Editor's blog: The most important insights from day two of ALSC Global

25 September

Market outlook and inbound logistics under pressure

Daniel Harrison, automotive analyst at Automotive Logistics, broke down some of the details of our Automotive Inbound Logistics Survey 2025.

Key takeaways

• Cost pressures dominate: OEMs are pushing LSPs to renegotiate rates, squeezing margins and raising questions about service quality.

• Tariffs fuel disruption: Billions absorbed by OEMs and suppliers are only a stopgap. Price rises are expected in late 2025.

• “Wait and see” won’t last: Companies are holding out for clarity, but structural changes such as nearshoring will be unavoidable.

• Short-term gloom, long-term optimism: Confidence dips for the next six months, but expectations brighten over three years.

• Digitalisation and partnerships essential: Accelerating tech adoption and collaboration emerged as the clearest industry recommendations.

• Fragmentation defines the sector: Both inbound and FVL remain highly fragmented, keeping margins thin and limiting investment.

Discussion points on core tensions

Tariff paralysis vs. long-term planning: Panellists noted OEMs are absorbing billions in tariff costs, a strategy that cannot last. Rising vehicle prices could dampen consumer demand, reducing logistics volumes.

Investment blocked by rising costs: Ironically, tariffs designed to encourage localisation raise input costs for robotics and tooling, slowing the very investments they are meant to incentivise.

EVs reshape inbound flows: Harrison pointed out that EV adoption will gradually flatten inbound demand, with shorter supply chains and fewer components required compared to ICE vehicles.

Fragmentation challenge: The market report quantified just how fragmented inbound and finished vehicle logistics remain. No player holds more than a low single-digit share, reinforcing cost sensitivity and low resilience across the industry.

Quotes of the session

“Tariffs are costing OEMs and suppliers billions. Absorbing those costs is only a temporary measure—price rises and structural changes are inevitable.” – Daniel Harrison, Automotive Logistics

“The next six months look tough, but the industry sees light ahead. Modest growth is expected, even if pre-Covid volumes won’t return until 2030.” – Daniel Harrison, Automotive Logistics

Editor’s note

The session confirmed that the automotive logistics sector is walking a fine line between absorbing shocks and planning for transformation. Harrison’s analysis underlines that fragmentation and tariffs are twin forces eroding margins, yet they also create openings for digitalisation, new trade routes, and deeper partnerships. For readers who want to dive into the full dataset, download the Automotive Inbound Logistics Survey 2025. The real challenge now is whether companies can move from “wait and see” to decisive action before costs and uncertainty drag them under.

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24 September

Parcel and LTL: navigating rising costs and new competition

Mike Erickson (AFMS) unpacks how automotive shippers can fight back against spiralling parcel and LTL charges – and what Amazon’s entry means for FedEx and UPS.

Key takeaways

• Parcel and LTL costs are climbing fast, with FedEx and UPS pushing through base rate increases of around 6% and accessorial surcharges rising by 7–20%.

• Hidden fees now make up 60% of many shippers’ bills, with new charges like “audit fees” and “dimensional penalties” squeezing margins.

• Amazon has officially entered the parcel delivery market, offering discounts and free accessorials to win business directly from UPS and FedEx.

• Automotive shippers face surcharges up to $1,300 for oversized parts like bumpers or mufflers, a jump of more than 2,000% in less than a decade.

• Benchmarking contracts is critical: Erickson cited Honda saving $16m annually by renegotiating dim weight and address correction charges.

• LTL contracts are equally ripe for optimisation, with many carriers making 20–30% margins where 5–7% would be more reasonable.

Discussion points:

• Amazon shakes up a duopoly: For the first time, automotive shippers are seeing direct Amazon proposals to take UPS and FedEx parcel business. Erickson called this a “game changer” that will force incumbents to rethink pricing.

• Accessorials eat profits: Fees for delivery area surcharges (DAS), residential drops and fuel now exceed base rates. Erickson urged OEMs and suppliers to fight hardest on these negotiable items.

• Oversized parts penalty: FedEx and UPS don’t want non-conveyable freight. Shipments of mufflers or bumpers have gone from $55 to $1,300 per unit since 2015 – a deliberate deterrent.

