We had a great time and the next day I had to recharge before we headed back. We discovered how inconvenient this was with only one charging location in the town. They were also “level two” chargers, which meant we sat for several hours just to get enough miles to make it back to Sante Fe. While this was only a minor setback for us, it opened my eyes to the rapid progression of EVs, and the obstacles the auto industry faces. 

Building a sustainable infrastructure is a huge issue. Add to this the recent legislation and supplier bottlenecks, and no wonder the industry hasn’t been able to meet its net-zero emissions goals.

The 2022 Inflation Reduction Act provided billions in incentives for consumers to buy EVs. This spiked demand and intensified pressure on automotive manufacturers to increase production of EVs to match demand – further creating a scramble to build U.S. factories.

Auto industry suppliers have also been forced to develop and invest in technology and manufacturing necessary to support the rapid growth. Take all of this and then throw in the continuous threat of auto worker strikes. One common challenge OEM manufacturers and other suppliers face is the movement of parts and equipment. This calls for a reliable expedite transportation partner. 

Let’s look at the bigger picture

The global automotive market is predicted to grow from 2022 to 2030 at a substantial growth rate of around 6.9%. A recent report predicts the market to acquire a worth of nearly USD 6,070.4 billion by the end of 2030. The automotive market was valued at USD 3,296.8 billion in 2022. The same research projects the electric vehicle market industry to reach $823.75 billion in 2030, with a compound annual growth rate of 18.2%. This has automakers scratching their heads as they navigate EVs, hybrids, and traditional gas-powered vehicles. 

Key factors these companies continue to struggle with are lingering supply chain delays, semiconductor shortages, increased government regulations, sustainability pledges, high fuel costs, driver shortages, constraints from political unrest, and a continually booming ecommerce environment.

Topping the list are the necessary investments in infrastructure and the necessary logistics of moving parts and equipment. That’s where expedited shipping comes in. 

While “expedited” is often equated with “expensive,” that basic connection misses the bigger picture. Looking at the obvious and hidden benefits of expedited, as well as the opportunity costs associated with leaving expedited out of a transportation plan, makes clear the advantages that lie in properly executing an expedited transportation strategy. 

5 Key Questions Companies Should Ask: 

1. What other costs can companies avoid by using expedited? 
2. What is the cost of haphazard “emergency” shipments? 
3. What is the cost of overstocked inventories? 
4. What is the cost of using unreliable or inexperienced shipping companies?
5. What can a strategy look like? Whether you’re looking to add expedited to your transportation plan or elevate the way you currently handle it – which is most likely a cobbled-together approach instead of a cohesive strategy. 

Seamless integration is key and there are three ways to get there painlessly:

1. Evaluate your less-than-truckload (LTL) and truckload (TL) shipments 

Sometimes, a shipment may appear to be too small for TL, when it really is too large for LTL. As a result, you may be hit with unexpected charges from your carriers, who turn an LTL shipment into a TL shipment without your knowledge. Similarly, you may be sending things via TL where expedited would be a better, safer fit.

In both instances, update your routing guide so these in-between shipments go expedited, ensuring that you can tailor the equipment to the size of the shipment.

2. Who handles your expedited decisions? Does that need to change? 

All too frequently, expedited shipments are made at the discretion of the load planner, plant manager, customer service rep, or sales leader at a manufacturing facility. Most of the time, it’s not a strategic decision, but one that is done piece-meal using the company’s standard pool of carriers.

The person handling the load shouldn’t be the one making these decisions. Instead, there should be a standard operating process, using a corporate-approved expedited company, that is clearly communicated to relevant personnel. This selection should be made at the executive level, by the head of procurement or supply chain or even a company’s CFO.

3. Choose your provider wisely 

Don’t make the mistake of assuming that every carrier knows how to manage expedited shipments. Many reputable carriers that do a fine job with TL and LTL shipments have limited expedited experience. Look for a specialized provider that offers the following:

• Expertise. With an expedited-only company, everyone is a subject-matter expert. Don’t be fooled by general carriers or new entrants to the expedited business without the background to meet service expectations.
• Strong communication. The ability to convey information effectively to all parties throughout the expedited process is crucial.
• The right balance of technology and human interaction. It takes both to properly execute all phases of your shipment.
• Ability to handle niche shipments. Expedited loads are unpredictable. Make sure your provider knows what to do. 

I predict a roller coaster year ahead for EVs. The pressures of balancing cost alongside mass production, building out infrastructure, mapping accessible charging stations, procuring mass quantities of materials, particularly for batteries, all while meeting demand and participating in the race to net-zero emissions is a tall order.

