Technology in all the fields has shown magnificent advancement. In order to solve various problems, a new technology is created now on a daily basis. Electric cars or EVs are also a great invention in the automotive industry. It was introduced to the world to take care of the numerous problems associated with the tradition cars running on the combustion engines. From better efficiencies to a controlled depletion of fossil fuels and alleviation of the global warming, EVs have a lot to offer. As the technology has taken the locomotive industry by the storm, the supply chain management must keep up with the changing needs.
Implications of EVs in Logistics
The manufacturing sector of the automotive industry have to make a few decisions to keep up with the growing demands of EVs in the market. Since there is no more need of creating and supplying engines but they must acquire batteries and transport them. As such, there is a question of make or buy decision. That will determine whether it is going to be a case of inbound manufacturing or outbound manufacturing. The logistics sector will have to respond correspondingly.
Acquisition of a reliable battery producer, introduction of a battery producer in the process of car manufacturing, and cooperation between car manufacturers and battery suppliers are a few important concerns to take care of. The logistics’ costs for supplying the heavy car batteries will have to be considered and adjusted likewise.
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