• Contract opacity: Erickson highlighted how FedEx and UPS sales reps are now incentivised on profit margin, not volume, putting their interests at odds with shippers’. Benchmarking is the only way to cut through the noise.

• LTL blind spots: With more than 100 regional carriers in play, many automotive firms are paying wildly inconsistent rates. A disciplined review of origin–destination flows and margins can uncover double-digit savings.

Quotes of the session:

“Amazon is offering discounts and free accessorials. For the first time, they are directly going after UPS and FedEx accounts.” – Mike Erickson, AFMS

“Oversized fees have jumped 2,000% in less than a decade. A muffler that cost $55 to ship in 2015 now costs $1,300.” – Mike Erickson, AFMS

Editor’s takeaway:

Erickson’s presentation pulled no punches: parcel and LTL contracts are riddled with hidden costs that automotive shippers ignore at their peril. The standout message was that benchmarking is power. Whether it’s negotiating a better dim factor, waiving address correction fees, or clawing back oversized surcharges, the difference runs into millions – pure margin for OEMs and suppliers.

Perhaps the biggest headline, though, is Amazon’s entry. A duopoly long resistant to disruption is now facing a well-capitalised rival willing to undercut on accessorials. For automotive logistics leaders, this isn’t just a chance to shave costs – it’s leverage in a negotiation landscape that has tilted too far against shippers.

Smart moves: accelerating automation across the supply chain

Henkel, GM, Ryder and Slip Robotics share the drivers, challenges and future of warehouse and logistics automation

Key takeaways:

• ROI is being reshaped by labour costs, space savings, and the shift from CapEx to OpEx models such as robots-as-a-service.

• Ryder has scaled automation spend from $10m to nearly $200m a year, diversifying across AMRs, robotic picking, autonomous forklifts and ASRS

• Slip Robotics sees workflow redesign as key: automation must be faster, not just one-for-one labour replacement

• Packaging remains a bottleneck: without early design alignment, container specs can derail automation.

• Software integration and orchestration are emerging as the hardest barriers – stitching together multiple OEM systems, WMS and robotics providers.

Discussion points on core tensions:

ROI vs hidden costs:  Automation cases are easier to justify as labour costs rise. Yet panellists warned of hidden integration costs and the risks of misjudging technology fit. The rise of robots-as-a-service is shifting how companies model payback, often accelerating approvals.

Integration vs orchestration: Panellists stressed that deploying four or more automation systems in one warehouse is already common. The challenge isn’t hardware—it’s connecting the data. Companies are struggling with whether orchestration should sit with WMS, integrators, 3PLs, or robotics providers.

Quotes of the session:

“ROI is now a little bit easier to generate because labour costs have doubled in five years.” – Todd Morley, Henkel

“Automation isn’t about one-to-one labour replacement. It’s about rethinking workflows and moving parts 50% faster.” – Chris Smith, Slip Robotics

Editor’s takeaway

The panel captured a sector at a tipping point: hardware is no longer the limiting factor, integration is. ROI has shifted from being a narrow cost equation to a multi-dimensional calculation that includes labour, safety, space, and sustainability. But the message was clear: automation without orchestration is chaos. The winners will be those who design packaging and processes up front, standardise across networks, and use robotics not to copy labour but to redesign the flow of goods.

24 September

Right part, right time, right cost: Optimising aftersales logistics

James Parker Jr. (Stellantis), Sean McGirr (Mercedes-Benz USA), Dan Schwartz (Rivian) and Frank Sobotka (DSV Air & Sea) explored how OEMs and providers are rethinking aftersales logistics to balance cost, agility and customer experience.

Key takeaways:

• Agility is the new benchmark. Stellantis is shifting from fixed-cost, once-daily dedicated delivery to dynamic carrier solutions to support aftermarket growth.

• Customer experience trumps cost-cutting. Mercedes-Benz treats logistics expenses as investments in customer loyalty, not just bottom-line hits.

• Predictive insights are game-changing. Rivian leverages ownership of service centres to pre-position parts and shorten repair times, creating an “Amazon-like” feel for EV customers.

• Collaboration beats transactions. DSV called for OEMs to engage providers earlier, share analytics, and move beyond one-year bidding cycles to long-term partnerships.