Having the right expedite partner and a carefully thought out plan will make the process that much easier and support rapid growth over the next few years and beyond.

Bumps in the Road

Unfortunately, most suppliers and automakers have not deployed smart supply chains. A recent Capgemini report finds that just 53% of auto suppliers and OEMs have mature intelligent supply chains.

Suppliers and OEMs must consider numerous factors as they scale intelligent supply chains:

•  Raw material and resource scarcity. Suppliers and OEMs are still dealing with raw material and resource scarcity—low supplies of rare earth minerals, the ongoing semiconductor shortage—which in turn has added yet another fire for auto leaders to put out while simultaneously attempting to rearchitect their supply chains.

•  Transition from offshoring to nearshoring and reshoring. Suppliers and automakers are wisely learning from their mistakes during the pandemic and bringing operations closer to home. The same Capgemini study finds that offshore locations have fallen 22% in the past two years.

In the long run, moving facilities—particularly procurement functions—closer to a centralized base will enable more resilient supply chains. However, in the short term, this will present some challenges as it’s no easy feat moving halfway around the world.

•  Unattainable stock levels. Despite a two-year inventory shortage, OEMs are arguably sitting on too much inventory. Some leaders may be scarred by the lack of production, and therefore sales, during the pandemic, so they are practically stockpiling inventory to ensure manufacturing operations can continue. However, this places financial burden on suppliers sitting on more stock than normal. What’s more, there is now concern this influx of inventory will lead to oversupply and may cause car prices to decline as a result.

•  Lack of circularity. With so many procurement issues and consumers’ growing expectation for sustainable business practices, suppliers and auto manufacturers would be wise to implement circular supply chain processes into their overarching intelligent supply chains.

While 73% of automotive executives agree that participation in the circular economy is necessary to achieve long-term financial and competitive goals, only 53% followed a circular economy strategy in 2022. That’s slightly understandable considering there is currently not enough recycled material suppliers, or even an adequate supply of recycled auto materials, to help OEMs manage circular supply chains.

•  Deteriorating supplier-OEM relations. Auto suppliers and automakers have had a notoriously complex dynamic, but the pandemic furthered strained relations and workflows. From the supplier side, there is uncertainty in OEMs’ manufacturing and inventory data and a general consensus that automakers overorder. OEMs mistrust suppliers’ sustainability data and generally demand more accurate forecasts of their supplies and timelines.

The key to resilience is making supply chains more intelligent and sustainable. Suppliers and OEMs cannot just invest in technology without a plan, nor can they uproot supply chain facilities and functions around the world. They need a transformation strategy that addresses workforce management, digital deployments, partnerships, and circularity.

Tactics to Consider

Here are just a few tactics all suppliers and auto manufacturers should consider to future-proof supply chains:

•  Increase investments in data strategy and data-driven capabilities. Data is the cornerstone of smart supply chains. Companies need data to inform a variety of digital technologies, track business outcomes, and measure carbon emissions. That is why the quality and quantity of auto organizations’ data is key.

Enterprises need more real-time data across their supply chains, business functions, and third-party partners. Once this data is acquired, suppliers and OEMs must improve their data platform capabilities as well as data integration using analytics tools. Leaders should consider using AI to not only gather more data, but also enhance predictions.

•  Adopt inventory optimization technology. Inventory optimization is essential to remain competitive in today’s crowded auto market. Utilize predictive analytics and machine learning to improve demand forecasting and anticipate disruptions.

Digital twins can also help to predict issues and, beyond inventory optimization, can aid in developing and deploying intelligent supply chains before operations begin by simulating physical environments and equipment and real-world scenarios.

•  Prepare the workforce for the future. Auto leaders cannot forget their people are key to their success. As digital transformation agendas progress and companies adjust to more EV-centric business models, leaders will need to ensure their people have the necessary skills to play an active role in the enterprise’s evolution. This means identifying new roles made possible by technological advancements and upskilling or reskilling workers according to the organization’s needs and digital maturity.

•  Develop new supplier-OEM relations policies. Auto suppliers and automakers have had strained relationships for years. The breakdown in trust and communication can be traced to a lack of transparency.

OEMs should clearly state their expected contingency provisions from suppliers once both parties share their forecasting frameworks and findings. Regular touchpoints should be scheduled for an agreed-upon cadence.

Prior to this, companies should outline expectations and agendas to ensure all the information they will need will be clearly communicated. Issues may still arise, which is why leaders from partner organizations should outline processes to review and resolve concerns at the onset of their contractual agreements.

