Logistics is a strategic tool to stay competitive

Juan Manuel Santiago

Juan Manuel Santiago is vertical lead for automotive logistics at DP World, where he drives the development of integrated, end-to-end supply chain solutions for automotive customers across Europe. With 25 years of global experience in automotive supply chains, including two decades in senior leadership roles within leading OEM environments, he brings deep expertise in supplier management, aftersales optimisation, risk mitigation and digital transformation. At DP World, he focuses on building resilient, technology-enabled logistics solutions that enhance efficiency, visibility and performance across complex international networks. 

What’s the big picture for carmakers in Europe right now?

It’s clear that we’re entering a new era in the European automotive history. The stability enjoyed by the continent’s manufacturers over the last few decades has been ruptured by a much more complex reality. Supply chains have been uprooted and forced to evolve as macro pressures, including geopolitics, tariffs, labour shortages and cost inflation, collide with the imperatives of electrification (new parts, materials, technologies). New players are entering the European market, with the centre of gravity shifting towards Asia, where the majority of EVs are made. 

I believe Europe can remain a carmaking powerhouse if it can get this next phase right. Whenever OEM leaders ask me what this takes, I say the same thing: use logistics as a strategic tool to stay competitive. It needs to flow and flex in the face of disruption. The good news is that we have more tools than ever to ensure it does. 

Electric vehicles are the future, but why are they such a challenge for logistics? 

Electrification changes everything. We aren’t just moving metal and plastic anymore; we’re handling high-value, high-risk components. Lithium-ion batteries require a completely different approach to safety, temperature control and regulation. You can’t just ‘plug and play’ an old warehouse for an EV supply chain.

That’s why we are investing in specialised, ADR-compliant sites like Wolfenbüttel and Rieste in Germany. These are high-tech environments designed to handle hazardous materials safely. We are also looking ahead to the circular economy, helping OEMs manage the reverse logistics of end-of-life batteries. If we want electrification to work, the logistics behind it must be as innovative as the cars themselves.

How do you keep car production running smoothly when the world is so unpredictable? 

Today, resilience is about shortening the distance between the parts and the plant. That’s why we are focusing on what we call inventory pooling – using our expanded network of inland terminals in places such as Leipzig (Germany), Debrecen (Hungary) and Nitra (Slovakia) to keep critical components closer to the factory floor. 

By connecting these hubs via rail and barge to major ports such as Rotterdam or Constanța, we create a safety net. If one route is blocked or a port is congested, we have the flexibility to reroute. It’s about moving from a rigid chain to a flexible web, ensuring that even if there’s a surge in demand or a delay at sea, the assembly line in Central Europe keeps moving. 

Everyone talks about AI – how is it making a difference for carmakers on the ground? 

In an industry where margins are thin and parts are expensive, knowing is better than guessing. With AI, the industry can take what it reliably knows to the next level. Visibility platforms like Cargoes Flow enable OEMs to see around corners, not just down the road. This was the stuff of dreams a decade ago. 

Predictive resilience is the industry’s secret weapon. If we can use data to simulate a disruption or predict an inventory shortfall before it happens, we can fix the problem while it’s still small. Digitalisation can turn the supply chain into far more transparent and manageable asset, allowing for smarter, faster decisions every step of the way. 

Car companies are under pressure to be greener – how can logistics help them?

The European Union’s ‘Fit for 55’ legislation, combined with rising carbon costs, has made the decarbonisation of Scope 3 emissions a financial imperative for OEMs. With the majority of emissions embedded in the supply chain, shifting freight from road to lower-emission modes such as rail and inland waterways is one of the most effective levers for reducing CO₂.

Our intermodal network across Europe is designed to support that shift. In its first year, our modal shift pilot at Southampton removed an estimated 30,000 metric tonnes of CO₂ and 8 million truck miles from the road. With well-developed but often underused rail and water networks across Europe, there is clear scope to scale these lower-carbon approaches further.

How is the map of automotive trade changing and how are you preparing for it?

The map is definitely being redrawn. We’re seeing a significant trend toward nearshoring and friendshoring, with more production moving closer to European consumers to de-risk against geopolitical shocks like we’ve seen in the Red Sea.

In response, we’re expanding our presence in Eastern Europe, with investments at Constanța to support trade between Turkey and the EU, and at our inland terminal in Aiud, Romania. At both sites, the focus is on creating state-of-the-art entry points. At Constanța, this includes the recent introduction of a drive-through scanner at the ro-ro terminal, the first of its kind in central and eastern Europe, reducing processing times from five to seven hours to just two to three minutes.

We are also investing in the people behind the technology. As we bring in more automation and robots, we are upskilling our workforce to ensure they can manage these digital-first environments. Ultimately, across people, infrastructure and technology, our focus is on building supply chains that can keep pace as the map of automotive trade is redrawn.

For more on DP World, visit their website here.