Have you ever wondered about the processes that go into delivering your vehicle to you? Rest assured there is a lot that goes on in automotive logistics. You might think that it is as easy and smooth as your usual online purchases, but there is a whole process going on before your car can arrive at its final destination.
Automotive Logistics and Transportation Services
First, let us look into what automotive logistics really is.
The automotive supply chain is composed of all stakeholders. This includes companies and individuals that are relevant to the automotive industry, including international and commercial shipping, storing, and even local delivery professionals.
This whole process involves active mobility of all automotive parts, including components and replacement parts, and final products. Furthermore, the active involvement of organizations such as maintenance and repair providers is also essential in making the whole chain operate successfully. Services of such organizations like Autobedrijf Geesteren play an important role in maintaining the quality of our vehicles. They provide their expertise in making sure that vehicles are in the best condition at all times.
Once you receive the car, there is the maintenance aspect by car service experts. If you’re in the transport industry you will understand why you need professional services. Keeping the vehicles in top running order will be critical.
The automotive industry has long been one of the most profitable industries. So, in 2022, it is expected to even grow bigger as new technology is introduced.
Below are some of the things we can expect from this industry.
Automotive Logistic Forecast
2020 and 2021 experienced major disruptions due to the Covid-19 pandemic. Some companies had to shut down, thereby affecting supply. Social distancing and quarantines made it impossible to continue work as usual. But now, the world is starting to adjust back to normal.
While there may not be a full return to normalcy anytime soon, things are looking up. We can expect interesting trends and solutions to come into play and automotive industry players have a lot to look forward to.
The auto dealer forecasts an increase in demand for transport as operations resume. There is also an opportunity for partnerships with logistics companies. The challenge will come in ensuring timely deliveries and reducing lead times.
But that’s not all. The automobile industry faced a slowdown during the outbreak of the pandemic. There was a disruption in the manufacturing and supply chain of automobiles. Thankfully, 2022 may see the resumption of services. There is great positivity in the sector as players gear up to fill in any gaps.
Autonomous Vehicles to Make an Impact
The interest in autonomous vehicles is not new. But, the focus has largely been on the consumer, rather than the logistics sector. The impact of such cars in the transport sector is gaining interest. Major logistics companies like UPS and DHL are making a foray into determining the viability of autonomous delivery cars. The companies see benefits in terms of higher efficiency and a reduction in operational costs.
Autonomous vehicles can take care of a significant challenge in the supply chain. The American Trucking Association estimates a shortage of about 80,000 truck drivers. The situation is so dire that it could be twice that number by 2030. Lack of drivers means goods do not reach the shelves or customers. It is a great concern that needs addressing. But, therein lies the opportunity to look for sustainable solutions. Autonomous cars may free up the dependence on human labor.
Investor Interest in Innovations Is Increasing
Autonomous trucks are generating significant interest amongst investors. As of 2019, they have injected $11 billion into startups working on autonomous trucks. One such company is Aurora that is on track to go public.
Other startups include Embark Trucks, Plus and Simple, Waymo, and Locomation. And, traditional truck makers and auto parts dealers are not taking chances. They understand the direction the industry is going. That is why many are entering into partnerships with tech companies.
It will be interesting to see whether the industry can have fully self-driving trucks. It might not happen within 2022, but we can expect plenty of reports on pilots or demonstrations from the startups.
Role of the Internet and Artificial Intelligence
Internet-connected vehicles will become more commonplace going forward as connectivity enhances communication. Drivers can get information on road safety, weather, road congestion/condition, accidents, or speed limits.
Remote diagnostics and system updates will be easy with vehicle-to-cloud connectivity. Companies can monitor and get real-time data on vehicle location. Such information increases security and allows for the prediction of arrival times. The Internet of Things (IoT) will impact every step of the supply chain. It will enhance communication between manufacturers and logistics companies.
Artificial intelligence is already part of the automobile manufacturing industry. The applications are numerous including supply chain optimization and vehicle assembly. AI also takes care of mundane, repetitive tasks. The teams can focus on other core areas. These include research, innovation, and design.
Yet, all those functionalities do not uncover the full potential of AI in the automobile industry. The technologies have a significant role to play in predictive monitoring, quality control, and early detection of defects.
AI allows teams to collect data that improves the decision-making process. Logistics companies can use such to make predictions — like best carriers or modes of transportation for maximum reliability and profit. Auto companies can forecast demand by understanding the customer’s purchasing behavior. We predict a future where AI commands a much larger space in the industry.
Overcoming Logistics and Transportation Challenges
As the world moves to 2022, those in the logistics and transport sectors must overcome several challenges. The pandemic has some great lessons to teach, including the need for better preparedness through solid contingency plans.
Creating agile solutions must take center stage as we move closer to the new year. The sector has to look into ways to cut down costs, and quick solutions are available in things like process automation and the use of AI. Data analysis can, for instance, help with route optimization. Real-time data provides road condition information while truckers can take the best routes to ensure they meet deadlines. AI will improve efficiency thus cutting down on production times. All these benefits will trickle down to the end-users.
Innovations like autonomous cars will increase efficiency. They also provide a contingency plan to avoid challenges like driver shortage. Industry players must work together to come up with sustainable solutions.
Technologies like blockchain may provide a solution to fraud cases. Transport and logistic companies can manage inventory better. The technology does not allow for data alteration, without raising a flag.
And, the real-time insights will make it easier for the companies to communicate with customers. Efficient inventory tracking and management will enhance operations all around.
2022 will be a time for recovery for many industries. It is clear that the pandemic will cross over into the New Year. The good news is businesses are stabilizing once again. There will be greater adoption of technologies like IoT, AI, and blockchain. The aim is for higher efficiency at lower costs.
The automobile and transport sector has a lot to look forward to. Autonomous vehicles may hit the streets in a big way. Perhaps the most exciting will be seeing a self-driving truck. With the level of interest amongst startups and investors, it may happen sooner than we can predict.