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Automotive Flash Dhl Wheels in Motion AUTOMOTIVE FLASH DHL WHEELS IN MOTION DHL Business Unit – Excellence. Simply delivered. DHL Customer Solutions & Innovation De Kleetlaan 1 1831 Diegem Belgium 2 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 3 EDITORIAL ON THE AGENDA… SUSTAINABILITY IS ALL ABOUT WORKING SMARTER Dear Valued Customers, 05 Sustainable Packaging Multimodal In a fast moving world, getting the relevant information is By organizing customer events and conferences around Battery Logistics a constant challenge! The DHL Automotive team is the globe we demonstrate our commitment to local and committed to establish an industry-tailored communication customized offering. aimed at keeping you up to speed with on-going projects and relevant initiatives from a global logistics perspective. DHL Automotive team is willing to learn from local experts and openly create a dialogue, share trends and innovative The automotive sector is a dynamic arena. Effective ideas that may shape tomorrow’s automotive industry. logistics is crucial for volume vehicle assembly that calls for large number of components to arrive on time, in perfect Fathi Tlatli condition, and in the right quantity. But operating to a consistently high standard on a global scale is not enough. President Global Sector Automotive, 09 DHL Customer Solutions & Innovation THE RACE TOWARDS SUSTAINABLE MOBILITY Automotive players are keen to continuously innovate in and DHL Automotive Team their product, market, and manufacturing strategies. eStory White Paper Intense global competition demands that we respond to Urban Logistics market trends and come with new solutions to support Volvo Cars Rolls Out New Innovation customers’ needs. 15 THE CAR’S STAR New Product Launches Business of Recalls Aftermarket Services 4 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 5 In order to support this unprecedented assembly growth, Implemented in 1994, the goal of NAFTA was to eliminate MEXICO, A NEW the whole automotive ecosystem, logistics providers barriers to trade and investment between the USA, included, will have to face important challenges and Canada and Mexico. This agreement has always benefited MAJOR PLAYER IN THE integrate the requirement of new stakeholders. the development of the automotive sector in Mexico to the point that nowadays, Mexico automotive trade Indeed, the premium manufacturers who didn’t take part to balance with the USA is largely positive for both finished AUTOMOTIVE GAME the early wave of investments into Mexico are quickly vehicles and parts. However, while material flows have catching up. Entry of new brands like Audi, BMW and been quickly growing, custom processing capabilities and Infiniti will shift product mix from 4% to 12% share of regulatory frameworks have failed to adapt fast enough premium vehicles. Asian OEMs, including the Japanese ones, transforming the different USA-Mexico road border At times when the global economic outlook remains uncertain especially for countries like have also planned to increase their assembly capacities and crossing in logistics bottlenecks. are actively developing their local supplier networks. Brazil and Russia, Mexico appears as a safe haven for industrial investors and especially for On top of local logistics challenges the automotive the automotive ones. With new plants established serving mostly export industry in Mexico will have to cope with some gaps in markets, an unprecedented new model launch activity supporting processes at the Tier 2 or Tier 3 level. If (already 21 announced by 2020) will put additional Mexico has a very well established Tier 1 supplier base, As the domestic market has grown, along with the pressure on the domestic supply chain that already has to out of which more than 80% are large global companies, economies of other countries in the region, many completely overcome some historical challenges: some lower tier suppliers lack technological know-how companies have been looking at a Mexico as a regional and certain product offerings like body, powertrain and and global export base. Over the last five years, Mexico’s Infrastructure chassis rely heavily on imports of auto parts to meet the light vehicle production has been on a remarkable growth The World Bank’s Logistics Performance Index for 2014 gap in supply. track (8.2% CAGR since 2010) driven by exports to the USA. ranks Mexico 50th out of 160 countries in terms of supply chain efficiency. While many efforts and investments are This impressive performance in a sluggish global and “ YOU CAN ASSEMBLE A made to improve the country infrastructures some nodes regional macro-economic context has been made possible remain challenging. It is for example the case of maritime CAR WITH PARTS MADE by important amounts of FDI. Mexico has already terminals since the country’s four major ports handle 96% benefited from over USD 30 Billion FDI since 2007 from BY TIER 1s IN MEXICO. of Mexicos foreign trade, according to The Seneca Group global automotive