EUROPE IN FOCUS
OPEL/VAUXHALL
Aiming for
end-to-end
control
W
hen carmakers make changes, be it launching
a new model, adding or shifting a supplier
location, or selling in a new market, they
reverberate across the supply chain, either as
ripples or shockwaves that require their own
logistics response. Whether it is new packaging to transport
a small part, the redesign of a plant’s parts supermarkets, or
even new suppliers altogether, such decisions rarely touch any
part of the supply chain in isolation.
The best operations arise when OEMs plan far in advance,
whether in cost modelling supplier decisions, or testing the
delivery efficiency of part designs. It also helps when there is a
strong, central supply chain function with responsibility from
customer order input to meeting final delivery promises.
This ‘end-to-end’ focus, from model development through
to outbound logistics, is precisely the remit of Opel/Vauxhall’s
supply chain department, led since 2008 by director Michael
Scholl, a 23-year General Motors veteran who has held various
production, material and planning roles. His responsibilities
run the gamut, including material and vehicle order
management, production scheduling, packaging development,
16
APRIL-JUNE14
Christopher Ludwig discusses parallel
planning, in-plant logistics customisation
and complexity with Opel/Vauxhall’s
director of supply chain, Michael Scholl
in-plant logistics, inbound and outbound logistics, and
network planning, to name a few.
Supply chain is among the most cross-functional teams
in GM’s organisation, working across manufacturing,
engineering, product development, sales and purchasing. And
while the carmaker has been pushing a ‘total enterprise cost’
approach to its sourcing and manufacturing for a decade,
including consideration for capital costs like plant and
supplier tooling and packaging, and expenses like material,
customs and logistics, among others, Scholl says the process
has been refined and strengthened over the last three years.
In particular, advanced planning, or ‘frontloading’, in
the supply chain has come more strongly to the fore. The
supply chain team conducts more studies of manufacturing
footprints, parts design and assembly and delivery concepts
during the vehicle development phase. Important examples
can be found for packaging design. “As soon as the first
technical drawing of a part is available and quality, handling
EUROPE IN FOCUS
OPEL/VAUXHALL
IN THIS STORY...
p16 An integrated SCM
p17 Planning and frontloading
p18 In-plant logistics
Network design
p20 Opel’s order slotting
Packaging standards
p22 Optimising schedules
Managing constraints
Opel’s supply chain department is increasingly involved in studies to improve logistics costs from vehicle development through to final delivery
and ergonomic requirements are determined, we start with
the packaging design using CAD technology for those parts
requiring special racks and containers,” Scholl says. “We are
focusing on large, bulky and difficult to transport parts, like
fuel tanks, brake and fuel pipes, struts, etc.”
Opel/Vauxhall has also integrated its vehicle order
management with production and material planning,
helped by a suite of software solutions that consider material
availability across an order pipeline that runs 11 months in
advance (see box starting on p20). For the first time, Opel has
brought together those who manage orders, material follow
up and logistics, leading to a better understanding of potential
supply bottlenecks, and how to react to them.
Scholl says that logistics considerations, as well as Opel’s
active supply chain engineering, have helped shape the supply
base, including more localisation. While he admits that there
is no “one-size-fits all” supply chain, his department has more
influence on manufacturing and supplier footprint decisions,
including on keeping certain parts and products in Europe.
“We absolutely have more influence than we had in the past.
The function has evolved from having an operational focus to
a being a designer for a sustainable value chain,” he says. “Our
role at GM has also developed from a function that executed
decisions made by other functions to an even partner.”
Supply chain management will be even more important
as Opel enters a period of great change. The carmaker will
close a plant in Bochum, Germany this year which will
cause supplier shifts as models are consolidated across other
factories. At the same time, it will invest €4 billion ($5.5
billion) to fund 23 new models and 13 engine ranges, while
sales of Chevrolet are set to end in west and central Europe by
2016. Complete supply chain consideration will be crucial to
ensuring uninterrupted production and deliveries during this
phase, as well as in helping to improve future costs.
Frontloading the supply chain
Ludwig:
g How far in advance does Opel
p plan
p supply
pp y
chain operations?
s
Scholl: We start very early in the vehicle development
process, even prior to the final decision to begin a
product programme. This can be 4-5 years before the start of
production.
