As an OEM, picking a vehicle transporter for your new cars, motorcycles, RVs, or sedans is not as easy a task as you’d like. There are many national and international vehicle shipping services that all have different ways of providing quotes and managing transit time.
This article will help you determine which vehicle transport company is right for your finished vehicles. In addition, we’ll touch on the current supply chain issues amidst the global semiconductor chip shortage and discuss how best to approach finding suitable vehicle transportation services.
How to Find the Right Vehicle Transportation Service for your Finished Vehicles
Experience is crucial when it comes to finding the right auto transporter. The varying sizes of vehicles, necessary safety measures, and speed of transport is key to alleviating your supply chain worries. The semiconductor chip shortage has created increasing volatility in production and shipping patterns for automotive OEMs. The chip shortage forced many automakers to stop production of not only specific models but also entire lines of vehicles, leaving factories and their workforce vulnerable.
In addition, the shortage of inventory has affected the carrier network, causing many carrier companies to readjust and reprioritize their businesses. This disruption will inevitably lead to a lack of capacity when the shortage of chips slowly subsides and when the production lines are ready to be revamped. So, for these vehicle shippers who will need to ramp up production quickly, if they have not done so already, speed and flexibility will be paramount.
Working with experienced carriers or with a transportation provider who has an experienced carrier network will give you comfort in knowing that your inventory is moving quickly and efficiently.
Following AIAG Standards
The Automotive Industry Action Group (AIAG) is a not-for-profit organization that works to develop standards and issue certifications along the automotive supply chain. This includes working with OEMs, suppliers, service providers, government entities, and others to ensure that industry practices are current and upheld.
The best vehicle transporters will advertise that they are AIAG compliant as well as provide cargo insurance. It’s important to check their website whether they do or not. However, the AIAG has many different sets of guidelines, so you should cross-check the AIAG standards with the auto shipping companies you’re reviewing.
For an OEM seeking vehicle transport, you should be checking in the Finished Vehicle Logistics (FVL), which concerns the finished vehicle supply chain for both OEMs and service providers. The AIAG has both paid and free resources available through its website, and they break down three primary standards for FVL: Damage Claims Reporting, Connected Vehicle, and Rail & Haul Visibility.
What are AIAG Standards and why do I want them?
AIAG Standards are the backbone of safe vehicle transportation, and the FLV standards are essential if you’re wanting productive transport of your parts. While they seem somewhat rigorous at times, it is important to understand that the processes and practices here are developed with everyone’s best interests in mind. So, when selecting a Vehicle Transportation Solution as an OEM, you should be reviewing the AIAG standards and cross-referencing them with your potential carrier’s offerings to ensure they match.
Which Delivery Network Has the Best Carriers?
While you’ll be able to freely research online for the best car shipping companies, investigating their actual movers is a wholly different affair. Vehicle transportation companies can work with tens of thousands of individual carriers, so instead of researching every last one of them, you should instead understand the way the company treats these employees.
Vehicle transportation service companies who provide carriers they work with one-to-one and 24/7 support will typically see better results with On-time delivery and pick up. Communication between a carrier representative and a carrier is key to ensuring better success.
Additionally, providing the carrier with a convenient digital solution such as an app will help streamline processes—reducing confusion and time. A simple smartphone app has the potential to enable the carrier to get the one-to-one support from the company, receive their payments quickly, capture photos for damage claims, and provide you with up-to-date information about their location and the status of your shipment. All this enables the carrier to focus on their work and move on to the next load.
Ideally, you should pursue a vehicle carrier who goes above and beyond what’s required of them and works to engage their carriers in the workplace through group meetups, activities, charitable contributions, or other. This helps them to be invested not just in what they do, but who they work with and the quality of that work, as they have personal stake in the company and its success.
When Will the Supply Chain Recover from this Global Chip Shortage?
In an interview with NPR, Ann Wilson of the Motor Equipment Manufacturer’s Association said that “We are seeing the greatest challenges to our supply chain that we have seen in decades, probably 20 or 30 years.”
This is the result of a shortage of semiconductors, or silicone, a material used in computer chips and other devices to help carry data and electricity. The semiconductor chip shortage has upended the auto industry. The sky-high demand for new and used cars are forcing OEMs, dealerships, fleets, rental companies, and remarketing companies to rethink their supply chain strategies. Automakers like Ford have had to halt production on new vehicles as they lack the materials to complete them. This has caused a large buildup of near-complete vehicles and led to some factories becoming ‘moth-balled’ as they build an inventory of incomplete cars.
Unfortunately, the end is not near, and disruptions will inevitably continue into 2022. However, RPM understands the gaps and pain points affecting all sectors within the vehicle space. RPM provides capacity for our customers’ transportation needs, regardless of mode, and alleviates supply chain pressures for suppliers, OEMs, dealers, retailers, and auctions. The end-to-end experience in the automotive space gives RPM a unique understanding of industry needs and consumer behavior.
Conclusion
Picking the right auto transport services for your finished vehicles is an essential decision in your supply chain, as failing to secure safe, reliable, and dependable transport for your cargo can result in unnecessary damages, delays, and expenses.
As outlined above, there are several critical factors that can help you determine if certain vehicle transportation companies are right for you. Ideally, you should be searching for a robust, flexible, and reliable partner that has the experience and know-how to move your vehicles.
Sources:
AIAG - Finished Vehicle Logistics | AIAG.org
NPR - Auto Industry Continues To Struggle With Supply Chain Issues | NPR.org