OEMs. The country should attract over LLC for the U.S. Trade and Development Agency Safety THE PROBLEM IS NOW 17 additional USD Billion in the years to come thanks to and visibility. government incentives, favorable trade agreements and a GETTING THE COMPONENTS highly skilled yet cost competitive workforce. Service consistency FOR THOSE TIER 1s” Local regulation makes it difficult for international groups According to forecasts the national automotive production to operate their own assets in Mexico whereas local New logistics challenges also arise as Mexican plants is likely to grow by an additional 50% and hit the five companies have difficulties in bringing the scale and traditionally serving NAFTA and South American million units’ milestone by the end of the decade. experience required to support the accelerated growth of markets are looking for new destinations for their TOP 10 & BOTTOM 10 VOLUME GROWTH MARKETS the industry. Efficient 3PL services such as managed outputs. In the 2010-15 term, Mexico’s LV exports to Asia 2015 VS 2022 VARIANCE (THOUSANDS) transportation are and will remain a must in a country grew ~250% whereas exports to Latin America grew by where capacity is more and more difficult to secure. only ~20%. Global forwarding capacity in and out of 9,042 Mexico will most likely have to be quickly increased in Cross Border order feed the local industry in components and serve the world with its products. 8,0% 20.000 2,874 2,959 7,0% In a context where challenges are only shadowed by 6,0% 1,884 1,448 1,340 1,172 15.000 unprecedented prospects DHL Automotive focus for the 798 743 691 429 5,0% 4,0% years to come will be to provide innovative integrated 10.000 3,0% solutions that will support the industry growth and “Over the period 2016-2022 more capacity will be installed in Latin America alone than 2,0% in Western Europe and North America combined. Mexico will account for half of that 5.000 ambitions to become global automotive powerhouse for 1,0% growth” source Autotech Forecasts all major automotive brands. 0 0,0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 AUTO Imports (USD) AUTO Exports (USD) Automotive Share of X-Border Trade 6 AUTOMOTIVE FLASH – DHL WHEELS IN MOTION AUTOMOTIVE FLASH – DHL WHEELS IN MOTION 7 SUSTAINABILITY IS ALL ABOUT WORKING SMARTER WHY IS SUSTAINABILITY A MUST NOT A PLUS? HOW WE’RE WORKING ‘SMARTER’ By 2050, the world population will know how to tackle it. Like other DHL’S OBJECTIVES FOR reach 9.5 billion people and the businesses, DHL Automotive is also CORPORATE AND AUTOMOTIVE NO. 1 SUSTAINABILITY STRATEGIES number of cars on the road is highly concerned about carbon OPTIMIZING EXISTING RESOURCES DHL Automotive aims to address estimated to soar from 800 million emissions and is continuously working and introduce many measures to Step number one is using available resources in a more today to 2.5 billion, which may sound on innovative solutions to combat the create a sustainable environment efficient way. Before investing in new technologies, good for the world economy, but not problem, but the question is: at what for all its customers. According to existing processes should be optimized and streamlined. so much for environment conservation. cost? Companies are heavily investing Manoella Wilbaut, Head of Global According to the World Health in different technologies such as Commercial Developments and The supply chain optimization solutions aim to analyze Organization, around seven million electrification and renewable energies Responsible for DHL Automotive and improve customers’ logistics setups to effectively meet people died due to air pollution in to comply with increasingly strict Sustainability Programs. their requirements and expectations. The Slotting 2012. Environmental concerns are governmental regulations – for A strategy based on five pillars of Optimization Tool (Optislot Tool) provides a set of increasing and governments are example, in 2015 the European Union strength has been implemented methods used to determine the most efficient location for implementing more and more wants an average fleet to reduce and specifically works around the each product within the warehouse in relation to its regulations to prepare for this near carbon emissions to 130g/km and to NO. 2 automotive sector. unique requirements, plus demand, movement and future of 2050. “Everyone is concerned 95g/km by 2021 – but major storage characteristics. Additionally, other systems such as WORKING TOWARDS CLEANER SOLUTIONS and everyone matters“, says Fathi compromises are being made along 1. Fleet management: alternative the Go Green Carbon Dashboard monitors the company’s Tlatli, President Global Sector the way. At DHL Automotive, the fuels and electric vehicles are One of the trends observed in the automotive sector is for current emission flow and associated costs, allowing us to Automotive, DHL Customer Solutions & focus is on approaching the matter of used through specific companies to refocus on their core activity.
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