• Automation is a balancing act. Stellantis and DSV highlighted the need to blend digital tools, AI and physical automation without losing resilience to power or system disruptions.

• Forecasting is precision work. Panelists stressed learning from sectors like perishables, where demand planning is daily, not quarterly, to reduce costly inventory swings.

Discussion points on core tensions:

• Aftermarket as a growth driver. Stellantis emphasised that the independent aftermarket is a $200bn North American opportunity. Failing to adapt networks for this shift risks long-term losses.

• Flexibility vs. cost pressure. Logistics providers warned that constant disruptions—from trade shifts to weather events—make rigid contracts unworkable. Long-term partnerships are seen as the only way to deliver reliability without spiralling costs.

• Innovation vs. legacy habits. Drone delivery pilots, drop-box networks and predictive analytics are already proving their worth, but panellists noted industry reluctance to abandon legacy practices holding back adoption.

• Customer-first mindset. Mercedes-Benz pushed back against the notion of aftersales as an “afterthought,” arguing poor service experiences can destroy the customer journey, regardless of product quality.

Quotes of the session:

“We don’t want to be fully automated, but we do want the balance between technology and manual processes.” – James Parker Jr., Stellantis

“Cost isn’t just an expense. It’s an investment in the customer experience.” – Sean McGirr, Mercedes-Benz USA

Editor’s takeaway:

From Stellantis’ consolidation hubs to Rivian’s predictive stocking, OEMs are treating service parts as strategic levers for customer loyalty. The debate also underlined a structural shift: transactional procurement is losing relevance as volatility becomes the norm. Providers like DSV see themselves as co-designers of future networks, not just carriers. The challenge ahead is whether OEMs will truly let go of legacy cost-chasing habits to embrace flexible, tech-enabled and partnership-driven aftersales ecosystems.

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24 September

Scaling up electric excellence: Building Rivian’s service parts network

Dan Schwartz, senior director, Global Distribution Operations at Rivian, detailed the company’s journey building a service parts and aftersales logistics network from scratch, balancing agility, customer expectations and EV-specific challenges.

Key takeaways:

• Rivian has built its service parts organisation from the ground up over the past 4.5 years, with a network now spanning California, Kentucky, New Jersey and more, expanding to Fort Worth in 2026.

• The EV-only product mix means fewer small, high-volume ICE service parts but far more bulky, high-value items like doors and 2,000lb batteries – demanding new logistics approaches.

• Rivian’s direct-to-consumer and service-centre model requires shipping to more than 100,000 delivery points, alongside 500 collision partners and 90 service centres.

• Proximity to customers isn’t just about logistics cost savings: it reduces downtime, prevents bottlenecks at service centres and protects brand reputation.

• Partnerships with logistics providers are critical – Rivian seeks solution-driven collaborations rather than lowest-cost contracts.

• Small, “everyday tech” wins matter: Rivian uses built-in AI tools in Microsoft and Google suites to boost efficiency without heavy upfront investment.

Discussion points:

• Agility vs cost efficiency: Schwartz stressed that agility trumps pure cost savings, as Rivian must react quickly to changing demand patterns and customer needs. This mirrors a wider shift in logistics towards responsiveness over rigid optimisation.

• Creativity vs tradition: With many staff hired from Amazon and retail backgrounds, Rivian is experimenting with fulfilment models outside the traditional OEM playbook. The audience takeaway: old assumptions about service parts distribution are ripe for reinvention.

• Battery logistics challenges: High-voltage batteries, which are heavy and tightly regulated, are forcing OEMs to rethink their networks. Rivian’s regionalised remanufacturing strategy shows how localisation can cut costs and risks.

Quotes of the session:

“It’s much easier to ship the nuts, bolts and screws than it is to ship the doors, the batteries, all those things that come with more complications.” – Dan Schwartz, Rivian

“The agility piece is absolutely huge… our business is changing daily, weekly, monthly. That requires completely different networks.” – Dan Schwartz, Rivian

Editor’s takeaway:

Rivian is testing the limits of what a service parts network can look like in the EV era. The company is less concerned with mimicking traditional OEM models and more focused on Amazon-like customer experiences, fast fulfilment and creative solutions. The lesson for the industry is that agility, partnerships and localised remanufacturing may matter more than squeezing the last penny out of transport costs. If Rivian succeeds, it won’t just redefine EV ownership expectations – it could set a new benchmark for aftersales logistics.