What are Opel’s biggest challenges for advanced planning?
We need to ensure that the total enterprise cost (TEC)
mindset is considered in all the decisions that we make.
This requires that this way of working is institutionalised
across the functions and not dependent on single individuals
driving it.
APRIL-JUNE14
17
EUROPE IN FOCUS
OPEL/VAUXHALL
REDESIGNING
CHARTERING IN-PLANT LOGISTICS
COMPLETE
CAR
While
plant managers
are responsible for day-to-day operation
of
in-plant logistics, Opel/Vauxhall’s supply chain function takes
CARGO
a management lead of it across all plants. This centralisation
allows the carmaker to identify best practices and roll out
standards, including in packaging, parts handling and material
handling equipment.
A proliferation of part numbers has recently created ever
more in-plant logistical challenges for Opel. This rise is partly
the result of more customisation options, which are “almost
infinite” for the new Opel Adam, Scholl says. Although
desireable from a marketing and customer perspective, these
options test the limit of floor space on the assembly line and
storage areas, as well as its stability with variations in volume.
To manage this complexity, Opel has considered redesigning
aspects of inventory locations and line-feed routes. “One
possibility to cope with this volatility is a combination of fixed
and random store locations, which require new tools and
processes,” says Scholl.
More part numbers make it critical to focus on replacing
extra handling in plants and warehouses, such as repacking
or sequencing, with
more advanced delivery
concepts. This is already
a priority of the GM
Global Manufacturing
System, but the growing
complexity has led the
carmaker to look more
carefully at processes
The Adam’s high customisation creates that reduce inventory and
complex in-plant logistics challenges
handling at the line.
“Smart processes that avoid this type of non-value-add
activities are key for a lean value stream,” Scholl says. “Line
and dock delivery requirements should be considered as far
ahead as possible in the delivery method of choice as well as in
route and load planning.”
Opel has been increasing the amount of kitting in plants to
help reduce line-side complexity. “Currently, we are conveying
up to 50% of our general assembly parts via kitting to the point
of use,” says Scholl. “For the remaining parts we apply different
methods such as kanban, andon or [supply-in-line sequence]
deliveries. The part characteristic determines the best option –
there is no dogma.”
An offshoot of the growth of kitting for Opel has been the
use of more automatic guided vehicles (AGVs) to move kits
to and from the line side. “We are using AGVs in almost all of
our plants. They have increased with the introduction of kitting
applications,” says Scholl. “Although this technology is very
attractive, we never forget its financial aspect, as investment
and maintenance costs can be considerably high.”
Opel is also looking to improve parts flow to plants with a
paperless pick-up sheet (PUS) for real-time visibility of incoming
inventory. “We are piloting a paperless PUS supported by
state-of-the-start technology for tablets and smartphones,”
says Scholl. “This enables us to improve faultless and real-time
information without the burden of administrative paperwork.”
Avoiding parts proliferation altogether is part of GM’s
advanced planning. “Proliferation that gives customers value
needs to be supported, whereas that which drives complexity
into processes and products without any benefit to customers
should be avoided, or at least identified and eliminated.”
18
APRIL-JUNE14
Do you consider material handling in the vehicle
development stage?
Yes, indeed, we consider supply chain handling concepts
and associated costs. When it comes to choosing the right
delivery method, part proliferation and complexity are the
main drivers, and can result in non-value-added activities like
repacking or sequencing. Our frontloading activities are thus
focused on reducing complexity at the early stage to avoid
non-value add activities.
What role does supply chain play in determining production
and sourcing locations for GM?
We are an even partner in the decision-making process.
Supply chain and logistics are operational considerations
that can be expressed in cost. Bottom line, the decision needs
to make sense from an enterprise perspective, with supply
chain playing a major role. In this respect our costs can tip a
decision for a certain manufacturing or supplier location in a
certain direction.
Is there scope to localise more parts and tooling in Europe?
Yes, localisation of suppliers is desirable from a supply
chain perspective. The question is whether you can
justify the potential investment required or higher labour cost
with other reduced on-going expenses. In light of increased
intercontinental logistics costs, double tooling and supplier
localisation is a more and more attractive alternative.