•  Integrate circularity practices into overarching intelligent supply chain strategies. With enterprises so focused on procuring materials, manufacturing auto parts and vehicles, and transporting products, it can be easy for suppliers and OEMs to forget about the reverse flow.

Circular supply chains allow for parts and products to be sent back to companies so they can repair, resell, reuse, or recycle these goods. Bringing goods back across the supply chain requires new processes, investment in labor, transportation, and certain manufacturing equipment, recycled material suppliers, and consumer buy-in to increase the supply of materials.

Once auto suppliers and manufacturers implement these tactics and eventually scale intelligent supply chains, they can future-proof their businesses after three years of unprecedented disruptions. These solutions and management strategies will streamline operations, optimize inventory, improve production rates, and predict and help mitigate issues. This will lead to reduced costs, faster time to market, and potentially more sales.

Beyond financial and operational benefits, auto enterprises can reduce emissions and overall carbon footprints thanks to intelligent supply chains. With enhanced planning, procurement, production, and transportation throughout various touchpoints, digitally enabled supply chains produce less waste, consume less electricity and water, and burn less fossil fuels.

Resilient auto supply chains also spur enhanced customer experience and loyalty. Automotive consumers can now get cars and parts in a reasonable time and receive real-time order updates. And environmentally conscious consumers will be drawn to brands that showcase their sustainable supply chain practices and include customers in circular supply chain initiatives.

More Work to be Done

Just because the pandemic has ended does not mean that supply chain issues have subsided for automotive suppliers and OEMs. Although leaders are aware of the ongoing post-pandemic supply chain issues and the important role digital solutions play in mitigating such challenges, there is still much work to be done before the global automotive industry has fully scaled resilient, connected, intelligent supply chains.

The current approach of building additional working capital and inventory is not sustainable. The best solution to achieve long-term resilience is with trust, transparency, and data-driven intelligence across each layer of supply chain.

With an oversupply of products likely to cut prices, material scarcity, geopolitical conflicts and trade regulations, and pressure to decarbonize, the time is now for suppliers and automakers to future-proof their supply chains and stake their claim in the market.

Implementing strategy shifts, whether it’s something as substantial as nearshoring part or all of your supply chain, or shifting freight across modes, is not always an easy road. Before taking action, you should first evaluate if the effort and time is worth the reward.

Analyzing the risks and rewards

Nearshoring gained popularity in 2018 when Section 301 tariffs between the United States and China were introduced, but most companies didn’t act on the tactic. At that time, for many, the risk and time wasn’t worth it.

Now, that tune has changed, especially in the automotive space with three large automotive players, including Tesla and BMW, announcing they are moving or growing their plants in North America, primarily Mexico due to its proximity to the United States, trade agreements with multiple countries, and current manufacturing infrastructure.

Even with incentives to nearshore in Mexico and other countries, you should first analyze the cost factor.

Although you may be closer to your end consumer, consider how your storage needs and transportation costs will differ. For example, a shorter transit time doesn’t guarantee lower transportation costs, especially since ocean rates have decreased compared to previous years.

However, the trade benefits—such as avoiding Section 301 duties if you import from China—may outweigh potential added transportation and storage costs.

Understanding what it takes to relocate a production line, the new country’s trade and transportation laws and restrictions, and how much of the supply chain you will nearshore are all factors to assess before moving forward.

In automotive, most companies opt to move a piece of the supply chain to further diversify and mitigate risk.

With many automotive companies exceeding their shipping budgets as high as 200% in 2022, saving on shipping costs is a top priority but not at the cost of decreasing flexibility, which is key to lessen delays during market disruptions.

However, the shifts to take advantage of savings could invite some risk. For example, if you’ve never utilized less-than-container (LCL) shipping before, shifting half of your current full-container freight to LCL can invite savings, but also uncertainty. Working with a logistics expert with a track record for these services helps reduce the risk of delays.

Whether you want to nearshore, introduce more flexibility into your supply chain, or use other tactics, technology and analytics are useful to evaluate the risks and rewards specific to your supply chain.

A sourcing analysis report is a good first step to understand if reshoring or nearshoring is a strategy to consider. The report helps you see where else your commodity is being sourced, if alternative sourcing locations offer trade agreements, and if adjusting can help reduce landed costs.

Other technologies like freight lane analytics tools can analyze lanes through comparative pricing, volume and service to uncover the best way to buy freight to help cut costs.

