Logistics for automotive – a closer look
Even the smallest disruptions in global supply chains can lead to financial losses, production line downtime, and delays in order fulfillment. The high susceptibility of the automotive industry to disruptions results from the extensive dispersion of manufacturing and supply operations.
However, thanks to solutions such as SAP Automotive, logistics gains in stability and efficiency. The system enables centralized data management at every stage of delivery, as well as the integration of information from suppliers, logistics operators, and manufacturing plants. It provides greater transparency of material flows and enables the rapid identification of potential risks.
Automotive logistics – the just-in-time model
For many years, logistics in the automotive industry has been based on the just-in-time model, which supports inventory reduction and, consequently, lower warehousing costs. At the same time, this approach involves an increased risk of production downtime resulting from unforeseen events. An increasing number of automotive companies recognize the need to adopt a more flexible planning model and thereby achieve greater operational resilience.
In this case as well, SAP Automotive can prove to be helpful. Logistics supported by a modern SAP IT solution is based on advanced production and delivery planning, taking into account demand variability and component availability. The system enables the simulation of different scenarios, but not only that. It also allows for precise analysis of the impact of delays on the production schedule and for adjusting it to current conditions. This, in turn, helps reduce the risk of downtime and increase control over costs.
Logistics for automotive – cooperation with suppliers
Another challenge for automotive logistics is the multi-tier supplier structure. Due to the lack of transparency at individual levels, rapid response to quality or logistics issues may be difficult. The complexity of managing the supplier network also results in difficulties in coordinating production and delivery schedules, especially in the context of rapidly changing demand and short product life cycles.
Logistics for the automotive industry, supported by a dedicated SAP solution for the automotive sector, is based on standardized processes, automated communication, and efficient data exchange in near-real time. This enables faster responses to delays and quality issues and supports the development of partnership-based, transparent relationships with suppliers.
Automotive logistics – other challenges
Other challenges related to automotive logistics include limited access to up-to-date data, rising energy and transportation costs, and the need to adapt to sustainability and CO₂ emission regulations.
With SAP Automotive, addressing these challenges becomes easier. The system not only provides access to consistent, up-to-date information, but also offers advanced analytical functions that facilitate the monitoring of key indicators, forecasting disruptions, and making well-informed decisions. SAP Automotive supports a new approach to logistics by enabling route optimization, analysis of the carbon footprint of logistics processes, and more efficient use of resources. As a result, automotive companies can increase operational efficiency and pursue sustainability-related objectives without the risk of losing competitiveness.
