Local manufacturing and risk management will be the trends of the future, predict speakers at the upcoming TAL 2023 conference

• Trends
• Interview

Important figures in the field of automotive logistics are heading to Pilsen again. They will present their views and experiences at the Trends in Automotive Logistics (TAL) conference on 16 May 2023. Prior to the conference itself, we asked our speakers two important questions about future trends in automotive logistics and the ability of companies to withstand the challenges posed by supply chain disruption. 

Speakers' answers included the idea of subsidy programs that will push companies to produce locally and create more complex products with higher added value, or the use of automation and new technologies such as neural networks or genetic algorithms. 
What else did the speakers tell us? 
 

 
What is one trend that you expect to shape the landscape of automotive logistics in the nearest future?

One of the major trends in the automotive and supply chain industry will be the volatile and ambiguous geopolitical situations in the world. This will include subsidizing programs that encourage companies to invest in local production and more complex value chains, as well as rapid political changes. Keeping the supply chain functioning in these conditions will be challenging.

What is the core ability a company needs to face the challenge of disrupted supply chains? 

The business models - processes, IT, organisation and culture - must be built to be resilient, while also being fast, flexible and efficient and effective. A sustainable cost structure in the companies has to cover this resilience. 
 

 
What is one trend that you expect to shape the landscape of automotive logistics in the nearest future?

Automotive logistics will become much more complicated in the future. Low inventories are no longer synonyms for effective logistics processes. Materials will not only be classified as A, B, or C parts but additionally as critical and uncritical. We will see higher inventories for critical parts, more cross-relations in the supply chain independent of tier-level as well as a new ratio of local and global suppliers. 

What is the core ability a company needs to face the challenge of disrupted supply chains? 

As trivial as it sounds, supply chain management will have to evolve into supply chain risk management. Companies will have to gain knowledge of their entire supply chain and organize their supplier relations, inventories, and logistics processes based on the results of a detailed risk analysis. To paraphrase Sun Tzu - if you know yourself and you know what obstacles you might face, you will never lose. 
 

 

 
What is one trend that you expect to shape the landscape of automotive logistics in the nearest future? 

A drive towards automation has long been visible across the automotive industry. In the area of internal logistics, a move towards robotics and greater autonomy is to be expected.

As far as logistics in general is concerned, it can be said that transported packaging units will no longer be "dead" boxes, but will become active elements in the entire logistics, thus contributing to greater flexibility in logistics chains. Thanks to this, strategies can be dynamically adjusted based on current requirements, and completely automatically, for example using the now popular neural networks or genetic algorithms. 

What is the core ability a company needs to face the challenge of disrupted supply chains? 

We perceive a high degree of flexibility and new ideas in small companies or startups. On the other hand, they have a very difficult situation compared to the big players, who despite a slight fluctuation in supply have the upper hand in normal situations. Let's take the best of both: let's try to develop cooperation with the big players, but at the same time be agile and look for new opportunities even in times of relative calm.

 

 
What is one trend that you expect to shape the landscape of automotive logistics in the nearest future?

One of the most important trends in the coming years will be the greening of logistics. While "last mile" logistics will be about alternative drives, reverse logistics and time savings through digitalisation will be important for longer distances.

What is the core ability a company needs to face the challenge of disrupted supply chains? 

Flexibility and the ability to make quick decisions at lower levels. The ability to react in a timely manner is increasingly important.
 

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