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-- 23 - 25 april 2019 hyatt huntington beach, ca #fvlna home report 2018 registration venue/hotel 2018 sponsors 2018 speakers 2018 programme 2018 attendees 2018 photos 2018 archive toggle navigation toggle search search for... search search event... search home events fvl north america 2018 report 2018 navigating an uncertain future the finished vehicle logistics industry may be facing a shortage of drivers and rail cars but it has plenty of platforms on which to communicate… and one of the main messages at this year’s fvl north america conference in huntington beach, california, was that people in this sector need to communicate more, reports marcus williams to take rail, for instance, one of the main concerns for the oems at the moment is the sudden shortage of rail cars for finished vehicles – something that both american honda motor and subaru noted at the event. chuck kendig, assistant vice-president of logistics sales and production planning at american honda motor, said rail capacity was an issue jeopardising the otherwise good and consistent offering it had on the delivery process to the end customer. he admitted the carmaker’s planning system was more than 20 years old but said honda was scoping out a new process to manage vehicle delivery and analysing its network in detail. part of the problem, kendig said, was that carmakers needed to collaborate better on the use of rail because it was the most economic way to move vehicles. “the railroads do a great job,” he stressed. “but throw any transport mode a huge spike and they will have trouble dealing with it. our industry is guilty of putting huge spikes in the pipeline. the solution is that we need to collaborate more between the oems.” he went to say that around 80% of honda’s traffic goes by rail and the provision of service is generally very good. “we spend a lot of effort collaborating with our business partners but not with each other [as carmakers]. we are in the situation we are in today because we are not planning together. you can’t expect anyone to build capacity for the peak periods. we need a more level flow.” gerald lee, vice-president of vehicle planning and logistics at subaru, said he could not understand where the shortage had come from. “the rail providers are investing [in stock] but [this shortage] has come from nowhere,” said lee. “we have excess cars now for march delivery and this is not something we anticipated.” ameican honda’s chuck kendig joined gerald lee from subaru and govin ranganathan from nio usa to discuss logistics as a competitive advantage what compounded the issue for the carmakers, said lee, was the truck driver shortage, which meant that without adequate rail capacity, there was a real issue. kendig added that retaining a stock of trucks and attempting to hire drivers for the two months of the year when there were volume spikes was unrealistic on the grounds that no one would pay for it. like honda, subaru is implementing new systems and has had one designed in-house for better allocation of space on rail. true network optimisation one way to improve how rail is used is better network optimisation of the entire car delivery process. steve tripp, vice-president of global strategy and execution at icl systems, revealed that despite belief by logistics providers to the contrary, the finished vehicle logistics sector had never optimised its entire network. tripp conducted a poll at this year’s fvl north america conference to get an idea of how network optimisation was carried out by those attending. among the questions he asked delegates was how many times they performed a ‘blank sheet’ or complete optimisation of their outbound networks. of those responding, 41% said every three years, while 38% said every year. tripp also asked how much of the data on volumes should be used, to which 74% of respondents either said 100% or at least 90%. tripp said that in reality, a true blank sheet optimisation had never been done because the industry assumed the current position of rail ramps across the country was mainly fixed. they were therefore not included in the analysis. on the point about using 100% of the data available for a network optimisation analysis, tripp said no oem in the us even had a 20% share of the total available data. “it is only their own data they are using, so we are doing this optimisation [when we do it] with low levels of data,” he said. tripp said the assumption that rail ramps were fixed needed to be reassessed, not least because they were established around 40-50 years ago and population centres had shifted since then, making last mile truck deliveries from those ramps less efficient. the key questions, tripp said, were whether any savings justified the cost of a move and whether all of the customers were being taken into consideration. railroads conducting their own location analysis often exclude potential customer savings, he suggested. steve tripp from icl systems suggested that despite belief by logistics providers to the contrary, the finished vehicle logistics sector had never optimised its entire network in an ideal network optimisation for the benefit of the outbound sector in the us as a whole, all the oems, service providersand dealers should be involved, and perhaps even the aftermarket, tripp suggested. it should also include all the fixed and variable costs, including equipment. that would be a huge and difficult task with a lot of obstacles to overcome, he admitted, but the potential savings and better use of assets made it worth considering. given that the total cost of vehicle logistics in north america is around $10 billion annually, tripp estimated, saving just 1% would yield $100m for reinvestment. it could even provide an answer to the truck driver shortage by removing unnecessary and lengthy road trips through better allocation of rail ramps. positive signs while the industry awaits that ideal scenario, there are initiatives to improve rail links already underway. on the theme of being connected and collaborative, north american rail provider bnsf has been working with terminal services provider pasha automotive services to develop a vehicle storage yard and rail facility near san diego port. the move to develop an existing rail facility and 5.25-acre tank yard next to pasha’s vehicle processing facility was needed because of increased inbound volumes from mexico, which have pushed the national city marine terminal (ncmt) to capacity. the san diego area has strict windows for multi-level cargo train access due to heavy passenger train traffic and the ncmt rail ladder has a capacity of 142 multi-level rail cars, according to dave fleenor, assistant vice-president, automotive sales and marketing at bnsf. added to this, there was previously little space close to ncmt for the storage of empty rail cars to replenish the ncmt rail ladder, he said. bnsf identified the older national city rail terminal, just one mile from ncmt, as an opportunity. that facility had been underused for several years and was unable to support multi-level rail cars, so bnsf replaced the aging track, installed new switches and now has capacity for 45-50 multi-level rail cars. fleenor said the redevelopment took less than a year to complete and the yard was connected with the rest of pasha’s facilities. brian mason, vice-president of business development and administration at pasha, explained that the storage yard facility, which was due to be completed during april, was next to its truck centre in otay mesa. it has 930 sq.m of processing capacity and 3,000 parking spaces. another example of collaboration between the oems, rail providers and truck sector to improve efficiency was outlined by mark anderson, president and coo of united road. following a meeting in atlanta in 2016 with rail providers and oems that was overseen by the aiag, the parties set up a working group with a range of goals, including how to reduce dwell time and increase velo

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Registry Domain ID: 1573986200_DOMAIN_COM-VRSN
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Registrar URL: http://www.godaddy.com
Updated Date: 2015-11-02T10:20:29Z
Creation Date: 2009-10-29T23:13:53Z
Registry Expiry Date: 2020-10-29T23:13:53Z
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