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.