Delivering the ‘3-day car’—the strategic implications for automotive logistics operations

It is now becoming apparent that the current ‘stock-push’ vehicle supply in the automotive industry by fulfilling the large majority of orders from existing stock is no longer a viable proposition. Cost pressure from rising stock levels in the market and high discounts needed to sell these vehicles have forced vehicle manufacturers to rethink their order fulfilment strategy in favour of stock-less ‘build-to-order’ systems. More responsive order fulfilment at vehicle manufacturer level however will not only require flexible and responsive component supply and vehicle assembly, but will also have wide ramifications for all logistics operations in the auto supply chain. Based on findings of the 3DayCar research programme, this paper compares the implications on inbound, outbound and sea transportation logistics, leading to the development of a strategic framework for future automotive logistics operations.