As supply chains continue to become more complex, diversification will remain vital. The supply chain evolution across the automotive industry is a great example of how companies can diminish risk and reap rewards with strategic planning. n

Automotive Industry Steers Toward the Future

As the freight forwarding market grows, here’s how the automotive sector is evolving, according to Thomasnet.

1. More reshoring and nearshoring. To mitigate supply chain disruptions and the inflationary impact on the cost of goods, many automotive manufacturers are looking to bring production operations back to the United States or closer to their customers.

2. Investing in data analytics. Respondents to a 2022 Deloitte transport industry report say that adopting a more robust approach to data management is increasingly critical. To achieve this improved transparency, many automotive companies are leveraging the expertise of startups and cloud services providers rather than hiring in-house data scientists.

3. A rise in electric vehicles (EVs) and autonomous vehicles (AVs). Players in the automotive industry are investing in EVs and AVs to manage costs, drive sustainability, address driver shortages, gain real-time insights, and improve brand reputation.

4. Cross-company collaboration. Automotive organizations are implementing products and technologies to transform day-to-day operations. For example, the Internet of Things enables real-time monitoring of inventory and shipments, machine learning helps with route optimization, and blockchain improves transparency for the end customer.

To reap the full benefits of these technologies, organizations must share things like shipping schedules or warehouse space with competitors more readily than in the past.

Winging It

Flying cars were a staple of The Jetsons cartoons, but are they practical in the real world?

The multi-billion-dollar industry needed to make flying cars a reality has massive potential to solve societal problems and develop a new revenue stream for the United States and other economies, finds new research published in Manufacturing & Service Operations Management, an INFORMS journal.

Researchers say it’s one thing to have vehicles capable of “Urban Aerial Mobility (UAM),” and quite another to make the societal changes needed for normal use of UAMs.

“Technologies already exist to build and fly the kinds of vehicles that could ferry people throughout urban areas as part of a normal routine,” says Vikrant Vaze, a professor in the Thayer School of Engineering at Dartmouth, which conducted the survey along with MIT and Tsinghua University.

“But the big challenges center on conceiving and creating the kind of transportation infrastructure, systems, and protocols that would enable the safe and smooth transition to urban aerial mobility,” he adds.

The study points to cities, operators, and agencies—such as New Zealand, Singapore, NASA, and several airlines—that are already investing heavily in UAM to develop electric vertical-takeoff-and-landing vehicles (eVTOL) or flying cars, UAM systems, and networks.

“We will need to establish flying lanes and ‘roads’ not far different from today’s transportation systems built around paved roads on land, ocean shipping lanes, or air corridors,” says Vaze.

Rolls-Royce EV Hits it Rich

All-electric vehicles (EVs) represent a relatively small share of the overall car market. Concerns over battery ranges and relatively high prices continue to limit their broader appeal.

Electric vehicle prices, however, likely don’t matter much to buyers who inundated Rolls-Royce with orders for its debut EV, which comes with a $400,000 price tag.

The British car company unveiled a prototype of the vehicle in summer 2022, and production is set to get underway this year.
The Spectre (pictured) seats four and can travel 260 miles on a charge. It can go from zero to 60 in 4.4 seconds with 577 horsepower and 664 foot-pounds of torque.

Rolls-Royce plans to phase out its internal-combustion vehicles this decade and transition to entirely electric vehicles by 2030. Initial demand for the Spectre could force the company to alter its production plans in order to meet it, according to company executives.

GM Shifts to Chatbots

ChatGPT is “going to be in everything,” says Scott Miller, vice president of General Motors.

To that end, the automaker is reportedly working on a new virtual assistant for its vehicles powered by advanced artificial intelligence (AI) technology. GM could implement chatbot-type technologies into its cars in coming years under an existing partnership with Microsoft, according to Reuters.

GM’s virtual assistant research features the same AI models as ChatGPT, reports Semafor. An advanced virtual assistant could quickly provide answers ordinarily found in vehicle owners’ manuals or help drivers with routine tasks, such as checking their schedules or opening garage doors.

Tire Pressure

As part of a broader initiative to accelerate the use of sustainable technologies in the NTT Indycar Series, tire maker Bridgestone developed Firestone Firehawk race tires made with guayule natural rubber grown and extracted at the company’s guayule R&D facilities in Arizona. The company debuted the tires during the Indy 500 Pit Stop Challenge on May 27, 2023.

Bridgestone aims to commercialize the use of sustainable guayule natural rubber in tires by 2030, creating a promising new domestic industry.

