Episode ‘FCA What’s Behind’ by Fiat Chrysler Focuses on Supply Chain

Fiat Chrysler Automobiles (FCA) offers a behind-the-scenes look with a documentary series. This time, the focus is on the logistics and supply chains of the automotive group. This is particularly interesting in light of the new direction of the automotive industry as a whole. The FCA group also emphasizes sustainability in its supply chain through various measures.

(Turin) In the third episode of the second season, the documentary series takes a look behind the scenes of the supply chains at Fiat Chrysler Automobiles (FCA). Logistics management acts as an interface between production and sales, at FCA on a global level and with a focus on sustainability. Efficient supply chains generate benefits for customers, manufacturing, and the environment.

The documentary series “FCA What’s Behind” looks behind the scenes of Fiat Chrysler Automobiles (FCA). The first two episodes of the second season provided a comprehensive overview of the company’s philosophy: the constant pursuit of progress, expressed through research for even more sustainable drive systems. The goal is new forms of mobility that have their roots in the prestigious and inspiring history of FCA. In this philosophy, the automobile is not just a means of transport, but the embodiment of ideas, dreams, and perspectives that must be as accessible as possible. Industrial production is required for implementation. However, logistics is also essential for reaching customers. The management behind supply chains and logistics is the focus of the third episode of “FCA What’s Behind”.

The Global Interface Between Production and Sales

The logistics management of an automobile manufacturer serves as the interface between industrial production and sales. In the supply chain, materials and semi-finished products are moved, linking various production sites, and the finished vehicles are finally delivered to customers. The task of logistics management is to synchronize the entire process precisely like a clockwork to avoid inefficient downtime and delays.

At FCA, the scope of logistics management encompasses the entire global supplier network, all distribution centers, and over 100 plants worldwide. This structure alone is an example of the global character of the company. To quickly and efficiently meet customer demand, material movements must be planned precisely and be fully operational even before the actual production starts.

Highly Complex System

Logistics management must maintain the balance of production by aligning the capacities in the factories with demand. In the supply chain, quantities must be established and necessary resources built up to optimize material flow and inventory. This creates an extremely complex and organic system, where all components work towards a common goal: to produce vehicles configured to customer specifications on time. Only in this way can orders from every FCA trading partner worldwide be fulfilled quickly and efficiently. The management of supply chains and logistics comes into play right after the order is placed. Material usage, production, and capacities in the individual plants must be coordinated.

Transport is Handled by Own Subsidiaries

Based on the established schedule, I-Fast Container Logistics, a wholly-owned subsidiary of FCA, organizes the transport of individual components from suppliers to FCA plants, where they are processed and assembled. Once the car is produced, another FCA subsidiary takes over the transport to dealers worldwide: I-Fast Automotive Logistics. For the transfer from the delivery warehouse to the port, state-of-the-art, natural gas-powered car carriers are also used, representing the sustainable revolution in freight transport. Approximately 60 percent of the incoming and outgoing transports at FCA plants are environmentally friendly via sea or rail.

Environmentally Friendly Transport Routes

FCA also enhances sustainability through organizational innovations. For instance, the optimized loading of containers resulted in a saving of around 600 tons of CO2 alone in 2019. Through further measures to optimize material transport, over 1,500 tons of CO2 are saved annually. Finally, by streamlining vehicle transport by road, sea, and rail, CO2 emissions were reduced by an additional 2,700 tons. The management of logistics and supply chains at FCA operates in an innovative, flexible, and sustainable manner to meet every customer request while achieving benefits for production and the environment.

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