Automotive aftermarket manufacturers and suppliers are under increasing pressure to improve supply chain performance. New services from DB Schenker and UPS could help them optimize operations.
In February, Schenker announced new solutions targeted specifically at the automotive sector. According to Stephan Allgeier, Vice President Vertical Market Automotive – Global Business Development Schenker AG, digitization and automatization are driving these new logistics services.
“A full transparent supply chain, reacting flexible on market demands while creating zero defects is key for our customers,” Allgeier says. “Although the level of automatization will increase, flexible and reliable HR concepts are still one of the major factors for success. DB Schenker as a global partner for its customers works proactively on those challenges.”
UPS also announced it would expand its UPS Worldwide Express package service to reach 124 countries and territories. The service guarantees delivery in one to three business days. The service is used heavily by automotive customers in territories like Brazil (one of the expansion territories). South Korea was also part of the expansion, and the automotive electronics and aftermarket industries there will also benefit from faster supply chain performance.
Faster Service, Increased Visibility
Schenker will increase delivery frequency and other warehousing/logistics services for customers in the automotive market, as well as offer more specialized services.
“For certain customers we are offering up to three deliveries per day to reduce expensive stock levels at the point of sale while providing a high level of parts availability,” Allgeier says. “To support these solutions, DB Schenker links warehouse services with transportation services. A full visibility of the supply chain can be offered by track-and-trace systems.”
Schenker not only provides traditional logistics services to automotive manufacturers and suppliers. It also operates warehouses and spare parts centers for a number of customers.
“We are offering services around the physical inbound as well as supplier management, material requirement planning and value-added services,” Allgeier says. “For example, we deploy a team of experts who design shipping packages for oversea transports or we perform quality services. Of course, we add outbound services like pack and ship, national and international distribution and reverse management.”