• Guayule is a heat-tolerant, woody shrub that thrives in America’s desert southwest.
• The shrub can be farmed with existing row crop equipment, saving costs for farmers.
• Guayule creates up to 10 new industrial processing jobs per 1,000 acres of harvested crop.
• Guayule rubber has the potential to have a lasting economic impact, Bridgestone says, while reducing the energy and other environmental impacts associated with the transportation of rubber sourced overseas.

Made-to-order has become the fundamental aspect for consumers when buying cars. This demand has been responsible for increasing customization types and components.

With cars’ long lifespans, spare parts supply is crucial for after-sales services, which sets customer satisfaction. Certain German auto manufacturers supply original spare parts for discontinued car models that are well over 30 years old.

Manufacturing automation and industrial computing have become critical throughout the automotive supply chain, from allocating and storing raw materials and components to production and delivery and to timely spare parts procurement.

Smart Optimized Production Logistics

The complexity and variety of automotive parts and components have caused issues in production and management. The challenge is to deliver the correct individual parts to each workstation in the production line and assemble cars in a carefully designed sequence.

An automotive manufacturer has implemented smart factory solutions and launched an extensive project to improve its spare parts logistics. An SAP-based after-sales parts project has been implemented at warehouse locations in various countries since 2013, improving parts availability throughout the network, reducing operational costs and inventory levels, and increasing productivity. All of this has contributed to enhancing manufacturing and operational management efficiency.

Indeed, implementing smart factory solutions ensures standardization and integration of the spare parts logistics process throughout the supply chain.

It fosters a complete supply process from car dealers’ orders to payment; strengthens forecasting and planning of future spare parts demand; connects all partners to the spare parts logistics system; and bolsters warehouse management of incoming and outgoing goods, including stock transfer and annual stocktaking.

High-Performance, Durable Computing Solutions

Automotive manufacturing is a very demanding environment for computing hardware. The computing terminals are exposed to substances that are harmful to electronic devices. One example is carbon, a material that is growing more and more popular in automobile design. Carbon dust is highly electrically conducting and prone to cause short circuits if settling on a CPU. Therefore, it is vital to implement smart factory solutions such as vehicle-mounted terminals and all-in-one touch computers.

Some parts of the factory cannot be reached by the autonomous driving tugger trains (e.g., narrow areas or areas restricted for safety reasons), thus requiring manual operations by staff. A rugged terminal is used to build a hybrid automated guided vehicle (AGV) solution, integrated into an autonomous tugger train as a control and fallback solution for navigation.

This terminal must withstand harsh environments and be water, dust-resistant, shock and vibration-resistant, impact-tolerant, and have abrasion-resistant touchscreen displays. These features will ensure that spare parts and components are delivered to the production line on time and in the proper sequence.

Providing Comprehensive Services

Advantech uses various service resources to provide comprehensive local services to its customers in the automotive industry. Advantech’s complete global services and smart factory solutions are helping automotive manufacturers worldwide realize the goals of lowering operational costs and improving management and efficiency.

Tire Market Keeps Rolling

At a time when the automotive aftermarket economy—like everything else—is on shaky ground, tire manufacturers feel as if their road may be a little smoother than others. The tire sector is predicted to fare pretty well, according to recent 2023 market analysis from Tire Review magazine.

Federal Reserve data shows U.S. industrial production of tires climbed 3.5 points in August 2022 from a month earlier, and was also up 4.2% over August 2021 levels. This increase in domestic tire production volume indicates that supply chains are being freed from historic bottlenecks, giving manufacturers an opportunity to supply tires for inventory, the analysis shows.

Three key automotive indications fuel this positive outlook for the tire sector:

1. Gas prices are coming down. The four-week moving average of gas prices was down to $3.71 a gallon at the end of September 2022, according to data from the U.S. Energy Information Administration. While still up 17% from the same time last year, the trend is a favorable one.

2. Truck tonnage is increasing. The Truck Tonnage Index, which measures the gross tonnage of freight transported by truckers in the United States for a given month, was up sharply in June 2022, with a one-month gain of 2.9%, and a year-over-year change up 8%, according to the U.S. Department of Transportation and the American Trucking Associations. These kinds of strong increases in trucking activity help to support future heavy-duty tire sales and service.

3. Retail sales have remained strong. Retail sales at auto parts, accessories, and tire stores remained strong in July, according to Census Bureaus data. Sales were up 0.3% from the month earlier, and up a more substantial 11.1% compared to July 2021.

Unlocking Efficiency for Reconditioned Vehicle Dealers

A picture may be worth 1,000 words, but photos may also help sell 1,000 vehicles.

