What are the major logistical challenges of the automotive wire harness industry? Learn how to move one of the most essential products for the sector.
The largest manufacturers –and exporters– of automotive wire harnesses are, respectively, China and Mexico.
The State of Chihuahua, in the extreme north of Mexico (with direct borders with New Mexico and Texas, in the United States) has more than 140 assembly plants of this product, which is why it is known in the global automotive market as the world capital of the wire harness.
In 2022, Chihuahua will host the Wiretech, meeting point for the best manufacturers of electric harnesses in the world. Europartners Group will be present at stand 94, with the best logistics consultants to talk about your challenges and present alternative solutions.
The market is booming and has the potential to grow. U.S. imports of wire harnesses produced in Mexico grew by 78% between 1994 and 2007, accounting for more than 11% of all Mexican exports of auto parts to the United States.
The supply is abundant and, with the development of increasingly technological vehicles, there’s more demand as well.
So, what are the big logistical challenges of the automotive wire harness industry?
- Difficulty to move inputs and final products
The wire harness sector began to develop in the 1980s supported by abundant, cheap labor and ease for export. It was quite affected on the last few years by the crisis of international transport, specially ocean freight services.
With the scarcity of spaces and the skyrocketing of tariffs, the possibility of line stoppages is increasingly latent.
- Deciding between just-in-time or just-in-case
Challenge number #1 leads industry decision-makers to review their strategies: if it is increasingly difficult to get spaces, maintain the budget and get supplies on time, isn’t it better to reactivate warehouses and have them at hand (what is now known as just-in-case) again?
- Developing contingency plans in case of sudden changes
Three years after the start of the pandemic, the market continues to face disruptions stemming from zero-covid strategies in China, congestion at U.S. ports, and most recently strikes in Europe.
In these cases, the logistics of the industry must be able to count on agile alternatives so that shipments won’t get stranded in ports and airports for up to a few weeks.
- Cargo visibility between the plant and the consignee
Another consequence of sudden market changes is the difficulty to get real time cargo follow-up, knowing if it really arrived at the port or if it was rolled, if it left the airline’s warehouse or is waiting for customs service, etc.
- Updates on the market situation
Sometimes, defeated by the amount of daily work, industry professionals decide not to review follow-up notifications. If they reach this point of confidence in the delivery of the contract service, they must be update on the situation in the markets of departure and arrival of the cargo.
Why is Europartners Group an excellent strategic partner in logistics for the wire harness industry?
With 20 years of experience in the global logistics market, Europartners has as one of its main verticals the AutoMobility industry.
Partnering with us in a long-term relationship, you’ll have:
- Time-sensitive services tailored to your specific needs.
- Professionals experienced in meeting the specific needs of the automotive industry.
- Scheduled cargo delivered with the accuracy determined by each project.
- Specialists in critical cargo
- Key Account Managers (KAM), in-house professionals, specialized consultants, and specialists in multimodal solutions.
- https://europartners.com.ar/wp-content/uploads/2022/07/EP-Air-Consols.pdfScheduled, guaranteed and frequent air cargo consolidation services.
- In case of emergency shipments, we can design agile contingency plans according to your specific needs.
- Constant communication, status and monitoring 24-7/365.
In Europartners’ AutoMobility vertical, we work to offer comprehensive logistics services, door to door whenever necessary, with up to three options to facilitate decision making, even multimodal solution. You can also rely on our high operations capacity, applying the Kaysen philosophy of continuous improvement.
Contact us today to let us know your logistics needs and learn how your logistics chain can support you in growing your business in the automotive harness industry and beyond. We will also see you at stand 94 of the Wiretech Chihuahua event, in Mexico, on September 7 and 8, to hear about your most specific challenges.