Inbound Logistics | January 2026

AUTO LOGISTICS

CASE STUDY: STEERING FREIGHT TOWARD PROFIT

says Fathi Tlatli, president for global automobility at DHL’s Customer Solutions & Innovation (CSI) team in the Americas. Different engine types— EV, hybrid, internal combustion engine—have different supply chains, and CSI has established 20 EV Centers of Excellence around the world. “In terms of logistics, we have important requirements for batteries and other parts that are specic to EVs,” Tlatli explains. “The rise of factories producing these batteries adds to the complexity of EV supply chains.” Given this consumer dynamic, “I don’t envy OEMs having to decide what to build and not build, or where to build,” Urbanski adds. 4. COST PRESSURES Cost pressures are a constant in the automotive industry. Because every vehicle represents a major investment, managing supply chain expenses is essential for all manufacturers. Technology—including articial intelligence (AI)—plays a growing role in achieving that goal. “You can’t go through a conversation without mentioning AI,” Eigege says. Specically, automotive shippers are interested in using AI to “take away some repetitive tasks in the supply chain and to predict, observe, and drive efciency,” he notes, which ultimately combine to address cost concerns. “An important role we play is understanding our customers and utilizing technology to develop and implement focused, continuous improvement plans,” Knight says. This helps shippers better respond to supply chain disruptions and unexpected changes with speed and cost in mind. “In some cases, that might mean changing routing by using technology for more accurate proling of a particular shipment,” he says. “Or it could be converting expensive air freight into a more cost-effective solution.” For example, Ascent’s Fast Boat service—a time-critical ocean solution with 8-17 day port-to-port transit—helped an automotive customer move freight

Ryder and other logistics providers are making similar investments. “We have an extensive network across North America, and will be able to help our customers depending on how things shake out,” Eigege says. “If our customers are building vehicles in Mexico for the Mexican market, they will need a supply chain there.” Ryder already handles about 320,000 cross-border transactions annually. 3. CHANGING CONSUMER DEMANDS The U.S. electric vehicle (EV) market is feeling the effects of shifting consumer sentiment as well as changing incentives. With some federal and state tax credits being scaled back or eliminated, many buyers are rethinking EV purchases, and as a result, automakers are adjusting their offerings, and subsequently, their supply chains. For example, General Motors recently cancelled its BrightDrop electric delivery van program and ended production at its plant in Ontario, Canada. GM blamed a “slower than expected” commercial EV market, a “changing regulatory environment,” and the elimination of U.S. tax credits. The situation is different in other parts of the world, however. “EVs will be about 25% of auto sales by 2030, with about 39 million EVs globally,”

For Automotive Global Solutions (AGS), a mid-market manufacturer of specialty automotive parts, outdated logistics processes were quietly eroding prots. Manual routing guides and legacy systems made it difcult to track costs or performance, leaving teams reactive and overspending. After a referral from its private equity rm, AGS reevaluated its freight vendors and implemented a more strategic approach to logistics by partnering with KDL Logistics. By implementing KDL’s automation and visibility tools in phases, the company shifted from manual processes to data-driven decision- making. The new platform provides AGS with real-time shipment insight, transparent cost tracking, and greater operational accountability—helping turn freight from a cost center into a more manageable and strategic part of the business. “KDL actively engaged in ways to give us a competitive advantage, focused not only on cost, but also on how to make logistics a benet to the company,” notes Chris Dewey, director of supply chain operations for AGS. “I am accountable for freight spend and on-time shipment, and this technology helps my team perform more effectively.” Collaboration and clear communication remain central to the approach, he adds. With these changes, AGS has built a logistics model that reduces costs and supports the company’s competitiveness in an unpredictable automotive market.

DHL’s high-tech inventory and barcode system o ers near real-time tracking and data insights for automotive suppliers including leading tire maker Continental.

124 Inbound Logistics • January 2026