In today’s fast-paced market, auto dealers selling reconditioned vehicles need to load photos on their website’s vehicle detail pages as quickly as possible, so they can boost clicks and leads. Streamlining photography and merchandising of vehicles is crucial for dealers.

A new partnership helps dealers unlock efficiencies in this area. Dealer Image Pro, a professional photo, video, and interactive software provider for automotive dealerships, recently integrated its Photo Assistant and Autoport software with reconditioning workflow software from Rapid Recon to improve time to market for reconditioned vehicles.

With the Rapid Recon status of their used vehicles displayed within the Photo Assistant and Autoport inventory dashboard, dealership sales teams can quickly identify the stage of the reconditioning process for a specific vehicle—and whether it is ready to be photographed.

Once photos are ready, Dealer Image Pro provides inventory photo feeds directly to Rapid Recon, which makes it easier for dealership staff to verify that the photos have been published on the website.

Right to Repair Act: The Right Move for the Automotive Aftermarket?

A new bill, H.R. 6570, known as the Right to Equitable and Professional Auto Industry Repair, or REPAIR Act, has the automotive aftermarket industry buzzing.

Introduced into the House by Rep. Bobby Rush (D-Illinois) earlier in 2022, it centers around how making vehicle data available will spur greater competition in the aftermarket repair segment.

Here’s a quick breakdown of the bill:

Overview: The bill will ensure that owners and independent shops have access to necessary vehicle repair and maintenance tools and data. It requires automobile manufacturers to provide the same information to independent repair shops as they do for dealer shops. This includes all tools and equipment, wireless transmission of repair and diagnostic data, and access to onboard diagnostic and telematics systems needed to repair a vehicle.

Supporters: Proponents of the bill include The Automotive Aftermarket Suppliers Association, Auto Care Association, Consumer Access to Repair Coalition, and Specialty Equipment Market Association.

Status: In February 2022, the Committee on Energy and Commerce referred the bill to the Subcommittee on Consumer Protection and Commerce. In June 2022, New York became the first state in the country to pass its own Right to Repair Act.

Global Auto Performance Parts Market on the Rise

High expectations surround demand for automotive performance parts going forward, according to a recent report from Future Market Insights, which says the market is likely to reach nearly $340 million by the end of 2022—and skyrocket to $532 million by 2032. The report cites escalating demand for passenger cars and a rise in disposable income across the globe as the driving factors.

Here are some key takeaways from the report:

• The automotive performance parts market in the United States will account for 87% of the market share in North America.
• Sales of shock absorbers will grow at 4.6%.
• Sales of torque converters will hit a 5.8% compound annual growth rate (CAGR).
• The air filters segment will grow at a CAGR of 4.2%.
• Asia Pacific is projected to lead the global automotive performance parts market by 2032.

The Trendiest Aftermarket Vehicles

Which vehicles are the top trend-setters for the automotive aftermarket? Exhibitors at the recent Specialty Equipment Market Association (SEMA) show voted for the vehicles that represent the best business opportunities for the aftermarket.

SEMA Award finalists represent exhibiting automakers that support the aftermarket with accessory-friendly models based on their potential for customization.

The finalists are:

SEMA Car of the Year
Nissan Z
Dodge Challenger

SEMA Mid-Size Truck of the Year
Jeep Gladiator
Toyota Tacoma

SEMA Full-Size Truck of the Year
Ram
Toyota Tundra

SEMA 4×4/SUV of the Year
Jeep Wrangler
Toyota 4Runner

SEMA Sport Compact of the Year
Toyota GR86
Volkswagen Golf GTI

SEMA Electric Vehicle of the Year
Nissan Ariya
Volkswagen ID.4

**Many of today’s automakers are switching back to vertically integrated supply chains for greater control and resilience. Learn more about the strategy here.

Autonomous vehicles could reshape the trucking industry, presenting a solution to improve safety and can be a freight mobility multiplier to support supply chain efficiency and reliability. But a patchwork of state laws creates a hindrance to implementing emerging technology.

Currently the United States has no federal guidelines for how autonomous trucking vehicles should operate. In the absence of uniform standards, the trucking industry should unite to encourage states to act jointly to create consistent regulations for the implementation of new technology.

In sports, a football team knows, regardless of where they play, that the field dimensions and game rules are the same, but that is not true for the trucking industry. It’s as if Soldier Field in Chicago was twice as long as the field at SoFi Stadium in Los Angeles. That discrepancy would invite chaos.

With the absence of consistency, the freight technology playing field can be an operational quagmire. The trucking industry should speak as one voice to advocate for both federal and state uniform regulations.

