Logistics in the “three‐day car” age

Abstract

It is now becoming apparent that the prevalent “stock‐push” approach in the automotive industry of building vehicles against a long‐term forecast and fulfilling the large majority of orders from existing stock is no longer a viable proposition. Pressure from rising stock levels in the market and the discounts needed to sell these vehicles is forcing the vehicle manufacturers to rethink their sourcing strategy in favour of “build‐to‐order” systems. More responsive order fulfilment at vehicle manufacturer level however will have wide implications on the component supply and logistics subsystems. Based on findings of the 3DayCar research programme, this paper aims at assessing whether current logistics systems are capable of supporting such a “build‐to‐order” approach. Based on empirical evidence of benchmarks covering three million annual vehicle movements in the UK vehicle distribution system, key constraints in current vehicle distribution logistics will be established, and the cost and environmental impact of more responsive logistics will be assessed.