ABSTRACT
Over the past decades, the landscape of the automotive industry has changed considerably. Today (2021), emerging economies account for half of world’s automobile production – compared to around 10% in 2000 – and we have seen an enormous shift in the configuration of supply chains, as suppliers follow manufacturers to emerging markets and compete with domestic suppliers – a phenomenon known as “follow sourcing.” While most parts are sourced locally in these emerging nations, considerable amounts are shipped in by containers from suppliers’ plants located in advanced overseas economies. To bring down transport costs and ensure the reliability of these pipelines, car manufacturers rely on parts consolidation centres (PCCs), that is, cross-docking facilities, where parts are sorted and packed in containers according to their final destinations. Through an in-depth case study on the Seine Valley corridor, this chapter aims to reveal the logistics operations carried out at PCCs, which offer opportunities to modernize freight flows through innovation and new technologies (such as hybrid and electric vehicles). In addition, this chapter will examine the continued prevalence of low value-added logistics operations, as well as the overall instability of demand.
