100% of delegates agree that a 24-hour production schedule increases operational risk and strain on the supply chain
Delegates at a recent major automotive conference held in Bonn, Germany , unanimously agreed that increasing to 24-hour vehicle production heightened operational risks. Furthermore, a quarter believed that line stoppages would be an inevitable result of intensified schedules. Emergency logistics is able to reduce the frequency and severity of the potential impact of these risks by easing the transition period and enabling a sustainable production schedule, says emergency logistics specialist Evolution Time Critical.
“Unplanned production line stoppages can cost vehicle manufacturers over 1m pounds an hour, which underlines the financial penalty of not having the means for a robust transition in place,” explains Evolution Time Critical managing director, Brad Brennan. “Perhaps one of the most revealing findings was that three-quarters of delegates believed that the risk of ramping up production schedules could be successfully managed, where premium freight can play a large part in the provision of contingency. 24-hour production removes the supply chain safety buffer provided by assembly downtime, during which maintenance work can be carried out or reserve stocks replenished, but acceptance of the challenges that lie ahead and awareness of the risks involved affords the opportunity to successfully mitigate these issues.”
A number of vehicle manufacturers have recently moved, or have announced plans to move, to a three-shift pattern to meet the increasing demand from a resurgent automotive industry. This heightens the pressure on Tier 1 and 2 suppliers and puts increased strain on the supply chain as it adapts to new schedules. As this industry trend grows, it is crucial that suppliers and OEMs be prepared for fluctuating demand and deviation from previous forecasts.
“It is essential that appropriate solutions are in place to ensure that production schedules are not put at risk. Effective contingency planning and work with emergency logistics specialists such as Evolution Time Critical can help deliver such measures,” says Brennan. “A reliable emergency delivery system is vital to support a supply chain under increasing pressure, to avoid possible delays, and can help vehicle manufacturers work towards optimising production during and post-transition by providing the reassurance of a just-in-time safety net.”