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 24 September

Ensuring supply chain integrity

Tanya Hayes Bolden (AIAG), Fred Gersdorff (GM), and Rachel Kook (Stellantis) explore how OEMs are uniting on forced labour due diligence and the wider risks reshaping compliance.

Key takeaways:

• Forced labour is a supply chain showstopper: Under UFLPA rules, imports are presumed guilty until proven innocent, with just 30 days to provide evidence – or face destroyed or returned goods.
• OEMs are collaborating, not competing: Six carmakers – GM, Stellantis, Ford, Honda, Nissan, Toyota – are aligned under AIAG’s Forced Labour Intelligence Program, giving suppliers a common framework.
• Due diligence goes deep: The industry’s new Due Diligence Reporting Template (DDRT) demands visibility to raw materials, not just tier ones, and flags risks like prison labour or indirect contractors.
• Technology is non-negotiable: Tools from providers like Altana, Resolink and NQC, already used by US Customs, are now available via an AIAG marketplace at discounted rates for suppliers.
• Reputational risk rivals legal risk: Speakers warned of stock hits and headlines for OEMs caught out on human rights violations, reinforcing why this is a C-suite issue.
• This is just the beginning: Mid-2026 will see a mass rollout of DDRT reporting across supply bases, with wider ESG regulations – from deforestation to battery minerals – already on the horizon.

Discussion points on core tensions:

• Compliance clock vs. supply chain reality: With just 30 days to prove goods are free of forced labour, panellists highlighted the operational chaos and cost risks for suppliers without deep-tier visibility.
• Standardisation vs. supplier flexibility: OEMs stressed they won’t dictate which providers suppliers must use, but a shared template and marketplace approach aims to reduce duplication and cost.
• Ethics vs. dependency: Pulling out of low-cost countries isn’t simple – some regions rely heavily on practices flagged as forced or child labour. Speakers admitted that immediate compliance is unrealistic, but the reputational risk of inaction is greater.
• Technology vs. trust: While AI and mapping tools can flag red zones, OEMs cautioned that suppliers still need to validate practices, especially where contract labour or indirect sourcing obscures risks.

Quotes of the session:

"This is not just about regulators. NGOs and media are watching – and one headline can hit stock prices as hard as a legal penalty.” – Tanya Hayes Bolden, AIAG

Editor’s takeaway:

This session underlined that forced labour compliance is no longer niche, it’s existential. The AIAG initiative shows rare OEM alignment, but the test will be whether suppliers embrace shared tools and reporting fast enough to avoid being blindsided by detentions, reputational damage, or lost contracts. What was clear is that supply chain integrity is now a competitive edge, those who invest in visibility and proof will keep the wheels turning.

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24 September

Cracking the code: Data-driven control towers and decision-making

Control towers promise end-to-end visibility, faster response and AI-driven intelligence, but panellists warned that without clean data and clear ROI, digital twins risk becoming digital illusions.

Key takeaways:

• Actionable data matters more than volume. A control tower that consolidates information is useless unless the insights are targeted, accurate and acted upon.
• Flexibility is the differentiator. Predictive analytics and AI are being layered into systems to anticipate detention, demurrage, or rail delays, giving shippers options to reroute or buffer stock.
• Integration remains the hardest problem. Legacy systems, acquisitions and disparate supplier networks make harmonisation difficult. Incentives like faster payments are key to supplier adoption.
• Agentic AI is moving from hype to execution. C.H. Robinson has launched an “always-on logistics planner” to automate 50% of customer and carrier queries within 18 months.
• Digital twins need clean foundations. Without trusted and cleansed data, scenario planning will misfire. The road to 2030 twins runs through today’s painful data hygiene work.

Core tensions and discussion points:

Build vs. buy: Dorothy Ashford stressed that in-house systems can help OEMs gain control, but smaller firms often lack the scale to justify investment. Outsourcing works best when providers offer transparency and easy exits, not lock-ins

Process vs. technology: Cutshaw warned against skipping over process standardisation. A tech deployment without 80% process alignment is doomed to complexity and wasted automation effort

Speed vs. quality: Drawing on her Amazon background, Fietsam contrasted automotive’s safety-driven PDCA culture with retail’s obsession with delivery speed. Her challenge: define the real problem—are you solving for speed or quality?