How possible is it to shift supplier locations in a mature
market like Europe without disrupting suppliers’ economies
of scale?
Where you would lose scale on a single part, you might
counteract this by applying bundling strategies, where
you give suppliers a broader scope of parts within a
commodity, or the volume for the same parts for multiple
products to generate scale. These are strategies in our toolbox,
but they are not exclusive and not a rule. Every case is special.
Beside obvious short-term benefits, it is more important than
ever that GM and its suppliers are aligned. Alignment with
business and cultural priorities is necessary to help GM and
suppliers achieve scale and drive mutual growth and success.
This alignment will also help to build strong, strategic, longlasting relationships based on trust and transparency which
will eventually drive better business performance for GM and
its suppliers.
Designing the logistics network
Ludwig: How often do you engineer logistics networks?
s
Scholl: The optimisation of our logistics network is a
constant and multi-layered process. With every
introduction of a new product, the overall network is
re-assessed and optimised on a macro level. Every
EUROPE IN FOCUS
OPEL/VAUXHALL
introduction of a new supplier location requires integration.
We are optimising single routes as volume changes even on a
weekly and daily basis. We are also taking a more strategic
approach and challenging the variables of any given plant
network from a TEC perspective for improvements across the
network.
With the end of car production in Bochum, have you had to
redesign network flows?
Every change in the manufacturing or supplier footprint
that impacts the volumes of material flows results in a
redesign of the affected part of the network. This might lead to
to new locations for consolidation facilities or changes in the
direct, milkrun and crossdocking mix. These shifts are part of
our strategic network analysis.
GM Europe now uses Gefco as a fourth party logistics
provider. Is the network engineering and planning handled
by Gefco rather than GM?
Beside other tasks, Gefco plans and engineers the
most efficient network for inbound and outbound
transportation. Based on a bigger book of business, Gefco can
generate significant volume leverage and optimisation for us.
In combination with our in-house competence, this generates
a powerful planning and cost management capability.
Changes in Opel’s manufacturing footprint as well as market shifts mean
that the carmaker is engineering its logistics network, together with its
4PL Gefco, as often as every day or week
EUROPE IN FOCUS
OPEL/VAUXHALL
OPEL MOVES TO ‘ORDER SLOTTING’
In today’s complex supply chains, with a proliferation of
customer options and global material, one major challenge for
carmakers like Opel/Vauxhall is to manage parts availability
against production schedules as far in advance as possible,
and with as much flexibility up to final assembly. After all,
any changes to supply that cannot be resolved might result
in expensive premium freight; furthermore, a plant’s sudden
need to swap the sequence of vehicle production because of
shortages could delay customer deliveries.
To maintain stability, according to Michael Scholl, Opel works
with a material plan based on 11 months of fully specified
forecast vehicle orders and projections. Orders can be changed
at any time before the plant production sequence is fixed. “To
protect the suppliers from volatility created by order changes,
we work with a pick-up sheet concept that fixes material calloffs two weeks prior to pickup at the supplier side,” he says.
What would you point to as the big trends or changes that
will shape the next phase of your network engineering?
Beside the traditional factors of cost, speed and
responsiveness, ‘green logistics’ will become more
important. In this respect we are looking into extending our
rail usage and intermodal traffic where it makes sense.
Looking to standard packaging
L d i Have
Ludwig:
H
you b
been able
bl tto iincrease th
the use off
returnable packaging in your plants?
s
Scholl: The percentage of returnable packaging in our
plants is historically very high and a key strategy.
However, for certain parts and supplier locations, returnables
cannot be justified from a cost perspective, as the length of
the loop would require too high an investment and freight
cost for empty returns. For that reason, a significant amount
of overseas parts arrive with expendable packaging.
Have you made any improvements in standardising racking?
With a plan based on 11 months of fully specified forecast
vehicle orders and projections, orders can be changed at any
point before the plant production sequence is fixed
A difficulty in managing these orders is the separation among
most manufacturers between those who manage orders,
material supply and logistics. In cases where one team might
see changes or disruptions – whether it’s an order change, a
material shortage or delayed shipment – there is usually a time
lag before others know and react.
