What large-scale manufacturers can learn from automotive OEMs
21st September 2023
The automotive sector has long been a leader in complex, customisable, and high-volume manufacturing. As a result, many other industries have adopted processes and systems that originated in the automotive sector.
Automotive manufacturing is king of "nimble and flexible" manufacturing
The automotive sector's top success factors—quality, innovation, reliability, performance, and cost—are all related to product excellence. However, underlying this focus on product excellence is the overriding need to be agile. The automotive sector is unlike any other in its need to cope with disruptions, manage transition, and continually optimise its supply chain.
Becoming nimble and flexible means isolating costs and minimising risk
The level and detail of cost analysis in automotive manufacturing is where other manufacturers can take note to either increase profits, become more competitive, or both. This is because there are few products manufactured that have the complexity, customisation, and competition of automotive manufacturing. By collating, sequencing, and pre-assembling components and delivering them to the assembly line, automotive manufacturers can manufacture over 1,000 finished vehicles every day—each one different—and work to a production sequence that is fixed just six days before assembly!
What can you learn from automotive logistics to minimise your manufacturing costs?
There are eight key elements to making a great product, and 50% of them are strongly influenced by logistics. However, if you speak with a manufacturer outside the automotive sector, their views, understanding, and definition of logistics will be very different.
In automotive manufacturing, the logistics operations are clearly defined—they have to be. With vehicles using 1,000’s of different parts in its assembly—and every operation needing to seamlessly integrate because they are timed to the second manufacturing is nimble. It's also highly responsive to changes—with flexibility built into every logistics function, so it can stop and start, operating with highly optimised cost centres.
Could logistics be your strategic advantage?
Order processing, inventory management, optimised transportation, warehousing, materials handling, and packaging—all working within a fully integrated and interdependent supply chain ecosystem. Logistics can spell the difference between success and failure in business. If parts arrive late or wrong enough times, you'll lose the contract.
Yes, conventional logistics can give you a competitive advantage by reducing costs. But it can also help create value for the end customer, helping set you apart from others offering a similar product or service.
Want to perform better through clever decision-making?
Logistics can have a significant effect on the overall performance of an organisation seeking a sustainable competitive advantage. Creating a sustainable competitive advantage comes through developing a value chain framework. Value differentiation can be gained in numerous ways, including technology, being adaptive, greener, stronger, and smarter—and we’re highly experienced in delivering all these outcomes.
Tomorrow's competitive advantage starts today
Logistics-oriented strategies involve decisions that have long-term implications. They provide a competitive advantage that, unlike pricing or other actions, is hard for competitors to duplicate. Rudolph and Hellmann Automotive pioneered adaptive logistics solutions for the UK automotive OEMs and manufacturing supply chain.
What if you took this concept and applied it in your product manufacturing? What if you only carried the overhead for minimum capacity, and paid as you go at an agreed fixed rate when production exceeds this volume?
Could ‘stop-start manufacturing logistics’ work for you?
With access to the best people, best systems, best negotiators—and only pay as and when need them—that is stop-start logistics. We understand people are at the heart of any ‘onsite’ supply chain solution. This is why a flexible labour solution can only be achieved by creating a culture within the workforce based upon respect and personal improvement. Then integrating your core workforce with an ‘on demand’ supply of a managed labour, under the careful supervision of R&HA.
Your expertise is in manufacturing your product. Rudolph and Hellmann Automotive specialise in delivering agile, lean ‘onsite’ supply chain systems and processes.
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.