AI opportunity vs. security risk: The lure of agentic AI is clear—automating freight audit, closing tickets, orchestrating decisions—but panellists admitted data security is the table-stakes bottleneck. A single breach could derail momentum

Quotes of the session:

"Either your control tower gives you data you can act on, or it’s just noise.” – Skotti Fietsam, Accuride

"Agentic AI is not about replacing people, it’s about unlocking them.” – Chris Cutshaw, C.H. Robinson

Editor’s note:

This was one of the most concrete discussions of the event: less about abstract digital futures, more about what companies are building now and where they keep getting stuck. The message was blunt: you can’t skip the plumbing. Control towers, AI and digital twins will fail without harmonised, trusted data and clear ROI. Yet the first real deployments of agentic AI in logistics are happening. The code may not be cracked yet, but the lock is starting to turn.

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24 September

Packaging strategies under pressure

Magna’s Bridget Grewal highlights how packaging efficiency is moving centre stage in automotive supply chains, with data, standardisation and collaboration driving results.

Key takeaways:

• Packaging is no longer “just a box” – it is a strategic lever for reducing logistics costs and damage rates while supporting sustainability.

• Standardisation across suppliers and regions helps eliminate waste and complexity, but OEM-specific demands often hinder alignment.

• Data-driven packaging decisions are becoming critical, with visibility tools identifying inefficiencies across networks.

• Collaboration with logistics providers and packaging specialists accelerates problem-solving and continuous improvement.

• Sustainability targets, including reducing single-use plastics and optimising returnable packaging, are rising up the agenda.

• The packaging workforce is evolving, with skills in analytics, systems thinking and design in demand.

Discussion points on core tensions:

• Standardisation vs. customisation: Grewal underlined that harmonising packaging formats reduces waste, but the industry still struggles with OEM-driven exceptions. The push-and-pull between efficiency and bespoke requirements remains unresolved.

• Digitalisation and visibility: While technology is helping to track damage and bottlenecks, speakers acknowledged that data is often fragmented. The opportunity lies in pooling insights across the ecosystem.

• Cost vs. sustainability: Moving to more returnable and recyclable materials improves environmental outcomes, but upfront investment remains a sticking point for many suppliers. The session highlighted that business cases must link packaging to total landed cost savings.

Quotes of the session:

Packaging has always been undervalued – but it is the one thing that touches every part, every shipment and every mile in the supply chain.” – Bridget Grewal, Magna International 

We cannot treat packaging as an afterthought. It is data-driven, it is strategic, and it is central to meeting cost and sustainability goals.” – Bridget Grewal, Magna International

Editor’s takeaway:

Packaging emerged here not as a back-office detail but as a frontline battleground for cost, quality and sustainability. Grewal made clear that the industry cannot afford to treat it as a secondary concern. Standardisation and data are the tools, but collaboration and executive-level recognition are what will turn packaging from a pain point into a competitive advantage.

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24 September

Building resilient networks across borders: BMW, CNW and Tri-National share strategies   

Key takeaways:

• Flexibility beats rigidity: BMW’s Dr Ulrich Wieland stressed that resilient networks need adaptable processes, not static playbooks.

• Speed as a service: CNW’s Ron Glowinsky underlined that time-critical logistics must be built into the network, not bolted on.

• Collaboration counts: Mary Helen Montalvo of Tri-National called for stronger OEM–3PL partnerships to balance risk and capacity.

• Visibility gaps remain: Speakers admitted that despite digital advances, cross-border bottlenecks still lack real-time transparency.

• Local vs global tension: The panel explored the push and pull between regionalisation and maintaining global sourcing strategies.

Discussion points on core tensions:

• Resilience vs cost pressure: Panellists warned that while boards demand resilience, procurement still prioritises the cheapest lane. This disconnect risks hollowing out long-term supply security.

• Technology vs human insight: Digital platforms help track and predict cross-border flows, but speakers cautioned that customs brokers and local experts remain indispensable in resolving real-world disruptions.