However, Opel has recently made a step-change in its order
processes. Last year, it implemented a suite of IT systems
from software provider flexis – supported by an organisational
realignment – which has helped the carmaker to integrate
the workflow of the teams responsible for forecasts, orders,
materials management and production scheduling.
The development of packaging is centralised and
therefore racking is standardised across all plants if part
dimensions and configurations allow it. Just as our vehicle
engineers are working on de-proliferation of our products,
the supply chain team is trying to de-proliferate our
packaging portfolio.
Thus, we are reducing the use of special racks and replacing
more and more with standard containers. Wherever special
racks are still required, we try to re-use existing ones.
Needless to say, we are working with a modular design that
not only supports re-use but also allows us to optimise the
utilisation of truck and container space.
From sequential to parallel planning
In this new process, called ‘order slotting’, Opel takes real and
forecast vehicle orders at the time of order entry and ‘explodes’
them into part numbers based on the bill of material. The
resulting part requirements are then compared in real time
with the availability and constraints of these part numbers.
This approach – which is actually a combination of three,
off-the-shelf flexis modules that manage demand, capacity
and inventory – covers planning for tier one suppliers to Opel’s
plants. The software solution brings together vehicle orders
that start from 11 months and material information for eight
months up until nearly three weeks before production, when the
information is passed onto plants.
According to Oliver Reisch,
CONTINUED ON P22
20
APRIL-JUNE14
Opel is reducing the variety of packaging types, including the use
of fewer special racks and replacing more with standard containers.
Where special racks are still required, the OEM tries to re-use them
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EUROPE IN FOCUS
OPEL/VAUXHALL
CONTINUED FROM P20
Upstream and downstream links
chief operating officer at flexis, the systems are based on an
advanced ‘in-memory’ data storage technology combined
with online systems. The order pipeline automatically adjusts
to all changes, including confirmation of customer orders,
market and forecast changes, as well as advanced shipping
notices (ASN) that provide visibility of material in transit. This
information is then matched against the production schedule to
determine any constraints.
“The systems cover all of the forecast horizon as well as the
customer order horizon,” says Reisch. “When a new [vehicle]
order comes in, it is allocated to a plant and calculated against
the availability of capacity and material availability using the
due date information in the order.”
For Opel, these system processes have replaced the
planning and scheduling functions in its own mainframe
production planning system. The flexis software effectively
synchronises programme, supply and order planning processes
that carmakers usually
manage sequentially,
which tends to mean
supply shortages or other
building constraints are
not immediately accounted
for. Instead, manufacturers
usually do a ‘batch run’
overnight or once a week
to check for issues. Build
schedules and material
orders would then be
adjusted manually.
By contrast, ‘parallel
planning’ couples
programme scheduling
and material availability.
The system runs a
simulated bill of material
‘explosion’ to verify part
availability of vehicle
orders, as well as an
‘implosion’ (which checks
the incoming parts against
The parallel planning method allows the schedule vehicle
Opel to keep delivery date promises production) to gain an
by understanding the risk of
immediate picture of the
material shortages in advance
supply chain.
This bridge between
those responsible for orders and material is a breakthrough in
Opel/Vauxhall’s supply chain management. “By implementing
this system we have broken up existing organisational
boundaries,” says Scholl. “People from order management,
material management and from logistics are looking at the
same data which leads to quick, cross-functional decisions.
“It’s a paradigm shift towards automation and real-time
data transparency which definitely reduces premium freight
and bottlenecks, but even more importantly it allows us to
keep delivery date promises towards our customers as we do
not move around orders anymore due to material shortages,”
Scholl adds.
Oliver Reisch says the global nature of the supply chain,
as well as its continual flux, makes incorporating material
constraints more important in production planning. “The
further out in time you go, the
CONTINUED ON P24
22
APRIL-JUNE14
Ludwig:
g Outside the order slottingg p
project
j (see box
p20), are there gaps in creating buildable schedules
based on the total supply chain?
s
Scholl: With the order slotting capability we made a huge
step forward. However, the transparency of supplier
capacities is definitely an area where we still can improve.
