Automotive Logistics Europe Conference, Bonn

Overall, the conference was filled with some very exciting developments for the automotive industry and the supply chain.

With growth both in Europe and globally, the supply chains are increasing in complexity and standards of performance. With an increase in volume and need for new systems and expertise it can only spell good news for logistics and packaging supplies.

It was interesting to hear that VW are looking to reduce their carbon emissions by 25% by 2018. The environmental impact of transportation has been a burning issue for a while and is a bold move in the right direction. In terms of returnable packaging reducing emissions is high on the agenda. With manufacturing globally on the rise ensuring the utilisation of the capacity in packaging is essential, if this is done properly a reduction in the environmental footprint will follow.

Also, just the principle of returnable packaging aids this. Expendables are disposed of and require a recycling process. Just by using a packaging solution more than once will go towards improving the footprint.

Marzell Bandur, Director of Supply Chain Planning at Opel, spoke about looking at packaging design, supply flows and consideration for costs.

“For example, we are transporting more parts, larger part, over larger distances. With carbon dioxide emissions taxes, as well as road toll prices, it means that the costs involved along the supply chain are much higher”. – Marzell Bandur.

All of the points made above look directly towards the potential of returnable packaging. A returnable packaging solution cannot only cover those areas but deliver on them with one simple solution which can provide a clear breakdown of costs and savings.

Lastly, it was refreshing to see that the importance of logistics to the whole business model was brought up. Having a representative from supply chain and logistics on the board of management is something that other industries have embraced; this was pointed out by delegates from Starbucks and Amazon. A lesson to be learnt by the automotive industry in my opinion.

Levent Yuksel, from Jaguar Land Rover, made some great points on the issue.

“Logistics needs to be thought of as cross-functional, it’s as much about trying to keep customers, manufacturers and suppliers all happy. We should be putting a logistics person on each company’s executive board. This would give a competitive advantage. We shouldn’t be thinking ‘logistics is a cost and a waste’”.

Logistics and supply chain have an impact/influence on all areas of the executive board so it makes sense to place someone there. And if done correctly and effectively logistics can be a cost that works and reduces waste to the overall manufacturing process that both aid the bottom line. 

The Importance of Globalisation

Last week I chaired the Returnable Packaging session at the Automotive Logistics Europe Conference in Boon, Germany.

It was an extremely insightful and productive discussion with one of the main topics was the importance of globalisation.

Previously, automotive manufacturers would operate on a regional basis, selling models especially into continental and national markets. There was a requirement for global supply chains but for the standardised parts that were used in all models.

Now more than ever models are being manufactured and sold internationally. Tier suppliers are now required to ship globally as opposed to regionally. With this trend set to continue and grow there is a heightened need for an agile global supply chain.

Returnable packaging plays an integral part of building a global supply chain. It is no longer a matter of packaging components that will be transported within the same country or continent. Components are required in larger quantities in numerous locations around the globe and are travelling longer distances.

To create a sustainable supply chain that is able to keep up with trends and developments in the automotive industry only points in one direction – returnable packaging.

The industry now requires packaging that ticks the large as well as the small boxes. The large boxes are durability and size. If components are passing through numerous countries on their trip across the world using more than one form of transport, a solution needs to ensure quality upon delivery and comply with transporting requirements in terms of size in the various jurisdictions.

These were the areas that I am pleased to say came up during the session. It provides an indication to me that the OEM’s, tier suppliers and manufacturers know that they have to move and modify their supply chains in order to produce results.  

One trip returnables – why don’t you just have a go?

The one thing that strikes me about the automotive supplychain is the reluctance to try something new for the first time.

There is a lot of talk around where logistics and the supply chain will move with technology and how savings are made. This was a topic of discussion at the Automotive Logistics Conference in Bonn last week, looking to what lies ahead and how they can improve.

It is all well and good talking about it but it is actions that will help the industry realise how they need to move forward in an expanding market.

This is where I encourage the automotive tier suppliers and OEMs to look at where they would like to go with returnable packaging and commit to doing a free trial.

A lot of people are put off when looking to make the shift from expendable to returnable solutions. There is the impression that you have to make your decision and stick to it. Stop using expendable one day and begin using returnable’s the next. This is far from the truth as you trial new returnable methods alongside the existing ones to give you a real flavour of the benefits of using returnable packaging.

One trip solutions are a great benefit of using returnable packaging. Irrespective of where you require your products all you have to do is rent the packaging, it is delivered to your desired destination and you don’t have to worry about the return journey. Then pooling companies arrange for the containers to be picked up after you have finished with them helping to reduce packaging costs. How easy it that?

All that is asked of the automotive industry who are looking to make the switch from expendable to returnable is to look into a free trial now so that you can experience the benefits first hand.

I encourage anyone who is looking into this or have any questions in how I can help to improve your supply chain to talk to me.

Communication is key, if I am where of your problems at the outset I can help you resolve them quicker, saving you time and money.

Boxing Clever – Packaging workshop at the Automotive Logistics Conference, Bonn

In what ways can innovation and new packaging techniques add value in the automotive logistics industry?

This will be the topic of the Packaging workshop that I will be chairing later this week at the Automotive Logistics European Conference in Bonn, Germany. How can we all raise to the ever evolving challenges and demands being set by the OEMs?

People want a lot of components and parts supplied on a global scale and at larger quantities than ever before. Everyone wants to receive their goods straight to line side, taking out unnecessary handling processes and saving time, and most importantly a one touch supply chain.

So how do we in the packing industry tackle these rising demands head on?