• Regionalisation vs globalisation: Debate circled around whether the shift to nearshoring will truly reduce dependency on vulnerable global networks, or simply create new regional chokepoints.

Quotes of the session:

"Resilience is not about building walls. It is about designing flows that can bend without breaking.” – Dr Ulrich Wieland, BMW 

• • Editor’s takeaway:
  •  This session revealed a frank tension in cross-border logistics: the desire for agility colliding with entrenched cost-cutting habits. BMW, CNW and Tri-National painted a picture of networks under constant strain, where resilience depends less on protectionism and more on collaboration, visibility and speed. The lesson is clear: agility must be designed in, not bolted on after the fact.

24 September

Cars by number: Vehicle visibility from order to delivery

John Rich (Mazda North America) and Anthony Butler (Cognosos) set out how AI, data architectures and real-time tracking can transform finished vehicle logistics.

Key takeaways:

• Data is the new engine: “In God we trust, all others must bring data,” said Mazda’s John Rich. Reliable, structured data underpins every AI and analytics advance in logistics.

• From Excel to agentic mesh: Spreadsheets remain pervasive, but the next leap is “agentic mesh” – AI agents working in teams to speed decisions from days to minutes.

• Foundations before flash: Mazda stressed that scalable AI depends on modern data architectures, from cloud-hybrid models to delta sharing protocols, enabling secure interoperability without duplication.

• Cost of mistakes is huge: Cognosos highlighted that a single mis-shipped vehicle can cost $15,000–$20,000, wiping out margins on dozens of cars. Outlier detection and alerts are vital.

• APIs unlock scalability: Butler warned against vendor lock-in, urging OEMs to demand robust APIs to integrate new tracking tech into billion-dollar operations seamlessly.

• Human in the loop remains critical: Both panellists agreed AI should augment, not replace, operational decision-making, keeping managers in control of outcomes.

Discussion points on core tensions

• AI ambition vs. industry reality: Panellists acknowledged that concepts like agentic mesh and joint embedding predictive architecture could redefine forecasting, but few deployments exist today. The gap between hype and implementation remains wide.

• Sharing vs. security: Modern protocols make secure data sharing possible, yet legacy systems, vendor lock-in and cyber risks still slow collaboration. The tension lies between embracing interoperability and protecting proprietary systems.

• Innovation vs. integration: Startups like Cognosos bring cutting-edge solutions, but Butler cautioned that scalability only comes by fitting into OEM operations – not forcing them to adapt to the tech.

Quotes of the session:

"Most people today, when they think of AI, think of ChatGPT. But the real future is agentic mesh – a team of AI agents making decisions in minutes, not days.” – John Rich, Mazda North America

"If one car gets miss-shipped, it can cost $20,000. That wipes out the profit from 20–40 vehicles in a day. That’s why anomaly detection matters.” – Anthony Butler, Cognosos

Editor’s takeaway:

This session challenged the idea that finished vehicle logistics lags behind. Rich and Butler showed that AI, real-time tracking and smarter data sharing are already reshaping vehicle flows. The lesson was blunt: without solid data foundations, AI is just smoke and mirrors; without APIs and interoperability, new tools stall at the gate. For an industry still haunted by the cost of outliers and inefficiencies, the opportunity is clear – build trust in the data, keep humans in the loop, and let technology do the heavy lifting.

24 September

OEMs push packaging efficiency to cut costs and emissions

Packaging is no longer an afterthought in automotive logistics. At ALSC Global, leaders from GM, Nissan, Toyota and Wellplast highlight how standardisation, early design input and sustainable materials are turning packaging into a source of efficiency and resilience.

Key takeaways: 

Early design involvement is critical: OEMs stressed the need to involve packaging engineers upfront with R&D and design teams to avoid costly inefficiencies later.Standardisation unlocks scale: Consistent packaging specs across plants and regions help improve return loops, automation compatibility and long-term resilience. 

Packaging as a cost lever: All panelists agreed packaging is no longer a “hidden” cost; it directly impacts transport budgets, warehousing and overall supply chain efficiency.

Sustainability is shaping packaging choices: Lighter, recycled and reusable materials, alongside 3D-printed prototypes, are emerging as sustainable solutions.

