From supply chain stockpiles to customisation

Automotive Logistics
Dorothy Ashford
Sep. 6, 2024

After adapting to the disruptions caused by Covid while still navigating the transition to battery EVs, the automotive industry faces a new challenge: meeting modern consumer expectations, writes Dorothy Ashford of ITS Logistics.

Consumers now demand same-day delivery, customisation, and the ‘endless aisle’ concept. Manufacturers that fail to meet these expectations risk losing out to competitors who can.

The automotive industry must evolve, and I believe it can draw lessons from other sectors. My career in retail contract logistics from 2001 to 2022 involved helping big-box stores and large brands make step-change enhancements to their supply chains to adapt to shifting consumer demands, driven by the rise of e-commerce. Since 2022, I have shifted my focus to the automotive industry, and I see many parallels between how goods once flowed through the retail sector and how the automotive supply chain operates today.

Retail parallels

Retailers once ordered all product types in bulk based on historical demand, pushing inventory evenly across stores through large distribution centres. However, this model led to stock imbalances: too much inventory in some places, while others faced shortages. It was a slow, inflexible supply chain that often resulted in excess inventory or markdowns, eroding profit margins.

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