The logistics and automotive industry are inseparable as both need each other. Both the industries are dramatically aligning themselves as per the customer demands like the digital guidance technology and electric cars. The global automotive industry will value around nine trillion dollars by 2030 to manufacture around million units in 2021. The global logistics market value is to grow at a CAGR of 6.5% from 2020 to 2027 to reach 12,975.64 from 7,641.2 billion dollars. The rapid growth of the two industries and new trends make logistics a vital part of the automotive industry.

In this article, let us discuss how the best 3PL company is helping the automotive industry with all its inbound and outbound logistics for timely delivery to improve consumer satisfaction and boost sales.

Why is logistics critical for the automotive industry?

Logistics fundamentally is a process to plan and execute efficient transportation and storage of goods from the originating to the consuming point. The automotive industry needs thousands of parts procured from various originating points from many parts of the world to reach the manufacturing destination. Inbound logistics includes raw materials and many parts to assemble to make beautiful cars, vans, buses, and many others. All such manufactured vehicles have to reach the various retailer and dealer destinations worldwide for consumers to buy and use them.

What are the logistical challenges for the automotive industry?

The automotive industry’s supply chain and substantial multi-complex structures are the biggest challenges for logistic services. Only the best 3PL company with advanced technology can solve the many challenges of the automotive industry’s inbound and outbound logistics. It requires expertise in designing supply chain management, proper process planning, and excellent operations efficiency. Only then the inbound and outbound logistics will happen smoothly for delivering the goods in time. Any let out in it will result in many complicated issues resulting in monetary losses and loss of customer satisfaction and, hence, the business reputation and value.

What are the ways that the best 3PL company facilitates automotive logistics?

Even the pandemic has little impact on the number of automotive units worldwide, especially in the US. In the severely competitive automotive industry, even the big and best manufacturers are now utilizing the logistical services of 3PL companies. To outsmart the competitors in the changing automotive market, they take their insights and advice apart from logistical support, including warehouse facilities. Big automobile companies wanting to be close to the buyers establish manufacturing plants in many locations worldwide. Hence the need for inbound logistics for sourcing parts from hundreds of locations and outbound logistics of delivering finished vehicles to thousands of locations is a challenging task even for the big global automakers. The following are how a 3PL company enables logistics in the automotive industry.

  • Offers effective designing for the entire logistical processes, both inbound and outbound, for timely delivery
  • Ensures adequate safety of the various goods in storage in warehouses  and during transit to deliver them at the destination without any damages
  • Complies with all the rules and regulations of place of storage or transport of goods to not incur fines and avoid any issues to waste time, effort, and costs.
  • Have all sizes of trucks to transport even the huge multi-shaped components and vehicles safely for the practical manufacturing process and to look brand new for sales.
  • Offer tech-enabled solutions to track the movement of the goods in real-time to deliver the raw materials just-in-time to save storage costs.
  • Have massive warehouses for storing the raw materials and finished vehicles until the manufacturing unit requires them for making them and dealers for sell them

The above facts and ways of the best 3PL company will convince anyone about logistics in the automotive industry to utilize their services.