Manufacturing Industry

Automotive industry drives optimization in logistics. (Great Ideas in Freight).

Purchasing, April, 2003 by Hannon, David

The unique requirements from manufacturers in the automotive industry make handling their logistics operations--both inbound and outbound--more challenging than most manufacturing industries. The manufacturing pace at many automakers requires a constant stream of just-in-time products to keep production lines rolling and every day cost control becomes a bigger issue for automakers in a down market. The result is a list of logistics suppliers growing more customized to their automotive customers while those customers get more demanding in what they outsource to logistics organizations, both internal and external.

Kevin Prouty, analyst at AMR Research, says there are two main strategies at work in the automotive industry's logistics operations. One school of...

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