Packaging drives transport efficiency: Nissan showed how redesigning racks and footprints can cut trailer needs by 30–40%, reducing costs and emissions.Collaboration across the chain: From suppliers to logistics providers, packaging efficiency depends on shared data, joint design and openness to new technologies such as RFID and robotics.

Discussion points: 

Balancing design and logistics efficiency: Speakers highlighted the tension between vehicle design ambitions and packaging realities. For example, Nissan noted how larger, more complex parts like headlamps can dramatically reduce packing density, increasing transport costs and carbon emissions. This raised the question of how early packaging input can shape design choices without compromising aesthetics or functionality.

Sustainability versus cost in packaging innovation: The panel debated whether lighter, recycled and reusable materials, or advanced concepts like RFID-enabled tracking and 3D printing, can deliver both environmental and financial benefits. While sustainability goals are driving change, the challenge remains ensuring that greener solutions don’t add prohibitive cost or complexity to already strained logistics operations.

Quotes of the session: 

"Designers are focused on creating beautiful parts, but they don’t always see how that impacts transport efficiency for the next five or seven years of production. Our job is to bring that feedback early, so design and logistics work together.” - Iván Dávila, Nissan Group of the Americas

"Packaging is no longer just a box around the part. It is a lever for cost, efficiency and resilience across the entire supply chain.” - Brad Jorgenson, Toyota Motor North America

Editor's takeaway: 

Packaging has stepped firmly into the strategic spotlight. The panel with GM, Nissan, Toyota and Wellplast showed that decisions once treated as a technical afterthought now have a direct bearing on transport efficiency, emissions, and cost competitiveness. Nissan demonstrated how redesigning racks and footprints can cut trailer requirements by up to 40%, while GM underlined that sustainable packaging only succeeds if it also drives efficiency. The message was clear: packaging choices ripple across the entire supply chain.

The discussion also revealed a growing urgency to involve packaging experts earlier in vehicle design and model launches. Complex parts like headlamps may delight designers and customers, but they also reshape freight density for years to come. Collaboration across OEMs, suppliers and logistics partners is becoming essential to balance aesthetics, cost and sustainability. As Toyota and Wellplast stressed, packaging must now be treated as a lever for resilience and environmental progress, not just protection for parts.

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24 September

Navigating tariffs, disruption and supply chain transformation

The conference theme this year is "Preparing for a paradigm shift, increasing logistics and supply chain influence", and a key objective is to integrate the voice of supply chain and logistics earlier into decision-making processes, product planning, and design phases, Christopher Ludwig, chief content officer of Automotive Logistics explains. This integration aims to build systems with better flexibility, agility, and resiliency, and to maintain competitiveness. 

Key takeaways: 

Geographical shifts in North American production: US production levels have changed, with a different value composition. Mexico has seen the biggest jump in production. Canada has experienced the biggest decline in production.US market changes: The US market volume has not grown in 25 years, remaining around 16m units annually. The composition has shifted dramatically from sedans and passenger cars to light trucks and SUVs.Market share has become more diverse and fragmented: The "Big Three" (GM, Ford, Chrysler/Stellantis) represented 65-70% in 2000, now around 38%. The top three today (GM, Toyota, Ford) account for 40-45%. New brands like Tesla, Lucid, and Rivian have emerged, while others have discontinued.Supply chain integration and globalisation: Significant shift towards supply chain integration within North America, with products and vehicles moving multiple times across borders. Similar integration trends are observed in Europe and other regions. Global links have grown due to the rise of Asian and South Korean brands. Technology changes in vehicles (software-defined, electronics, chips, EVs) further globalise the supply chain.Increased volatility and disruption: Reliance on frozen production forecasts for long periods is no longer feasible. The industry manages between different powertrains, trim levels, and options, with greater lead times.

Discussion points: 

Industry transformation and complexity: For those new to the industry, the supply chain is characterised by continuous transformation and uncertainty, with no return to a previous "stable" state.Supply chain challenges: Key challenges include customers expecting fast service at a click of a button, demand for visibility and transparency, changing tools and technologies, shifts in geographical supply chain footprint, and ongoing disruptions, including tariffs.

