EV Makers Looking to Startups for Innovation As Logistics Supply Providers Lag Behind in Technology; EV Issues Similar to ICE Vehicles; Safety & Power of Batteries Expensive;

The SITUATION:
This timely and invaluable strategic & managerial input is from one of the most respect logistics publishers globally & nationally.
This report is what Louis has recently and currently learned directly from his vast EV Supply Chain contacts and resources in the past month

Here is his report for your immediate ingestion and consideration: 

What EV makers look for from their LSPs.

  • They are looking for suppliers with a start-up mentality.
  • That means forward looking and flexible. With start-ups there are highs and lows and less predictable so need to be ready for that.
  • Need to Adjust to volumes.
  • Traditional LSPs have their strengths and offer stability.
  • Traditional OEMs also want a start-up mentality but it is much harder when they have so much legacy.
  • Technology is very important: “nearly all logistics companies I have spoken to are quite behind on technology.
  • Their technology is archaic.”

EV Vehicle logistics:

  • EV Vehicle logistics are not so different to ICE vehicle
  • Tracking via telematics? As smart as new EV cars are, they need input / data from the LSPs. Carriers with a good grip
    on their data is very helpful.
  • EV Vehicle weights could be an issue. Battery makes them much heavier. – this is an obvious statement to people you are sending this to.
  • Maybe add…… As the battery makes the car heavier, extra precautions need to be taken place, plus the heavier goods, the more expensive the transport costs are.
  • Therefore the transport cost per car is higher than ever.
  • Charging during the supply chain is not such a big issue in Europe. 3rd party compounds now have charging facilities.

International EV Logistics

  • Battery is shipped as dangerous goods. Especially internationally.
  • This requires a lot of documents from authorities. And as the volume is growing, there are more issues.
  • Due to the electrification of cars, the parts of these cars are now more expensive than previously.
  • Therefore, less inventory stock is wanted. Lead time for those parts is longer as the market is very hot. You are now competing with other industries – mobile phones, companies like Sony.
  • Creating the need for a lot of emergency shipments. Carmakers have to be flexible due to suppliers often demanding changes at the end of a deadline.
  • You have to order certain parts “or else will give to Apple”.
  • Transport can be impacted E.g. shipping by sea can have negative impact on electrical parts.
  • FSD (for self drive) chips are always upgraded.
  • FVL – when you arrive at destination sea port, the car may need charging when you arrive. Can’t move car with no charge.
  • LSP – there is a divide between auto experience and tech experience.
  • Still have a lot of traditional auto parts so good to have that experience. Auto providers understand the issues of closing plant. But for battery and electrical they prefer a service provider that has tech experience.
  • They understand the risk of electrical special parts. They understand documentation etc.
  • Storage and handling. But now more and more LSPs have that experience due to more EV cars.
  • Supply chain is so critical, more obvious than ever. especially sub-components. Often from other regions – Romania, India, Mexico. From low-cost countries. Europe is not too bad as they have the train from Europe to China. Can they speak to local governments to sub assemble in Michigan?

This Analysis, Commentary and Strategic Insights from
Louis Yiakoumi
+44 7984 421621
Louis@LConnect.co.uk

Wechat: LouisLogistics
Skype: LouisYiakoumi
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