The session will be concentrating on delivering a viable system for returnable packaging on a global scale that not only meets but exceeds the automotive industry’s objectives for a modern day supply chain.

I invite all who are interested to come along to this informative, proactive workshop that we ensure will be controversial, interesting and will demonstrate methods never seen before  but will shape the supply chain in years to come.

The session will be on Thursday 11:00 – 12:15

So come along if you want to be part of the way we change the world of returnable packaging!

What will come out of the Automotive Logistics Bonn March 2014?

The purpose of the Automotive Logistics conference this year is to gauge where the automotive logistics industry has improved over the last year and to discuss where the industry is going in the next few years and beyond.

This will be the 12^th annual European conference held by Automotive Logistics Magazine and, like I mentioned above, it will be the same thing in terms of discussing the past, present and future. The obvious differentiation will be the content of the discussions.

After a difficult few years through the economic downturn the conference next week should be packed with exciting news and developments as the signs of growth appear to be flourishing.

During the downturn there have many cost down opportunities that have missed by tier suppliers and OEM’s , this appears to be down to being afraid to decisions. When it comes to returnable packaging solutions, a quick decision sanctioning a trial can prove to be effective in addressing issues you may have with your supply chain.

I would like to encourage better communication from tier suppliers and OEMs, if you have a problem then it is better to solve it now rather than later. This coming week at the conference there will be 350 people from the industry that all have problems and issues. It is a confidential event, so I would encourage people to communicate and then we can get on helping you.

“Exploration of Value” – logistics and the creation of a supply chain have always had value as a top priority. But now the issue has increased in importance due to other elements.

During economic difficulties when car sales plummeted the need to reduce costs was paramount to keep everything ticking over. Now there have been signs that an economic recovery could be in the pipeline, the need to keep those logistical costs down remains high. This looks set to continue as the automotive manufacturers will aim to recoup revenue to plug holes from poor economic performances over the last few years.

On the flipside, there has been an upturn in sales and production with manufacturers aiming to increase their margins, to capitalise on increased revenues and to prepare for what the future may bring.

Then there is the expansion of the global market. Investment in more models, investment in increased production and investment in new plants globally.

This all equates to large quantities of components and parts being required more often and in more locations. All of this heightens the competition and need to invest in logistics and supply chain solutions that provide maximum value for money.

All of these areas are then compounded by the increased expectations of quality by the customer.

Automotive Manufacturers – how are you looking to improve the performance of your supply chain and fulfil all expectations?

These are issues that need addressing at the present time but they will continue for the foreseeable future.

With all of these factors taken into consideration – Now there is No Reason to say No to Returnable Packaging.

All of the various elements of the issues facing the automotive industry and the supply chain can be catered for by using ReturnablePackaging.

I look forward to the discussions that the conference will bring up and delving into why all automotive manufacturers should shift to returnable packaging in order to enhance their business.  

Is Expendable Packaging too expensive?

In a recent article that I was quoted in Duncan Murcott, IPS Lando, claimed that expendable packaging is more than being a cheap solution which is a widely circulated point within the industry.

Duncan states in the article that the benefits include maximising cubic utilisation, minimising damage, minimising re-packing, choosing the right material then reducing production and handling costs.

There are other products on the market that do this, if not better. Ensuring that you are aware of all the information is key.

All of these benefits and efficiency improvements are delivered by the range of Macro Plastics’ products. They deliver on all of those mentioned above to their fullest potential making them a sensible returnable packaging solution.

In the article it states that Macro Plastics provide one-waytrip solutions. We supply the pooling and logistics companies who then offer one-way journeys. This is an additional reduction to the overall cost as the returnable packaging doesn’t require a returned cost.

Expendable packaging is not in line with the industry’s vision towards lean and low-cost. Cardboard does not only add handling procedures inbound as it cannot go straight to the assembly line. It incurs an additional cost & procedure as it is an extra outbound component when it is disposed.

Cardboard cannot go to line side as it creates dust and an unclean environment with the cars powertrain and electronics. So if you ship in expendable you have to ship via a transition warehouse who will unpack the parts from cardboard and into plastic before they go to the assembly line........so no 1TA (one touch assemble) as the parts are being handled twice and risk of damage. One touch assembly helps to reduce the risk associated with safety standards which is an important area. 

Yes, it is all in the design. Designing a product that reduces the carbon footprint, improves quality and efficiency, and reduces costs and the product can be used again. This comes in the form of ReturnablePackaging.

Automotive Logistics Conference, Bonn 2014 – How are you Exploring Value?

The theme of this year’s Automotive Logistics conference in Bonn is the Exploration of Value. As the supply chain industry evolves value is becoming the main focal point.

How do we transport automotive components globally as cheap and effectively as possible? This is the burning question on the manufacturers’ minds.

The global automotive market is growing at a pace; this requires more components being required in more locations more often. Quality, time and cost are the three core objectives. With competition growing all three have to be delivered to a high standard. And these standards will only grow as time goes on.

So my question is – if you are not using returnable packaging how are you exploring value in your supply chain and logistics solutions?

Where are you currently making efficiency and financial savings as well as improving quality at the same time?

Macro Plastics’ ISO Bin is the perfect example of how to explore the value of your supply chain in the automotive industry.

Do you know of an expendable packaging solution that optimises the space in an ISO container to 97.2%? Macro’s ISO bin can be stacked 3 high in a container when full and 8 high when empty. Ensuring that you are able to transport as much as possible for your money is a fine example of ensuring value.

This is only 1 example of exploring value.