The State of Autonomous Operations

Technology to support autonomous operations of trucks is now a reality, with testing and pilot projects ongoing. These advancements could revolutionize the trucking industry through improved safety, better fuel mileage and increased productivity. At a time when the industry is grappling with a severe lack of drivers, this edge could be a game-changer.

However, liability issues loom large in the path to implementation. Rising insurance costs already plague the industry, and increased technology and equipment costs are furthering the hike.

This issue is potentially exacerbated by state legislatures, each with well-intentioned regulatory actions. This game plan may likely manifest into a patchwork of de-harmonized requirements that render interstate freight movement challenging.

For example, one state may allow trucks with autonomous technology to operate at Level 5 (full automation without a driver in the cab) while an adjacent state may allow Level 4 (high automation but requires a driver to be in the driver’s seat). A truck that is crossing a state line may need to adjust its technology automation level to comply with respective state regulations.

Incongruent regulations will stifle carriers trying to adopt new technologies. Standardized regulations would create a common playing field and provide certainty to the trucking industry, which would be a catalyst to broader adoption of technologies—and their benefits.

What does it Mean?

So far, the private sector’s appetite to implement technology for autonomous operation is moving faster than government entities’ reactions to implement safety regulations. As legislation moves forward, the trucking industry should unite in its efforts to proactively communicate the benefits, lead discussions, and help guide federal and state regulatory actions.

The trucking industry must be in the driver’s seat to steer the implementation of autonomous technology down the regulatory roadway. This technology can improve and solve safety and carrier operating costs, reduce the need for truck parking, and improve air quality in conjunction with alternative fuels. Interstate commerce is highly important, and technology—including autonomous vehicles—can be the catalyst to provide reliability and safety to industrial supply chains.

The transportation technology game has moved into the red zone but must get to the end zone to be effective. There is strong momentum, and soon it will be first and goal. We can all win if we establish one set of rules for everyone.

Responsibilities: Sourcing, including partnering with merchandising to expand product assortments; working with the inventory planning and forecasting team to execute the company’s buy plan; collaborating with CarParts.com’s logistics partners and distribution center teams to deliver goods and ensure trade compliance.

Experience: Senior director of purchasing, director of purchasing, product manager, assistant product manager, and buyer/inventory planner, all with CarParts.com.

Education: MBA, UCLA Anderson School of Management; B.A., International Relations and Affairs, National Chengchi University, Taiwan.

After I earned my bachelor’s degree in Taiwan, I met a purchasing director with CarParts.com at a social event. She asked if I wanted to join her.

My education at that point had been in international relations, with a minor in business administration. My goal had been to become a diplomat, learn more languages—I speak Mandarin, Taiwanese and English—and then explore the world.

Although I didn’t know much about auto parts or importing or exporting, the purchasing director gave me an opportunity and, along with other mentors, helped me learn. I started as an entry-level buyer working with vendors to ensure inventory was in stock.

As an immigrant from Taiwan, I’ve learned that coming from a different culture and knowing how to build relationships with business leaders from varying backgrounds is one benefit I can leverage in my role. We are a global community.

My job now is to ensure the products we offer are ones I’d put on my own car. That means visiting factories to make sure the products are legitimate and of quality.

One approach that has helped me along the way, with both internal management and vendors, is really listening to other peoples’ feedback.
As a buyer, I could take the path that the vendor or seller has to listen to me. However, I want to hear the other party’s concerns. This strategy has helped me form tight relationships with my vendors. They enjoy working together because they know their challenges are being heard. And we can work together to solve those challenges.

Plus, the relationships we’ve built have helped ensure access to inventory. Right now, inventory is king.

One of my proudest accomplishments has been working closely with the new management team at CarParts.com to transform our company, which was previously in financial distress. We really had to figure out how to turn the company in the right direction. A big part of that was trying to rebuild vendors’ trust in our new team and direction and persuading them to work with us. We’ve been able to do that and have produced nine consecutive quarters of growth.

As a female executive, balancing work and home can be challenging. I don’t have a great strategy, but once I’m home, I try to put my phone down and focus. Then once my kids are in bed, my third shift starts, when I call overseas vendors.

One attribute that’s critical in supply chain and logistics is the ability to address the curveballs thrown at you day-to-day. For instance, several years ago, I received notice that a container was dropped incorrectly, so it tilted toward the other containers on the truck, just as a storm was forecast. Once I knew about the situation, I dropped everything to quickly connect with the driver and make sure he could return to the distribution center to fix it.
One reason I enjoy the supply chain field is that there’s always something new and challenging. It never gets boring.

