How visibility transforms automotive supply chains

From the approximately 30,000 parts in the average car, ranging from basic fasteners to sophisticated computer chips, the automotive supply chain is highly intricate. Production of those parts can be spread across multiple regions, and they have to travel a highly complex and interconnected supply chain. With the demand of just-in-time (JIT) production, these parts often cross borders and undergo multiple handoffs. Because of this, successfully implementing JIT production is heavily included by the consistency and standardization of component needs.

Original equipment manufacturers (OEMs) with highly diverse vehicle models often experience variability in part requirements, leading to whipsaw demand patterns—even with firm contractual periods—that can strain supplier networks. Adding to this complexity is the rise in new automotive technology, which has the potential to make automotive supply chains even more complex, further highlighting the need for end-to-end visibility.

Despite this need, much of the automotive industry still relies on manual processes, which are slow and prone to errors. Many companies also lack a complete view of their supply chain beyond their immediate suppliers.

Outdated infrastructure and legacy solutions are no longer enough to provide the detailed and granular level of visibility and data needed to minimize the risk of disruptions in the automotive industry. To remain competitive and optimize inbound operations, end-to-end visibility and a dynamic network are critical, especially in an environment characterized by fluctuating consumer demand and uncertainty.  

Recognizing risks

Even seemingly minor disruptions and downtime in an automotive supply chain can result in millions of dollars of loss. Lost production or the need for expedited shipping via air freight or private charters to maintain material flow and avoid slowdowns often adds significant costs that cut into already thin margins. 

Effectively managing tight production schedules, frequent shipments, and cross-border flows increasingly requires the adoption of advanced technology. Implementing a transportation management system (TMS), along with a managed transportation partner, can optimize operations and proactively mitigate disruptions.

For example, if a truck carrying engine components is stuck in traffic and will miss the assembly plant’s delivery window, a TMS can send a real-time exception management alert. This notification lets everyone know they need to pivot to an alternative solution. That might mean re-routing a nearby truck or adjusting sequencing in the plant to avoid costly line stoppages. Taking quick action enables shippers to proactively address issues before they impact production​. 

Uber Freight solutions, like Powerloop and TMS, can help automotive customers gain reliable and consistent capacity, the agility to adapt their networks when demand fluctuates, and enhanced control through real-time visibility. 

Uber Freight’s TMS provides live location tracking, giving shippers real-time insight, including active loads across modes and status updates. With a significant percentage of full-truckload shipments receiving location updates every 15 minutes, automotive manufacturers can leverage this visibility to transition from reactive to proactive risk management. 

Additionally, Uber Freight’s Consulting team can use technology and data to design and map out your end-to-end supply chain. This helps optimize your facilities and operations to transform processes and material flow, providing your team with strategies to effectively mitigate risk.  

Achieving a comprehensive view of your supply chain

Today’s supply chains are already rich with data, but that data doesn’t always come together in one location. To make sense of all of this information, companies need a more comprehensive view of their supply chain to centralize and consolidate various data points into a single platform, offering real-time data and full visibility into shipments.  

Uber Freight’s Control Tower—a core module within the Uber Freight TMS—helps manufacturers proactively flag delays and forecast gaps in real-time, such as late pickups or freight being held up at the border. It then notifies key stakeholders, eliminating the need for time-intensive manual tracking efforts, while adapting at lower cost levels. 

API integrations can make sharing data even easier. These allow shippers to connect their enterprise resource planning software, warehouse management systems, or third-party transportation management systems to automatically receive live data from a carrier or logistics provider. This streamlines information sharing and improves visibility. 

With Uber Freight’s API, we can directly connect to customers and logistics providers, ensuring that as customers shift their network and evolve, they aren’t continuously shifting their IT connections or managing multiple systems. 

Direct connections also increase agility. Within Uber Freight’s TMS, if a manufacturer suddenly requires 10 extra truckloads of components because production ramped up, an integrated system can automatically ping Uber Freight’s API for live rates and book the trucks within minutes​ to keep supply chains moving. 

Eliminating supply chain gaps

Having a comprehensive view of the supply chain not only enables tactical, day-to-day decisions about freight in transit but also informs overall network design, identifying any gaps. A clear line of sight into multiple tiers of suppliers is especially beneficial if manufacturers experience sudden changes to production plans, such as a new model launch that requires reconfiguring transportation plans quickly or evolving trade policies. 

AI and Internet of Things (IoT) devices are also increasing visibility, aiding in demand forecasting and inventory management. These can help automotive manufacturers engineer more efficient supply chains by strategically planning routes and reducing the distance traveled, which can help mitigate risk while lowering costs. 

Additionally, parts, components, and finished vehicles often cross borders, which are known for low load visibility without proper management. 

Uber Freight has integrated cross-border logistics support and experts in customs operations to navigate the complexities of cross-border operations. From customs clearance to intermodal transportation and delivery, Uber Freight’s end-to-end visibility tracks and monitors the flow of goods and critical information. Suppliers have real-time information on the location and status of their components and materials, providing enhanced control as they move through the supply chain. 

For example, imagine a part coming from Mexico to a plant via intermodal transportation. It has a total lead time of 15 days, but on day 14, it’s now needed within the next 7 days. Uber Freight’s software provides real-time visibility and agility to intercept the shipment and execute cost-effective recovery processes. This capability minimizes line shutdowns, reduces the need for expensive expedites, and fosters greater operational stability, reducing stress and friction, while improving automotive networks. 

How Uber Freight enhances visibility within the automotive supply chain 

Uber Freight is expanding its investment in the automotive sector. This includes enhancing AI-driven optimization to streamline complex logistics processes, predict potential disruptions, and recommend proactive solutions in real-time. 

Uber Freight is also strengthening cross-border logistics capabilities by investing in infrastructure and technology to ensure seamless operations. A critical component of this is providing richer data visibility, offering granular, real-time insights into their supply chain. This enhanced visibility and dynamic adaptability empower suppliers to make faster and smarter decisions, ultimately fostering greater resilience and agility throughout their operations.

Connect with an automotive expert today to learn more about Uber Freight’s visibility and Control Tower solutions for an around-the-clock, real-time, and holistic view of your freight.