The most experienced ‘model change’ automotive logistics specialists
28th September 2023
R&HA have been involved in more model changes with more automotive OEMs than any other 3PL.
It's about minimising production downtime
In the automotive industry, it is common for multiple models to be built on a single production line. It's also the norm to for the same models to be completely customised, with each car having different customer specifications. So imagine the complexity involved in just the basic logistics operation supporting an automotive assembly line – then consider all the factors in required in managing a model change or new model launch. R&HA have worked with multiple automotive brands and supported their customers with logistics across a variety of model redesigns, model refreshes, and complexities these activities bring to the assembly process.
Product life cycles in the automotive industry are changing
The automotive industry is experiencing changes in product life cycles, driven by evolving consumer trends and preferences. As consumers change their desires and expectations regarding vehicles, the automotive supply chain must adapt accordingly.
In recent decades, the automotive life cycle has seen a significant acceleration in cycle times. This can be attributed to various factors, including increased global competition, changing regulatory environments, emerging technologies, and the shift towards electrification. Automotive original equipment manufacturers (OEMs) now face the challenge of developing new products at a faster pace.
Spikes in customer demand and available capacity
Aa automotive OEMs utilise advanced technologies and data-driven processes to align their production with customer demand and available capacity - the adoption of 'Stop Start Logistics' within the assembly process has become increasingly essential. This approach enables the flexible scaling of onsite logistics operations at short notice, ensuring predictability in costs.
With our extensive experience and distinctive operational model, we assist our customers in minimising waste, reducing lead times, and enhancing overall efficiency. This approach allows them to effectively capitalise on operational agility and translate it into cost reductions throughout the entire automotive model cycle.
A quick guide to the automotive model cycle
In the automotive industry, vehicles typically undergo major upgrades every four to six years, with minor updates occurring every three years. This time period is known as an "automotive model cycle," corresponding to the generations of a vehicle. A major upgrade, referred to as a "redesign," involves a complete overhaul of the model, including new styling, chassis, suspension, brakes, features, interior, and often a new engine. While the general philosophy of the model remains the same, a redesign aims to present it in a superior and cutting-edge manner.
On the other hand, a "model refresh" occurs every two to three years and involves updating a vehicle to keep up with the latest automotive advancements. This refresh may include updated headlights, new bumpers, fresh wheel designs, new paint colour options, and occasionally, new features and gadgets to enhance the appeal. Model refreshes help manufacturers stay competitive in the market by offering new and updated options to attract and retain customers. Additionally, they allow for the incorporation of the latest technology and safety features, making the models more appealing to consumers and potentially boosting sales and profits for manufacturers.
This continual pressure to develop is probably why automotive manufacturing sets the benchmark for manufacturing excellence.
Back to Insights
Here’s how the 360 onsite logistics audit and assessment works!
Put us to the test, what have you got to lose?
Contact us for a FREE ‘on site' logistics audit – carried out under a non disclosure agreement - our findings will be reported in full confidence and will provide a detailed analysis of where savings and improvements can be made.
There’s only one condition - you must be UK based and be operating in the automotive sector, with a head count of around 25 - 30 or more operating in logistics roles.