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Finished vehicle logistics


A STRATEGY FOR CAPACITY AT STELLANTIS

By Marcus Williams30 May 2023

   
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Stellantis has taken a number of measures to help tackle the shortage of drivers
and available capacity in North America, including dealer pick-ups from vehicle
distribution centres and the use of digital technology. Nick Thompson, head of
vehicle logistics – North America at Stellantis tells Automotive Logistics more.

How is the current shortage of vehicle haulage drivers in the US affecting
Stellantis’ delivery of vehicles?

Nick Thompson: When contracted carriers can’t handle their volume and
supplemental carriers must be brought in to assist, it is more expensive, which
adds to our logistics cost. It also causes frustration for our customers when
vehicles are not being delivered within the contracted timeframe. Additionally,
every time a vehicle is changed from its standard routing, it requires manual
intervention, wasting time and human resources.

How is Stellantis working with its main transport service providers to optimise
available transport capacity?

Assuming main transport providers are the contracted providers currently being
used in the Stellantis network, we have experimented with several different
initiatives, some of which have been implemented permanently. One initiative was
establishing a dealer pickup programme, where the dealer picks up the unit at
the vehicle distribution centre, which allows the carrier to better utilise its
capacity.

Another initiative currently in a pilot phase is to incentivise the driver for
the delivery of sold orders, thus increasing the rate for a unit delivered
within certain parameters. So, we are looking at ways to both help with the
capacity issues and incentivise the drivers, so they are better compensated. 

Nick Thompson, head of vehicle logistics – North America at Stellantis

Is Stellantis looking to invest in or lease dedicated fleets and drivers? Does
the company already have its own transport assets?

Yes, Stellantis has a small, dedicated fleet in Canada for finished vehicles. In
addition, there have been discussions around partnering with other providers
that are not using typical auto hauling equipment, or just need trailers for a
current fleet of resources. Stellantis is continually looking at ways to be more
efficient.

Is Stellantis looking at ways to reduce the number of miles a truck must travel
to deliver loads as a means to make the job more attractive?

Stellantis is always looking for ways to be more efficient. Less miles means
less emissions, less cost, better velocity, etc. A majority of the contracted
carrier base is delivering to a specific dealer region or to dealers directly
out of origin. The most a driver travels would be approximately 500 miles from
origin, otherwise it becomes cost prohibitive. However, with the current rail
car shortage in the industry, Stellantis has been forced to implement longer
routes for direct trucking.

Is the company using digital technology to help mitigate the impact? For
instance, advance notifications of pickups or deliveries at plants and compounds
so that a driver is not wasting hours sitting around?

There will continue to be new digital applications as the pace of technological
improvements accelerates. Stellantis has every intention of using data to
improve efficiency and mitigate impact going forward and digitisation will be a
key component.

Is the current urgency amongst carmakers in the US to get vehicles to the
dealerships as quickly as possible compromising more efficient load building per
transport unit and therefore wasting capacity? How is Stellantis approaching
this?

There is more to load building than just velocity. If there is waste in the
loads, it causes a larger carbon footprint and benefits no one. Providers are
given a distribution sample and in turn, provide a standard delivery average.
Some units are delivered under the average and some over. But load building is
the responsibility of the carrier as it needs to align with their business
structure.





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