Three learnings for long-term resiliency the automotive industry can take from other sectors in 2026
The automotive sector has long been considered a leader in supply chain innovation, but with global disruption shifting the focus from lean logistics to resilience, sectors like healthcare and e-commerce have adapted in ways the auto sector is yet to take advantage of. Drawing from its experience across several industries, GXO shares three key learnings automotive can apply from other sectors when it comes to innovating for long-term resiliency.
Automotive LogisticsAutomotiveLogistics
Published
3 min
GXO is the world’s largest pure-play contract logistics providerGXO
PARTNER CONTENT
This article was produced by Automotive Logistics in partnership with GXO
Martin Cooper, managing director for technology and consumer goods at GXO, is a seasoned supply chain and logistics leader with over 20 years’ experience across the retail, e-commerce, grocery, consumer goods, automotive and data centre sectorsGXO
The automotive sector has historically prioritised LEAN and Just-in-Time (JIT) principles in the supply chain to minimise
inventory, reduce waste and drive efficiency in competitive, high-volume
manufacturing environments. While such a model has proven effective in more predictable
environments, it is increasingly being tested by today’s logistics landscape,
where black swan events are no longer viewed as rare exceptions but as risks
that supply chain strategies must account for.
While industries ranging from e-commerce to data centres
have rapidly adapted to market volatility, regulatory pressure and changing
customer expectations, automotive has generally remained more closely tied to
its traditional efficiency-first model. As a result, some of the most
significant advances in supply chain innovation are now emerging elsewhere. Rather than abandoning LEAN principles, the challenge for
automotive is to complement efficiency with greater resilience, visibility and
flexibility.
With this in mind, GXO, the world’s largest pure-play
contract logistics provider, has shared learnings the automotive sector can take
from other industries in three key areas, to help build more resilient
operations and regain a leading position in supply chain innovation.
Taking advantage of technology in the aftermarket
Although automotive led the adoption of automation in
production, the aftermarket has lagged behind despite being one of the most
complex and variable parts of the supply chain.
Automation and robotics open up new opportunities for efficiency and accuract within automotive warehousesGXO
As Martin Cooper, managing director
for technology and consumer goods at GXO, identified, today’s aftermarket
networks operate with large SKU ranges, unpredictable demand patterns and
increasing pressure for speed, creating a strong case for automation.
"The opportunity lies in selectively deploying robotics
where it delivers the most value: goods‑to‑person systems to handle high‑volume
picking, automation to improve inventory accuracy in dense storage environments
and digital tools that optimise order prioritisation in real time," he
said. "This isn’t about fully automating the warehouse but about
stabilising operations, reducing dependency on scarce labour and improving
consistency at scale."
"We’re now seeing aftermarket operations evolve from
labour‑intensive
environments into more structured, technology‑enabled networks," continued
Cooper. "For automotive companies, this represents a significant
opportunity to improve service levels, manage complexity more effectively and
build operations that can adapt to ongoing demand volatility.
Addressing demand volatility and availability issues with a more structured approach
Through three key actions, GXO has been able to anticipate and prepare for change rather than relying on reactive labour scaling:
Real‑time data and predictive analytics translate multiple demand signals into actionable insights
Technology and automation, from robotics and wearables to advanced warehouse systems, reduce reliance on manual processes
Shared warehousing fulfilment models flex capacity to allow operations to be scaled up or down quickly and easily
"The result is a more resilient operating model," noted Cooper. "One that absorbs demand variability through smarter design and data‑driven execution, rather than simply adding labour at peak."
Data-driven visibility and predictive decision-making
As supply chains become more complex, visibility is evolving
from a reporting function into a decision-making tool. While automotive
forecasting has traditionally been long-cycle and production-driven, built
around stable demand assumptions and fixed production plans, today's
increasingly volatile operating environment demands a more dynamic approach.
According to Cooper, sectors such as e-commerce and data
centres are setting the benchmark. While e-commerce has redefined expectations
around real-time visibility, speed and customer transparency, data centre
operators are taking things a step further by building supply chains around
predictive, integrated data environments.
"At hyperscale, data operators are managing
simultaneous global deployments where logistics has become part of the critical
infrastructure itself, requiring precise coordination across manufacturing,
transit, compliance and site readiness," he said. "To support this,
supply chains are built around real-time, API-driven data integration, creating
a single source of truth with continuous visibility across inventory, shipments
and demand."
GXO IQ is an intelligent logistics platform built to manage complexity, scale performance and deliver resultsGXO
Crucially, Cooper argued that the value lies not in
visibility itself, but in the ability to act on it. "The intelligence
embedded in these systems is predictive rather than retrospective, enabling
decisions to be made proactively as part of a coordinated plan, not just in
response to disruption," he said.
At GXO, this approach is supported by GXO IQ, the company's
AI-powered logistics execution platform, which enables predictive inventory
management and operational planning through bi-directional data flows. The
result, Cooper said, is a shift from fragmented, reactive logistics towards a
more orchestrated model that aligns planning and execution across regions and
functions.
"Together, these sectors are shifting the benchmark
from visibility as a reporting function to visibility as a decision
system," Cooper added. "For automotive, the opportunity is to adopt
both approaches, combining e-commerce-style responsiveness with the predictive,
coordinated execution seen in more complex, infrastructure-driven
environments."
Future-proofing with long-term partnerships
A final learning the automotive industry can take from outside the sector is the need for long-term partnerships. These create the stability and shared accountability needed to invest in more advanced capabilities, from automation and digital platforms to more flexible, scalable network design.
Cooper noted that in more complex sectors like data centres, this kind
of partnership enables a shift from fragmented, transactional logistics to
fully orchestrated supply chains, where planning, execution and data
integration are closely aligned. That level of coordination – including predictive inventory management, real time data integration and multi-site deployment capability – he said simply isn’t achievable in short-term engagements.
"Ultimately,
longer-term relationships align around a common objective to design a better
operating model together, underpinned by shared ways of working and a joint
commitment to invest in improvements that enhance performance, resilience and
efficiency over time," Cooper commented.
Recently, a long-term partnership between GXO and a global automotive OEM enabled the design and implementation of a high‑density aftermarket facility supported by lean methodologies and continuous improvement. "This delivered faster service levels, ongoing cost savings through kaizen activity, and ultimately led to further network expansion – outcomes that would be difficult to achieve under a short‑term contract," said Cooper.
Cooper argued that logistics partners with experience across multiple sectors can help automotive companies adopt proven approaches from industries further advanced in areas such as visibility, resilience and responsiveness. "The companies that will lead are those willing to embrace new
ideas, accelerate digitalisation and work with partners who bring fresh
perspectives and translate them into practical, measurable performance gains," he concluded.