Pandemic Poses New Logistical Challenges for the Automotive Industry

DHL Supply Chain presents the new trend report ‘Automotive – A Shifting Landscape’, which sees the automotive industry facing significant changes. The current trend report shows how consumer behavior impacts international OEMs. Localization, digitalization, and sustainability are key drivers for transformation. Tailored supply chain services can support the shift in the automotive sector.

(Bonn) DHL Supply Chain, the contract logistics specialist of Deutsche Post DHL Group, has aligned current insights from renowned research institutes regarding the impact of the pandemic on trends in the automotive industry. According to the new trend report ‘Automotive – A Shifting Landscape‘, the automotive industry is facing significant changes arising from the emergence of new technologies, a shift in customer expectations, and an increasing focus on environmental, social, and governance (ESG) policies. DHL Supply Chain offers solutions that help OEMs adapt to the challenges of the industry and achieve their ESG goals.

“The closure of borders and sales outlets has highlighted the importance of flexible and reliable supply chains over the past year. The automotive industry will transition to a new normal after the pandemic, where business models change and automation increases. But these are not the only challenges OEMs will face in the future. We also see the role logistics plays in corporate sustainability. There are numerous ways to support the automotive industry on the path to greater environmental awareness,” says Dr. Dietmar Steins, EVP Global Solutions Design at DHL Supply Chain. “We help our customers integrate current trends such as sustainability and digitalization into their supply chains.”

Online Car Sales?

The study reveals these aspects and shows how they affect the automotive industry and how mutual dependencies are created. Automotive manufacturers and their suppliers are rapidly moving towards emission-free mobility thanks to electrification, while COVID-19 shapes future fluctuations and distorts past forecasts. As OEMs are also affected by revenue losses, investments in future trends such as self-driving cars have been cut or realigned. The online sale, once claimed to never replace the customer experience at dealerships, could now gain momentum. Projects and investments that do not contribute directly to profit have been postponed. On a broad scale, the pandemic has questioned some deeply rooted principles of the industry regarding globalization and supply chains.

According to researchers, independent regional strategies in the automotive industry will gain importance. In times when countries close their borders and production sites shut down, localization or at least the flexibility of supply chains is key to the industry’s resilience. Studies also show that the automotive industry is far from reaching the end of digitalization. With the emergence of automation and connectivity, massive investments are being made in artificial intelligence and machine learning. In the age of big data, OEMs are transitioning to a more service- and customer-oriented model. This will also lead to changes in business models. Furthermore, to make the industry more sustainable and comply with relevant policies, the supply chain must also be given greater consideration in the future. Environmentally friendly solutions are in demand to pave the way for greener mobility.

Managing Complex Supply Chains

“Thanks to our long-standing expertise in managing complex supply chains, we can recognize changes in the industry early and adapt accordingly. With our sustainable warehousing, transportation, and packaging solutions, we provide OEMs with the support they need to achieve their ESG goals. The transition to e-commerce or direct sales is also facilitated by the digital platforms and other digital trading solutions we offer. We are very proud to be able to provide the automotive industry with this much-needed support,” says Hendrik Venter, CEO DHL Supply Chain EMEA.

Logistics service providers today act as an extended arm of the customer. Therefore, a reliable partner with an extensive network is essential for building customized supply chains. From designing the supply chain to digital commerce and aftermarket solutions for electric vehicles or sustainable logistics – DHL Supply Chain can assist with tailored solutions. For example, in establishing flexible and decentralized supply chains that enable faster delivery to customers via e-commerce. But also in adapting logistics to changing requirements, such as those associated with e-mobility. To reduce the carbon footprint, the logistics expert offers emission-saving transport or value-added services such as upcycling spare parts in the circular economy. In this way, DHL Supply Chain supports OEMs in adapting to future challenges to achieve their corporate ESG goals.

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