Do you want more visibility in the lower tier pipeline?
Our contact partners are tier ones. We expect them to
manage their supply base as we do with them, except in
very complex situations such as the Fukushima crisis in Japan
or flooding in Thailand. If our tier one suppliers ask for
support, we will get involved in managing the lower tiers.
Do you track the accuracy of your forecasted vehicle
delivery dates?
Delivery date reliability is a key cross-functional metric.
Over the last few years we have implemented several
initiatives, such as sequence stability in our processes. Order
slotting is the most recent one and we will continue to focus
on this subject as we are convinced it is important for
customers to get vehicles when they were promised.
Does Opel optimise its build schedule by vehicle
destination?
Indeed, we are optimising our production schedules
according to outbound needs. For example, we batch
production of vehicles for certain markets or delivery
destinations to support a quicker pick-up by carriers. In
combination with our production sequence stability, this has
positive effects on delivery time as well as on total cost since a
reduction of tied-up capital is imaginable. This has significant
potential, especially for markets with lower volume.
Managing the everyday supply chain
Ludwig:
g Are you
y facingg anyy chronic material shortages?
g
s
Scholl: We are not currently confronted with chronic
bottlenecks such as during the Fukushima crisis, but
there are always commodities that require full attention and
priority, such as for high-demand products or those from
financially stressed suppliers. To cope, GM has a global risk
management organisation that aims to identify potential risks
as early as possible before they hit operations, and to develop
and implement solutions if a risk has materialised. As there is
no perfect world, problems will happen. I can only ask for full
transparency and early warnings if there is a potential risk.
GM also supports the MMOG/LE (Materials Management
Operations Guideline /Logistics Evaluation) initiative. We ask
our suppliers to conduct this self-assessment to identify
potential shortfalls within their internal processes.
www.automotivelogisticsmagazine.com
EUROPE IN FOCUS
OPEL/VAUXHALL
CONTINUED FROM P22
fewer customer orders and the more forecasts orders there
are, which could change over time,” he says. “Your production
is constrained based on the supply chain decisions you have
made long term, so you must consider availability or capacity
constraints both in the factory and the supply chain.”
Testing limits
Bringing together this information isn’t the only reason
Opel opted for this solution. Also critical, says Reisch, is the
systems’ “service orientation”. Whereas the older systems
were black screen, mainframe computers, the flexis modules
are user-friendly web screens. They are also fairly easy to roll
out and adjust – after implementing the systems for Opel’s
largest platforms last May, the carmaker’s suppy chain team
integrated the systems to its other car lines by itself.
Along with the bill of material explosion and implosion, an
Opel user can highlight a specific part and check manually
against ASNs to measure risks or assess potential fixes. For
example, if a part is showing a constraint, a user can click
on it and run a scenario based on expediting the shipments,
or a realignment of
orders. “The system
can automatically
check these updates
and helps you see how
far you get with an
accelerated material
flow,” says Reisch.
The sheer number
of parts involved
means order slotting
is currently set to high
levels of monitoring
for long-lead time
parts and critical
components, says
Scholl, but there is
no limit to how many
parts the solution can
Because of the sheer number of parts
incorporate. Opel is
involved, the order slotting system
already
integrating
is currently set to high levels of
the software into
monitoring for long-lead time parts
production scheduling
and critical components
at powertrain plants
that include parts down to the last day and week.
Further out, flexis is looking into how its product portfolio
could be further integrated with OEMs’ manufacturing
execution systems to cover more production processes. It is
also looking further upstream, such as aligning demand and
capacity planning with dealers, as well as considering vehicle
logistics as a constraint in the order process.
“We see potential for such systems to be integrated into
more business processes, connecting all the dots across the
supply chain with real-time updates,” says Reisch.
At Opel, meanwhile, Scholl believes that the diversification
of models offered to customers will require further integration
of the processes between production planning and dealer
deliveries. “Model fragmentation will drive more volatility into
the system and will further sharpen the need for a crossfunctional balancing between flexibility for sales on the one
hand and stable schedules on the other,” he says. q
24
APRIL-JUNE14
How well is the logistics network able to respond to
sudden changes?
