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ecg.qxd 24/11/06 12:21 pm Page 92 A DIALOGUE CONFERENCE REPORT OF THE DEAF
The recent annual conference of the European Car-Transport Group of
Interest ECG , focused on flows and productivity. The increasing cost and
price pressure on both OEMs and logistics service providers is a major
concern which must soon be addressed. Brussels-based ECG, a
non-profit-making organisation Produc tivity must improve to address
dwindling founded in 1997, groups together the 70 leading margins, said
ECG president, Kay Hanns Ewaldsen. This European vehicle logistics
companies. Its members can only happen through a joint effort between OEMs
and operate in the distribution, transportation, handling, logistics
service providers. preparation and processing of finished vehicles The
outbound automotive logistics sector is being hard throughout Europe.
ECG's primary aim is to represent the hit by the combined effect of two
factors. Firstly, the interests of the sector to the various EU
institutions, but it continuous pressure on rates, due to the stiff
competition also facilitates collaboration between member companies
between car manufacturers and its consequent drip- and assists them in the
development of areas such as down to the logistics operators. Secondly, the
constant Training, PR, Quality and Procurement. rise in service providers'
direct costs due to the increased This year's ECG conference, held in
Vienna, had as its prices of fuel, energy and personnel. Add to this the
fact theme `Flows and Productivity'. The shift in car production that the
logistics process has become significantly more away from traditional
Western European nations towards complex with fewer opportunities to
optimise traffic flows the East and South-East of the continent, and the
over- and cost efficiency due to shorter lead times and irregular capacity
of vehicle assembly plants, particularly in Central volume flows. The end
result is a vicious circle which has and Western Europe, results in
unbalanced flows and already seen the demise of some operators. Small
causes difficulties in the strategic development of companies are
disappearing, said Frits Mehrtens, ECG vice president. Either that or they
are leaving the car-carrying efficient, long-distance logistics. The
building of business. production plants in the new member-states of the EU
There is a pan-European shortage of rail wagons, car may well have the
effect of reversing the major streams transporters and ships, particularly
along the East/West from being primarily West to East into becoming East to
axis. The very real need for fleet renewal is being stymied West. by the
operators' inability to generate the necessary The prime requirements of
the OEMs can be summed investment funding. The situation is such that
OEMs, up as speed, damage reduction, cost reduction and the unable to buy
from the logistics providers because of lack protection of the brand
promise. The finished vehicle of availability, are resorting to the spot
market for logistics sector is beset, however, by consistent cost and
transpor tation, where prices are anything up to 100 price pressure which
inhibits its ability to combat rising percent higher. This is evidence of
short term low-price labour and fuel costs, resulting in declining margins
and tactics to the detriment of a long term quality strategy. an inability
to fund much-needed investment in assets. 92
Table of Contents for the Digital Edition of AutoMOTIVE 5
Editors Note
News
Here For The Long Haul
Halewood. Rebirth of a Car Plant
Safety First
Focus on Flexibility
A Prophet Without Honour?
Chrysler Cuts It Four Ways
A MINI For All Reasons
Porsche Plans Continuous Logistics Improvement
Flawless, Consistent Execution
Ford's European Supplier Parks Deliver Lean Manufacturing Efficiencies
Cheap and Cheerful
Onwards and Upwards
Schrader and Siemens Electronics Assembly Systems Take the Pressure
No Faults Forward
A Long Way From Wheelbarrows and Bath Tubs
A New Era in US/Japanese Cooperation
A Dialogue of the Deaf
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