Sherry Liu Answers the Big Questions

1. If you could speed the development of one supply chain-disrupting technology, what would it be and why?

Especially in logistics, we try to bring visibility. Even with artificial intelligence prediction models, no one can really pinpoint when a container will be in and unloaded. If I had a magic wand, I’d bring end-to-end visibility and accuracy.

2. What are your words to live by?

A mentor shared with me the key to being the kind of leader your team wants to follow: as you progress and gain more responsibility, there will always be times you’ll make mistakes. As a leader, when things go wrong, you take responsibility. You can discuss the problem with your team members, but you’re accountable. But when things go well, it’s your team that gets the credit.

3. If you could be granted one magic power, what would it be?

I would get 48 hours into each day.

Cloud Fleet Routing API focuses on the route planning phase of delivery and allows operators to perform advanced fleet-wide optimization, enabling them to determine the allocation of packages to delivery vans and the sequencing of the delivery tasks. Natively integrated with Google Maps routes data, Cloud Fleet Routing API can solve simple route planning requests in near real time, and scale to demanding workloads with parallelized request batching.

Across this spectrum, customers can specify a variety of constraints, such as time windows, package weights, and vehicle capacities. Cloud Fleet Routing can help carriers meet sustainability targets by reducing distance traveled, number of delivery vans, and CO2 output from computing.

Last Mile Fleet Solution focuses on delivery execution and allows fleet operators to optimize across every stage of the last-mile delivery journey, from e-commerce order to doorstep delivery. The solution also helps businesses create exceptional delivery experiences for consumers and provides drivers the tools they need to perform at their best. It builds on the On-demand Rides & Deliveries mobility solution from Google Maps Platform, which leading ride-hailing and on-demand delivery operators use around the world.

American Kenda Rubber manufactures automotive, bicycle, powersport, trailer, and wheelchair tires in Asia. Seventy-five containers of automotive tires were en route from Taiwan when the company learned that the U.S. government was imposing elevated duties (anti-dumping duties). Kenda needed to find a provider of warehousing services in a facility designated as general-purpose Foreign Trade Zone (FTZ) located near their Columbus, Ohio warehouse quickly, to avoid the unanticipated costs.

But the logistical challenge was only just beginning, and Evans Distribution Systems’ solution would go far beyond the FTZ. Tires already en route to both East and West Coast ports needed to be intercepted before entering U.S. Customs and rerouted to the Detroit ramp for entry into Evans’ Foreign Trade Zone. Port congestion, backlogs, and bottlenecks meant containers were arriving at different times and different locations, adding further complexity to the already complicated international logistics challenge.

The government imposed a restrictive timeline during which the tires could be released from the FTZ into U.S. commerce duty-free. The documentation needed to be 100% accurate and the timing had to be precise to clear the tires and release them from the FTZ within the designated window to avoid the additional taxes.

The Solution

Evans’ transportation team went into high gear to redirect 75 containers to Detroit all while maintaining the documentation. Upon arrival at the warehouse, Evans increased staffing resources to ensure containers were unloaded, inspected for damage, and inventoried by SKU. The inventory list had to be error-free otherwise FTZ status would be jeopardized.

A second shipment of 57 containers arrived a few months later. Evans arranged the drayage from the ramp to the warehouse. Once received at the warehouse, the containers were unloaded by the Evans team in the FTZ after which Evans arranged for the return of the empty containers.

Next, Evans helped Kenda prepare for the tires’ release from the zone. U.S. Customs determines a specific time period when goods can be released from the zone known as the Gap Period. To prepare, Evans reviewed timing on previous clearances and ran test clearances to understand how long the government would need to process the paperwork. A week before the window opened, they had a final run-through of the physical and electronic elements for the FTZ exit. In the end, all 132 containers were released in two weeks and successfully avoided the anti-dumping duties.

Evans’ Progressive Distribution Centers, Inc. division implemented the Foreign Trade Zone warehousing solution while its Evans Logistics Inc. brokerage division arranged carriers for the outbound loads and scheduled pick-up and delivery appointments at Kenda’s customer locations throughout the United States.

All in all, the Evans team helped Kenda reach their key goals. Kenda utilized an FTZ warehouse to legally avoid elevated duties. And they ensured their tires arrived at their customer locations on a restrictive timeline, damage-free, and at the least amount of cost to Kenda.

To learn more:
email: sales@evansdist.com
phone: 800-OK-EVANS
web: www.evansdist.com