When the best-laid schemes of supply chain management go askew, premium freight is the last and best resort to avoid the worst. Marcia MacLeod looks at the contingency thinking and critical strategies that save the day.
In an ideal world the automotive supply chain would run smoothly. Parts would have plenty of time to be shipped by sea freight or road haulage and no one would ever worry about production line stoppages.
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But of course, reality presents a very different picture. Production can be delayed for a number of reasons, from staff illness and equipment failure to the inability to obtain raw materials or even factory fire. Transport disruptions can cause problems, too, from bad weather, port and road congestion, or a surfeit of cargo, which means something has to be left on the quay or in the yard.
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Unexpected difficulties such as these can lead to huge financial penalties for late delivery, line stoppages and ultimately the delay in producing and delivering the finished vehicle. And, since no vehicle means no income, everyone in the supply chain, from the OEM downward, suffers. To avoid losing out, OEMs and suppliers are increasingly turning to premium freight airfreight instead of sea freight, air charter instead of scheduled airline, road express instead of groupage, or even ordinary full load–to, literally, deliver the goods.