Automotive industry

Hardly any other industry is under such radical pressure to renew itself these days as the automotive industry. Social change and regulatory intervention are changing the traditional markets and forcing car manufacturers to undergo far-reaching transformations. In order to cope with this change, companies are investing in new business models, from electric drives to car sharing and mobility services. These innovations are generating massive cost pressure, which is being countered with savings programs and measures to increase efficiency.

On closer inspection, four core areas can be identified that have become of central importance for the automotive industry in recent years.

The automotive industry is considered a pioneer in successful process optimization and has advanced intralogistics. By manufacturing according to the principles of "Just in time" (JIT) and "Just in sequence" (JIS), manufacturers minimize stock levels and ensure that components are delivered directly to the assembly lines on demand and in a specified sequence. For many Tier 1 suppliers, the plant is located in close proximity to the original equipment manufacturer's assembly plant. In fact, both plants are often located on the same site, which is why forklifts and order pickers are used to move materials between the assembly lines.

The fundamental change in the automotive industry is exposing many manufacturers to immense cost pressure. Especially the changeover to new drive systems poses enormous problems for car manufacturers. Globally operating manufacturers have embarked on a rigid austerity course in order to reduce running costs, and well-known suppliers are also adapting their structures to the changed market conditions. The realization is gaining ground that logistics and intralogistics can be powerful cost reducers.

Increased throughput reduces costs just as efficiently as safety solutions that prevent damage to materials and people. The possibility of being able to fall back on rented, leased or used industrial trucks if necessary also has a dynamic effect on the cost structure.

The following solution from Linde MH can effectively reduce costs in intralogistics:

The automotive industry is characterized by its innovative strength. This is also true for intralogistic processes. The Kanban method for production control has its origins in the automotive industry just as much as production according to JIT and JIS. In order to optimize their internal logistics, manufacturers have long since turned to automation and modern IT solutions. Internet of Things, Big Data and cloud computing are used in conjunction with automated guided vehicles (AGVs)in the automotive industry to achieve significant efficiency gains in the distribution process through tracking, identification and status monitoring.

Against the background of climate change, social and political developments are putting the automotive industry under immense pressure to change. CO₂ taxes and emissions trading are forcing manufacturers to act. On the one hand, they must increasingly develop alternative forms of drive such as electric and hybrid vehicles, and on the other hand, they must establish climate-neutral supply chains and production processes.

The calculation is now very simple: CO₂ emissions cost money, CO₂ reduction saves money. In addition to raw material extraction and material production, the focus is on in-house intralogistics. If forklifts and warehouse equipment are consistently converted to modern electric drives or fuel cell technology, there is enormous potential for savings. As a pioneer in the fields of electrification, lithium-ion drive and fuel cell technology, Linde Material Handling offers numerous innovative solutions for a better CO₂ balance. Furthermore, the use of HVO fuel in diesel forklifts from Linde MH enables an immediate reduction in CO₂ emissions. HVO stands for Hydrotreated Vegetable Oil and is produced entirely from renewable raw materials such as waste and residual materials, which significantly improves the environmental footprint. In view of stricter regulations for CO₂ emissions, switching to HVO can be a sensible transition technology towards electrification.

In order to establish climate-friendly supply chains, automotive manufacturers are also constantly looking for partner companies that, for their part, manufacture in an environmentally friendly manner and disclose the ecological balance of their own production. In Linde Material Handling, they find a sustainable and transparent partner.