Furthermore, outsourcing supply chain functions to a reliable partner is going to be essential as the automotive industry transforms to become electrified and connected.

Vehicle manufacturers faced with inbound parts shortages or outbound delivery delays are looking to those with logistics expertise and network insight to solve problems that occur on a daily basis.

“You want to find a true partner, someone who is going to work with you and use their experience and connections, and leverage that for you to your advantage,” said Eva Ames, director of logistics at Mahindra Automotive North America.

Mahindra is somewhat of a niche player in North America and insources a lot of its business to remain agile in the face of sudden changes in supply and demand. However, Ames recognises the value in giving outsourced logistics providers a greater degree of responsibility because they have a broader perspective of the logistics network and can advise on more efficient strategies.

“There is tremendous value in partnering with a supplier who can offer stability right now, one who is willing to take on some of the burden, and … bring some perspective and a larger spend because they have other customers,” said Ames. “Especially now during the pandemic. This is the best time to be reaching out.”

According to Ames, Mahindra has a good example in the haulier it uses for finished vehicle deliveries in the US.