information throughout the supply chain into actionable insights for agile decision making. This means that even if logistical disruptions arise, alternative intermodal options such as rail or air transport are designed to build more resilience. All to ensure that components reach your global markets on time and as planned.
(August 12, 2021)
Pandemic and shortage of microcomponents slows progress in the Latin American automotive industry
Mundo Maritimo
https://www.mundomaritimo.cl/noticias/pandemia-y-la-escasez-de-microcomponentes-frena-avance-de-la-industria-automotriz-latinoamericana
