Dauch Corporation's Chris Payne on managing risk in the UK market and creating opportunities from crisis
At ALSC UK, Chris Payne from tier 1 supplier Dauch Corporation – formerly GKN Automotive and American Axle & Manufacturing – discussed the task of bringing the logistics activities of these two companies together, as well as the biggest challenges facing the UK automotive logistics industry and how to create opportunities from crisis.
At ALSC United Kingdom, Automotive Logistics welcomed Chris Payne, head of logistics for Europe and Asia at Dauch Corporation to the Red Sofa to discuss risks and opportunities in today's automotive supply chains.
Dauch Corporation is a major automotive tier 1 supplier which – since February 2026 – has combined American Axle & Manufacturing (AAM) with Dowlais Group and its subsidiaries, GKN Automotive and GKN Powder Metallurgy.
Payne noted that by bringing the two companies together, they not only doubled the size of the business, but doubled the business' logistics activity too.
"We're now at a very exciting point where we're trying to find synergies between the two businesses," Payne said.
He added: "We're trying to understand and work together to understand ways of working, processes, the different carrier bases that we had – which were actually very different, which was surprising but also good – and then trying to focus on what is the best-in-class that we can provide as a supply chain team and a support function from the logistics activity."
He also acknowledged that cost reduction is another priority for the business, not only with its carriers but also in how it consolidates the two business' activities together.
"There's lots of opportunities and lots to learn – it's exciting times," Payne said.
Flexibility is a two-way street
When it comes to mitigating risk, Payne said he always advocates for working closely with suppliers. With an extensive background in the world of logistics service providers, he is well aware of the benefits that a close relationship with the right partner can bring.
"You have to have a mutual, respectful relationship, and you have to take a lot of effort and responsibility when you're choosing your partners," he said. "This is key."
He described increased engagement with procurement functions as "a big step forward" for Dauch Corporation and advised that research should be conducted six months in advance of putting out a request for quotation (RFQ) as to which carriers you want to speak with.
By doing this, early conversations can be had with potential logistics partners that allow both parties to develop a shared understanding of each other's needs, capabilities and goals.
"You don't want to start learning about a business once you've made an award," he shared. "It slows down the process, it's going to cost you more money and in times of crisis or disruption, they may not be able to help you or have the impact that you think they're going to have."
Payne also emphasised that if you demand flexibility from your partners, you must also be flexible yourself, whether that be increasing forecasting, booking shipments on time or giving more notice.
What might seem like minor things that one might take for granted can be a big support to a carrier, he explained, reiterating that regular reviews and close connection with carriers provides a strategic advantage.
Capacity a cause for concern
Payne identified one of the biggest challenges in the UK automotive logistics industry currently is the increase in demand for logistics services. This – coupled with a drop in capacity – is "worrying", he said.
"This is when you then need to start looking at your networks and not be scared to change what you do or to ask questions," he commented.
In terms of managing this risk, Payne identified being in control of data and tracking KPIs using that data as critical.
"Once you have that data and you understand it, you then understand where your weak areas or your risk areas are, and then you can start addressing those problems and trying to find solutions," he said.
Making the best of a bad situation
According to Payne, firefighting your way through a crisis just to wait for the next crisis to come along is not a sustainable or productive strategy. Instead, he urged companies to review what happened with the last crisis – what did and didn't work, what could have been improved – in order to turn crisis into opportunities to adopt new best practises or at the very least add new solutions to the toolkit for the next time a disruption occurs.
"Review what you've done and make sure it's thorough," he advised. "Don't just go through the process, make sure you fully understand what happens."
