Inbound logistics at the crossroad of cost, resilience and digital change

Automotive inbound logistics has always been complex, but in 2025 that complexity was tested on multiple fronts.

Cost pressure has returned sharply to the top of the agenda for inbound teams, driven by volatile trade policies, new tariffs, geopolitical tensions and an uneven, often unpredictable transition from internal combustion engines to electric vehicles.

Those pressures sit at the heart of the Automotive Inbound Logistics Survey 2025, produced by Automotive Logistics in partnership with DP World, and explored further in the accompanying video recorded at the 25th Automotive Logistics & Supply Chain Global conference. In conversation, DP World’s global vice-president and automotive vertical lead David D’Annunzio, and Automotive Logistics analyst Daniel Harrison reflect on how OEMs, suppliers and LSPs are adapting as established sourcing and planning models come under strain. The video expands on the survey’s findings with practical context from the conference floor, linking data with real-world decision-making in inbound logistics.

What emerges is a clearer picture of inbound logistics as a determining factor in wider supply chain performance. Decisions taken upstream – around network design, capacity, data and collaboration – are increasingly shaping production stability and downstream service. Cost remains the dominant constraint, but inbound logistics teams are under growing pressure to plan for disruption and flexibility alongside cost control as part of wider supply chain and production strategy. 

Cost and trade turbulence reshape strategies

Cost considerations are dominating decision-making in inbound logistics. In the survey (a global study of OEMs, tier suppliers and LSPs), 41% of industry respondents flagged rising costs – from inflation to labour and energy – as a primary concern, while 37% pointed to trade wars, tariffs and shifting policy as a source of ongoing uncertainty.

Tariff uncertainty, in particular, is reinforcing a cautious “wait-and-see” stance. Many companies are deferring major investment or localisation decisions, instead relying on short-term measures such as multi-sourcing, rebalancing production between plants and temporary capacity adjustments. As Harrison notes in the video, these responses reflect pragmatism rather than confidence – maintaining continuity while delaying irreversible decisions.

Carmakers are also contending with powertrain transition pains – juggling internal combustion and EV production – which “increas[es] the complexity of assembly,” as D’Annunzio notes – to an already cost-sensitive inbound network.

Resilience becomes an operational requirement

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While cost remains the overriding concern, inbound logistics strategies are increasingly being shaped by the need to absorb disruption, manage risk and maintain flexibility. Survey respondents ranked resilience among their top three priorities, driving investment in buffer stock, alternative routing options and supplier diversification, alongside closer collaboration up and down the supply chain. Indeed, nearly one-third of executives surveyed cited deeper partnerships and data sharing with logistics providers as key to coping with uncertainty.

The consensus at recent Automotive Logistics industry forums too confirmed that the path forward lies not in resisting unpredictability, but in embracing it – replacing rigid plans with flexible frameworks, real-time data visibility and trust-based collaboration.

“We are all grappling with [constant change]... the best you can do today is have flexibility, or ‘optionality’ in your supply chain,” says D’Annunzio, emphasising that having multiple fallback options may sometimes trump choosing the lowest-cost route when disruption hits.

Digitalisation and long-term value

Despite short-term pressure, the medium- to long-term outlook for inbound logistics remains broadly positive. Survey respondents point to accelerating digitalisation as a key enabler, with investment flowing into advanced planning tools, predictive modelling and selective applications of AI to simulate “what-if” scenarios and optimise inbound flows.

Crucially, digitalisation is reinforcing collaboration. Shared data and connected systems are improving end-to-end visibility, enabling OEMs, suppliers and logistics providers to manage disruption more proactively. As DP World’s chief operating officer for logistics Beat Simon notes in the survey foreword: “To succeed, we must accelerate digitalisation, strengthen planning, and build data-sharing partnerships that enhance visibility and resilience across automotive supply chains.”

Taken together, the survey findings, video insight and wider Automotive Logistics coverage point to inbound logistics playing a more direct role in enabling production stability, flexibility and long-term performance. These themes will continue to shape Automotive Logistics’ reporting, analysis and events as inbound logistics remains central to how the industry navigates uncertainty through 2026 and beyond.