How can a Depressed Car Market be Short of Logistics Capacity?

DETROIT, MI, Automotive Logistics Global Conference 2010, Sept. 13 /CNW/ - Concerns are rife among carmakers that both inbound and outbound logistics capacity could knock back the industry's recovery. And even though August car sales data for the US is depressing reading, carmakers focussed on underlying recovery from the nightmare production levels of 2009 are seeing looming shortages.

"We haven't felt the heat of under-capacity yet," says Scott Crail, finished vehicle logistics operations manager for American Honda, commenting on the shortage of trucks for car delivery. But "it won't be long before there just aren't enough drivers to meet the demands of a steadily increasing car market".

A great deal of trucking capacity and, importantly, many drivers left the sector as car production dived during the recession, and have not been replaced.

On the inbound side, supply chains which stretch back to Asia are being constricted by a shortage of containers, and by mechanisms like slow steaming used by shipping lines to survive the recession. Parts manufacturers can adjust schedules, says Mike Silvio, director of supply chain management for Cooper Standard, but "there isn't a fluid flow of information". The company produces a wide range of auto subsystems, and Silvio says that scarcely a week goes by without having to call on expensive airfreight to keep auto production lines rolling.

Both men were speaking in interviews to be published in the latest issues of Automotive Logistics magazine, and its specialist Finished Vehicle Logistics publication. They reflect widespread worries that auto production could be so far below the peak levels of 2007, and yet be suffering capacity shortages.

Automotive Logistics is holding the 11th in its annual series of high-level conferences for carmakers and logistics providers in Dearborn MI from 4-6 October. The conference will dissect the capacity issue along with other critical concerns, and is the recognised open forum for bringing together OEMs/tier suppliers with logistics service providers.

The programme includes OEM executives responsible for both inbound and finished vehicle logistics, including respectively Michelle Braun and Vicki Streukens from GM, Steve Harley and Walter Lowe from Ford, Dana McBrien and Dennis Manns from Honda, and many other key figures like Heath Holtz, responsible for Nissan's supply chain, and Mike Nelson of Toyota, Scott Mabry of Volkswagen and Steve Tripp of Chrysler, all responsible for finished vehicle movement.

In addition to Mike Silvio, key tier suppliers will be represented by executives including Sylvia Hill, global logistics director for Delphi, Michael Meier, lean supply chain manager for Lear, Timothy Nickel, global manager for packaging engineering at Visteon, and Faith Wandrie, global logistics director for Henniges.

The conference combines networking, learning and participating in an intense two-day event. It opens with introductory cocktails the night before the conference starts, and continues through formal presentations, working break-out sessions and split-streams for specific subject areas. There is plenty of opportunity to network at coffee breaks, lunches and the business dinner on the middle evening.

"A good forum for interfacing," said Susanne Webber, then executive director for global logistics at GM, after 2009's conference. Webber has recently been appointed to head purchasing and supply chain for GM Europe.

"This conference is the best event of the year for everyone," said Tom Jones, senior vice president at Ryder. "A fantastic opportunities for networking," echoed Dan Ferrell, director of parts logistics for Nissan, after last year's event.

Cross-industry attendance is ensured by the presence of major LSPs, transportation companies, ports & terminals, equipment makers and support services, including IT and vehicle protection. Companies include Ryder, CEVA, Landstar, Union Pacific and Wallenius Wilhelmsen among logistics and transport providers, JDA Software and Zebra Enterprise Solutions among IT providers, and Delevan Industries among equipment providers.

Other topics on the formal conference agenda include globalisation and the whole supply chain view, which is undergoing renewed scrutiny both for its resilience and its ecological impact. Specific subject areas to be covered include crossdocks, service parts, IT and supply chain strategy.

Sponsors of Automotive Logistics Global Conference, who will all be exhibiting and have senior executives at the event, are: Premier sponsor Ryder; Gold sponsors Delevan Industries, CEVA, Exel/DHL, JDA Software, Landstar, Union Pacific Railroad, Union Pacific Distribution Services and Zebra Enterprise Solutions; Global sponsor Wallenius Wilhelmsen Logistics; and Silver sponsors Amports, Comprehensive Logistics, Covercar, FedEx, Goodpack, Inform, NYK Logistics, Sunderland City Council, Surgere, Trenstar and Vascor.

The conference is supported by the AIAG, the association of carmakers and suppliers dedicated to improving automotive supply chains, and by the ACC, the national association of trucking carriers.

More information and register to attend at http://www.automotivelogisticsglobal.com

For further information: Notes to Editors: Contacts: Elisabeth Quesseveur, Marketing Manager: [email protected], [phone]; Louis Yiakoumi, Conference Director: [email protected], [phone]; Christopher Ludwig, Editor: [email protected], [phone]