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Strategic Separation of Logistics Functions Streamlines Shipments in European Automotive Supply Chain

by Ron N.
10/19/2025
in Supply Chain

A recent supply chain innovation in Poland demonstrates how separating logistics operations from manufacturing can significantly improve freight efficiency and delivery performance for global industrial supply chains. The approach—implemented by a major automotive supplier in partnership with a European logistics provider—offers a template for resilience and streamlined shipment flows.

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At the heart of the strategy is a 2,600 m² vendor‑managed inventory hub established in Wrocław, Poland, which now handles just‑in‑time and just‑in‑sequence deliveries to several leading automotive manufacturers, cutting out inefficient back‑and‑forth movements between France and Poland. The location, positioned just off a major trans‑European corridor, has reduced transport distances by about 400 km, contributing to faster turnaround and lower freight costs.

Before the change, parts were dispatched directly from the manufacturer’s facility to customers—a process that increasingly strained production partners and carried the risk of costly line stoppages. By centralising inventory and logistics execution at a dedicated hub, the manufacturer could focus on core production while the logistics partner managed shipment sequencing, quality control, and timely dispatch to assembly lines operating under precise scheduling demands.

The facility operates with an advanced warehouse system that synchronises with the manufacturer’s IT platforms, ensuring alignment between inventory, fulfilment and transport execution. Within this model, deliveries covering complex delivery windows to automotive customers have become more reliable, while shorter routes and consolidated shipments shave considerable time off supply cycles.

Executives involved in the project report that deliveries from the hub are up to 10 hours faster per shipment loop compared with previous flows, and the structure allows future expansion of logistics operations without disrupting core manufacturing activity—strengthening supply chain resilience and service levels across regional markets.

#BreakingNews #SupplyChainNews #LogisticsUpdate #FreightEfficiency #IndustrialSupplyChains

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  • Home
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© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.