Logistics must be a multi-stage process that takes sudden
changes into the equation and still optimises those
impacts within any given set of variables. That might mean
having more smart inventories as a part of a more tactical
weekly and daily operating plan. We already have a high level
of cube utilisation across transportation modes at all receiving
areas, while we monitor the major consolidation facilities
prior to shipment to allow for any necessary corrective
measures.
How synchronised is Opel’s production with tier suppliers?
Synchronisation of the value stream requires that you
provide certain stability in your internal processes.
Production sequence stability has the highest priority in our
plants and is measured by different KPIs. Based on this
stability, we have coupled several suppliers directly to our
production programme, having them produce and deliver in
line sequence.
This isn’t limited to suppliers adjacent to our plants, but
includes remote suppliers, such as customised wiring harness
suppliers in Romania delivering to German assembly plants.
We encourage our suppliers to use this sequence stability to
also synchronise their tier supplier base.
Finally, what changes do you see most affecting
day-to-day operations?
It will continue to be balancing flexibility for sales versus
stability of schedules for the supply side. Managing this
in light of a growing proliferation of product and parts will be
the biggest challenge.
Even more important is to recognise that the supply chain
function should manage its destiny by better driving the
design of the value stream early in the process. All of this must
occur under the umbrella of total enterprise cost, which
requires transparency and the right mindset across the entire
General Motors organisation. q
Several of Opel’s suppliers, adjacent as well as remote, produce and
deliver their parts and materials in line sequence
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FINISHED
VEHICLE
LOGISTICS
April-June 2014
a magazine from
Automotive
LOGISTICS
IN PRINT...
Automotive
LOGISTICS
phic
ph
hii wit
iithh a
c)
Michael Scholl’s
end-to-end supply
chain strategy at
Opel/Vauxhall
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Developed
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Speedy spare parts
A special report on
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How China stacks up
Returnable packaging in
China is on the rise but
is held back by a lack of
equipment standards
www.automotivelogisticsmagazine.com
AL April-June 14 Cover.indd 1
In-plant logistics
OEMs differ in their
outsourcing habits, but
many show an interest
in kitting for plant Åows
an
North American dreams
New plants in Mexico
and growth in the US
will test the region’s
outbound logistics
Brazil port reforms
The country is trying
to encourage private
investment, but new
laws are complex
ULTIMAMEDIA publication
14/03/2014 11:14
All aboard for change
Our annual European
ports survey reveals
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Chrysler’s mandate is
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Protecting what’s dear
Carmakers weigh up the
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107
Ports & processors
E
PORT OF BALTIMOR
WHAT’S HAPPEN
ING
Mr Richard Powers
Director of marketing
4731
Tel: +1 410 385
landports.com
e-mail: rpowers@mary
QUICK FACTS
percentage of business
by tons 10%
in automotive
existing customers
Chrysler,
BMW, Ford, GM,
Mercedes-Benz,
Jaguar,
Mazda, Honda,
Subaru, Toyota,
Land Rover
in 2012
annual turnover
and light trucks
652,000 automobiles
location of activities
Kingdom, Italy,
Germany, United
Mexico, Japan,
Middle East countries,
Spain, Russia,
countries
South American
Regardless
of unpredictability
sales, Russia
in vehicle
needs more
investment
vehicle logistics
for
, writes Marcia
MacLeod
Who we spoke
Alexander
Larin, CEO,
Rolf
Alexander
Zhuravlev,
Major Auto
CEO,
Trans
,
together manufacturers
programme brings
autos
port officials and
handles more
labour, auto processors, every month to
The Port of Baltimore Why? Baltimore’s
chain
US port.
others in the supply
it
than any other
at the port.
advantage places
discuss auto handling Baltimore’s
superb geographic
for
closer into America’s
Two more reasons
about 180 miles
ports.
are its experienced
other East Coast
success with autos
heartland than
four onsite auto
is located
labour force and
of
The Port of Baltimore highway 95, the
can add a myriad
Interstate
processors which
immediately off
and
car.
