manufacturers or OEMs all over the world are increasingly adopting the lean
model. In short what it means is that almost everything is outsourced and put
together on the assembly line. The only factor of critical importance is that
the parts outsourced need to reach the manufacturing plant on time, every time.
And with plants running two to three shifts on a single day basis, the
availability of components assumes great significance.
at a recent major automotive conference held in Bonn, Germany, unanimously
agreed that increasing to 24-hour vehicle production heightened operational
risks. Furthermore, a quarter believed that line stoppages would be an
inevitable result of intensified schedules. Emergency logistics is able to
reduce the frequency and severity of the potential impact of these risks by
easing the transition period and enabling a sustainable production schedule,
says emergency logistics specialist Evolution Time Critical.
Time Critical is the world’s leading specialist in emergency logistics for the
automotive industry. Every day, its global 24/7 emergency operations centres
meet the tightest of delivery schedules for customers in the UK, Europe, USA,
China, India and across the world.
to a press statement “Unplanned production line stoppages can cost vehicle
manufacturers over £1m (Rs 10 crore approx.) an hour, which underlines the
financial penalty of not having the means for a robust transition in place,”
explains Evolution Time Critical managing director, Brad Brennan.
one of the most revealing findings was that three-quarters of delegates
believed that the risk of ramping up production schedules could be successfully
managed, where premium freight can play a large part in the provision of
contingency. A 24-hour production removes the supply chain safety buffer
provided by assembly downtime, during which maintenance work can be carried out
or reserve stocks replenished, but acceptance of the challenges that lie ahead
and awareness of the risks involved affords the opportunity to successfully
mitigate these issues,” he added.
number of vehicle manufacturers have recently moved, or have announced plans to
move, to a three-shift pattern to meet the increasing demand from a resurgent
automotive industry. This heightens the pressure on Tier 1 and 2 suppliers and
puts increased strain on the supply chain as it adapts to new schedules. As
this industry trend grows, it is crucial that suppliers and OEMs be prepared
for fluctuating demand and deviation from previous forecasts.
is essential that appropriate solutions are in place to ensure that production
schedules are not put at risk. Effective contingency planning and work with
emergency logistics specialists such as Evolution Time Critical can help
deliver such measures,” says Brennan, adding, “A reliable emergency delivery
system is vital to support a supply chain under increasing pressure, to avoid
possible delays, and can help vehicle manufacturers work towards optimising
production during and post-transition by providing the reassurance of a
just-in-time safety net.”