How a 3PL Benefits Auto Manufacturers

You wouldn’t think auto manufacturers would have a need for third-party logistics. Their core competency is a basic one: Build cars and deliver them to dealerships to be sold. But with consumer demand for vehicles on the rise, the auto industry is partnering with third-party logistics (3PL) providers to enhance their operations, both in the United States and around the world.

Take a look at how the versatility of public warehouses with logistic services, such as Brendamour Warehousing, Distribution & Services, is benefiting the auto industry.

Ensuring Operations Run Smoothly

Auto manufacturers that want to increase their global presence partner with 3PLs to ensure operations run smoothly and costs are minimized. After all, these public warehousing and distribution providers have incredible insight into global logistics and the challenges they bring.

For example, Brendamour Warehousing, Distribution & Services is the Midwest partner to a large distribution company in Japan. As such, we provide fulfillment services to automotive plants.

Among the warehousing, distribution and logistics services Brendamour provides to businesses in the automotive industry are:

- Distributing raw materials and components;
- Warehousing and inventory management;
- Inbound and outbound material flow management;
- Kitting and light assembly;
- Packaging, including custom packaging, repacking, bundling, and special needs packing services;
- Container management;
- Reverse logistics;
- Just-in-time delivery;
- Cross-docking;
- Transportation management.

This partnership is successful because Brendamour is able to provide flexible operations while supporting original equipment manufacturers. In addition, we are in tune with changes in the marketplace, so we’re able to implement new practices before the competition, as well as apply best practices and think out of the box to uncover areas of improvement.

Improving Logistics Efficiencies

As automakers build plants closer to the buyer to more quickly meet consumer demand, specialty automotive 3PLs, like Brendamour Warehousing, support these manufacturers by sourcing and warehousing parts from suppliers around the world and distributing them to plants across the country.

Other automotive fulfillment services we can provide include:

- Customs clearance and import and export services. Brendamour Warehousing is also a foreign trade zone.
- Inventory management of inbound parts from suppliers.
- Parts consolidation.
- Route optimization for a better distribution network.
- Continuous movement distribution.

We also apply our expertise to help auto manufacturers enter new markets or find solutions to challenges.

Managing Aftermarket Parts

Public warehouses with 3PL services also play a key role in the aftermarket industry. With original equipment manufacturers introducing close to 100,000 unique part numbers each year, effectively managing such a huge inventory is essential to the aftermarket supply chain.

Logistics services, such as those offered by Brendamour Warehousing, help the aftermarket industry address challenges, such as:

- The need for shorter lead times;
- Quality control;
- Light assembly;
- Parts complexity;
- Parts maintenance while warehoused;
- Consolidated shipments to improve efficiency and reduce freight costs.

Reducing Costs

Auto manufacturers have high labor and physical asset costs, but 3PLs can help them reduce or even eliminate their logistics costs.

By partnering with a 3PL, automakers can lower costs associated with warehouse facilities, including real estate, utilities, taxes, insurance, licensing, legal fees, maintenance, security, information technology, etc.; labor to staff warehouses; and product handling costs.

Learn How a 3PL Can Benefit Your Business

Just like 3PLs are benefiting auto manufacturers, third-party logistics suppliers can benefit your business, too. And you can realize these benefits without giving up operational control, thanks to the sophisticated warehouse management systems that 3PLs utilize that allow you 24/7 real-time access to your operations.

The biggest benefit that 3PLs provide businesses is the ability to allow them to focus on their core competencies. By doing so, your business can realize quality improvements, better customer service, and lower costs.

No matter what your business industry, Brendamour Warehousing, Distribution & Services will develop an individualized logistics plan based on your specific business needs and design innovative solutions to address your challenges.

Go With a Specialized Automotive 3PL

Choosing the right logistics company is key to a successful partnership. If your business is in or related to the automotive industry, it’s important to choose a 3PL that has experience in automotive logistics.

Brendamour specializes in automotive 3PL, with experience in managing its procurement, warehousing, distribution, inventory, order processing, order fulfillment, and more.

Contact Us Today!

Brendamour provides warehousing, distribution and logistics services to businesses of all sizes and in all industries. Contact Brendamour today to learn how we can benefit your business so you can start realizing the many benefits of a 3PL!