the US East Coast,
features to any
main street of
highway
autos are actually
from Interstate
terms of what
away
In
names
minutes
24
only
Within
Port of Baltimore,
to the Midwest.
handled at the
70 which links
the Port of
come through
hours, autos that
to two-thirds
find their way
Baltimore can
population.
of the nation’s
highway access,
In addition to excellent 1 on-dock
two Class
Baltimore enjoys
and Norfolk Southern,
railroads, CSX
option
another intermodal
which provide
.
manufacturers
for automotive
all of its cars with
Baltimore handles
its
treatment through
special white glove
This
ned quality program.
industry-renow
TICS BUYERS’GUIDE
AUTOMOTIVELOGIS
3
to:
Axel Bantel,
former head
European region
of commercial,
[reassigned
to Asia], WWL
Uwe Seliger,
Europe and director, Central and
Eastern
Russia, BLG
Logistics
Automotive
The Port of Baltimore automotive industry
for the
A driving force
Port of Baltimore.indd
IN...RUSSIA
Spending
may stave
off the co
ld
www.marylandports.com
Mitsubishi,
include Ford, Chrysler, Rover, GM, Suzuki,
Land
Mercedes, BMW,
and Nissan.
Porsche, Jaguar,
more
of Baltimore is
Autos at the Port
also a
commodity, it’s
than a successful
than 1,150
generator. More
significant job
are
Port of Baltimore
direct jobs at the
business.
the port’s auto
generated by
Søren Jensen,
head of Russia,
WWL
Koray Igcioglu,
director, Omsan
Lojistik
Edward Karibov,
director, outbound
logistics, Ford
Sollers
Spokesperson,
Gefco
Krzystof Szeligowski,
key account
Adampol
manager,
R
ussia’s automotiv
e growth in
coupled with
government recent years,
production,
incentives for
led many OEMs
local
the country.
More domestic to set up shop in
rebalanced
production
network away
the Russian
has
finished
from being
However, until
primarily orientated vehicle logistics
recently at
for imports.
reasonably
least, import
strong, with
some carmakersvolume has been
the potential
for a
and providers
Although the shortage of port space
fearing
and truck capacity.
decline about Russian market is flat
and currently
5% in 2013,
much of the
forecast to
productio
capacity expansion n
that
had been set
IN THIS STORY.
in motion
..
several years
ago
p64 Rising
coming online. is now
Russian
p65 Port developmeoutput
Renault
and Nissan
p66 Rail restrictions nts
have begun
production
at an
Road distribution
plant in Tolyatti, Avtovaz
Gaz is building while
Chevrolet,
Nizhny Novgorod
Volkswagen
and Mercedes
facility in Kaluga . In 2014, Volkswage
vans in
n will also
to accommod
expand its
Rapid – the
ate productio
plant currently
n of the Skoda
cars and 8,600
produces approxima
VW and Renault
tely 225,000
expanded its
trucks per
plant in St
year. GM
Petersburg
the region
, while Hyundai’s has
has recently
begun Kia
plant in
Chinese brands
productio
are growing
n as well.
Larin, CEO
of Rolf, a Russian fast too, according
to Alexander
recently took
logistics firm
a 51% stake.
plant
Larin highlights in which NYK
l t iin K
Karachaev
h o-Cherkes
the new Derways
Ch k sk,
building Lifan,
k near the
th Bl
Black
k Sea,
S which
UAZ has also Haima and Geely, all
hi h is
i
signed an agreement Chinese brand
BAW brand
vehicles.
to produce
in Ulyanovsk
the Chinese
, near Tolyatti.
Elena Fedorovskaya,
head of car
Volkswagen
logistics,
Russia
– a driving force
The Port of Baltimore
industry.
for the automotive
2014
10/11/2013
64
FVL july-sep
11:15
Ad mpo
Ada
m oll move
vess vehi
vehi
eh cle
cless from Eu
Pol
P
oland an
and
urop
rope
d then
e to Russia
e th
hrou
rough
gh Bel
via Malas
Be aru
ar s – about
a zewica in
out
u a 16-hour
journey
n
FINISHEDVEHICLEL
OGISTICS
Russia.indd
JULY-SEPT
EMBER13
1
20/06/2013
Websites
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