Logtech Boosts Automotive Industry, Reduces Carbon Footprint

With rising labor and fuel costs, a shrinking labor pool and growing customer expectations, logistics companies are leveraging the latest technologies to meet clients’ needs. In the automotive industry, logistics play a key role, especially when the sector faces major supply chain challenges. In these circumstances, automotive logistics would benefit from the implementation of all possible technologies, agreed industry experts.

“All technological innovations must be applied to automotive logistics. From route optimization, traceability and fuel savings to the overall reduction of the supply chain’s carbon footprint. Logistics partners support the entire automotive sector, from manufacturing to the transportation of new vehicles and parts for the aftermarket,” said Milton Magos, Country Manager, UPS Supply Chain Solutions.

In this changing world, data analytics have played an increasingly key role in all industries, enabling companies to find trends and draw conclusions out of the information collected. The logistics industry benefits massively from big data and business intelligence, according to DataPine. The daily management of multiple shipments, weights, sizes, contact details, routes and other variables, make logistics operations very complex. Data analytics greatly simplifies these processes.

“Through different devices we collect data. Data analytics enable us to have full visibility of the operation. We have been working with data analytics to provide clients with the ideal visibility of their shipments and forecasting. Big data allows us to define which vehicles to use, which routes and times to use, among other key decisions. These efficiencies are crucial for our automotive clients but also to final customers, who get to enjoy their products on time,” said Alejandro Raya, Vice President of Business Development, DHL Supply Chain.

Logistics involve several processes, from first-mile to last-mile. These include storage, warehousing, materials handling, packaging, inventory, transport and control. In the warehousing and handling part, AI and robotics are automating processes, collecting and analyzing information, increasing efficiency and boosting revenues.

“We use AI to incorporate other technologies and automate processes in our warehouses. In addition, AI collects data from our suppliers, such as shipping companies and airlines, and our clients. On the other hand, robotics are very effective in pick and pack processes, making them more efficient and errorless,” said Gilberto Rivera, Vertical Sales Director Mexico, DSV.

Automotive technologies, such as telematics, also play a crucial role within logistics. Vehicle telematics uses GPS technology to triangulate the position of vehicles and digital cellular networks, transmitting a range of data from the vehicle to other software and hardware systems, as reported by MBN. The transmitted data covers everything from location and vehicle diagnostics to driving style. Telematics solutions have become crucial for smart fleet management in any kind of company.

While implementing telematics is cost-effective, it is important to do it correctly, said Fernando Ardura, Chief Business Officer, Traffilog: “Telematics makes businesses more profitable. With the right data collected and administered by the right people, this technology enables lower fuel consumption, which is the biggest expense in fleet management. With 4-5 percent savings in fuel, companies save millions annually, while reducing their carbon footprint.”

The scope of telematics is broad, ranging from its integration in trucks at the manufacturing plant to its use during engine production, added Ardura. In addition, telematics enables several other efficiencies while trucks are operating. “We also have access to the daily operation of vehicles. Data allows preventive maintenance, allowing companies to have vehicles circulating most of the time and save on maintenance costs, in addition to tracking drivers’ behavior and habits. More data ensures better deliveries, higher efficiencies and safer roads,” said Ardura.

Tech-Driven Logistics Efficiencies are Crucial for a Sustainable Automotive Industry

While the automotive industry requires efficient, timely and reliable logistics, the efficiency brought by technology not only enables better logistics; it also creates a more sustainable logistics sector, which translates into a more sustainable automotive industry.

“Logtech has evolved the means of communication, transactions, transportation and purchase of products. The phenomenon is based on the use of technologies connected to each other. Data, transportation and warehousing efficiencies translate into more sustainable operations for all industries requiring logistics services,” said Mónica Mendoza, General Director, GIRAA.

Sustainability has become part of the core business of many companies, including logistics giants. By 2050, UPS and DHL have the mission to become neutral zero in carbon emissions, from warehousing to transport. DHL already has 200 EVs in Latin America, from which 50 are deployed in Mexico. Regarding alternative fuels, the company operates 20 trucks in Mexico and 104 in Latin America, said Raya.

Sustainable logistics operations support sustainable industries, so collaboration is key to achieve a more sustainable automotive supply chain, “It is important that logistics partners and automotive companies work together to create a more efficient supply chain. It takes all players involved to achieve carbon emissions reduction,” said Magos.