Quotes of the session: 

"There is no going back to whatever that halcyon time might have looked like before," - Christopher Ludwig, chief content officer, Automotive Logistics

"For those who have only recently entered the industry, they only really know a supply chain that is undergoing transformation, and only really know a situation of uncertainty, of the need for sort of continuous change," - Christopher Ludwig, chief content officer, Automotive Logistics

Editor's takeaway: 

Christopher Ludwig's keynote was a masterful diagnosis of an industry at a critical inflection point. The core message is clear: automotive logistics is no longer a back-office function, but a strategic imperative for survival and growth.

The era of predictable supply chains is over. Those new to the industry only know a landscape of continuous transformation and uncertainty, with no possibility of returning to a previous "stable" state. The critical goal is to move logistics and supply chain voices upstream in decision-making, specifically into product planning and design phases. This approach enables building more flexible, agile systems that can enhance resiliency and maintain competitiveness. The industry has weathered multiple disruptions, from pandemic to chip shortages to geopolitical tensions. The key is developing supply chain redundancy that allows operations to continue despite inevitable lead time disruptions.

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23 September

What to expect over the coming days

We're in Saint John's Resort in Michigan and we're gearing up for the 25th edition of ALSC Global, where supply chain and logistics leaders from OEMs, suppliers and tech partners will explore how resilience, digitalisation, packaging strategy, trade policy and innovation are shaping the future of automotive logistics.

One of the central threads running through ALSC Global this year is resilience in the face of volatility, as highlighted in the theme of this year's event: “The new supply chain paradigm: Creating stability in an era of uncertainty”. Marcio Lucon, executive director of global logistics and containers at GM, will set the tone with insights on the role that logistics is playing in the carmaker's strategic decision making and investments, including upstream logistics and packaging design, dynamic network engineering, vehicle logistics and service parts logistics requirements.

Packaging and design integration will also take centre stage, particularly in sessions focused on lean logistics, efficiency and sustainability. A keynote from Iván Dávila, director of inbound logistics, Supply Chain Management at Nissan will outline how packaging choices made early in product development can ripple downstream to affect cost, transport efficiency, and emissions. With further contributions from Brad Jorgenson, general manager of advanced planning for parts and packaging at Toyota, Alexander Burnett, director of inbound logistics and containers at GM, and Dr Ulrich Wieland, BMW’s vice-president of production control, logistics and material control, these sessions will show how packaging is becoming a lever for supply chain optimisation rather than an afterthought.

Another big area of focus is digital strategies and visibility — the push to move from reactive logistics to predictive, data-driven operations. The session “Cars by number: Vehicle visibility from order to delivery” will examine how OEMs are pulling together transport, customs, and yard data to improve lead times and flexibility. Expect strong contributions from leaders like Amy Paulsen, GM’s director of finished vehicle logistics, and John Rich, manager of data analytics and AI programmes at Mazda, on how visibility tools can improve outbound performance. In parallel, sessions on scenario planning such as “Simulating supply chains: Combating unpredictability with collaboration and digital twins” will highlight how modelling and data can help anticipate disruptions and guide resilient planning.

And of course, trade, cross-border policy, tariffs and customs are also high on the agenda. As North America navigates changing agreements, regulatory shifts and localisation pressures, OEMs and logistics providers will discuss how to adapt strategy and compliance in real time. Sessions blending trade policy with digitalisation promise to reveal how companies are optimising cross-border flows, leveraging tariff exemptions, and redesigning networks to reduce exposure to fragile supply lines.

Finally, expect a strong emphasis on automation, human talent, and sustainability. Sessions will explore material flow, warehouse robotics, and parts handling alongside workforce development and leadership. Packaging and sustainability features prominently too, from Nissan’s keynote to Magna’s sessions on sustainable packaging. The message is clear: green logistics and smart design are being built into every layer of supply chain strategy.

If there is one theme that will emerge across all three days, it is that logistics is no longer a support function. As the likes of GM, Nissan, BMW, Toyota and others take to the stage, the coming days at ALSC Global will demonstrate how logistics is increasingly central to strategy, reshaping networks, tools and partnerships to meet a new era of challenges.

There's still time to register to attend ALSC Global, running from 23-25 September in Saint John's Resort, Michigan. View the agenda here, and register now here.