Analysis and improvement of the outbound transportation process in the automotive sector: The case of IVECO Group

We find ourselves in a moment in history marked by significant events, challenges and transformations, such as a global pandemic, political dilemmas, a surge in technological innovation and, moreover, the relentless march of globalization. This rapid confluence of events, unfolding in the span of less than a decade, has irrevocably altered the collective human perspective, making it more eager for immediate results and less willing to wait. For this reason, companies have increasingly prioritized improving consumer experiences as a strategic imperative to secure a competition in market, the automotive industry being a primary example of this trend. This industry is distinguished by high complexity, attributable to the multiple industries involved in the manufacturing of vehicles, which collectively contribute to an elaborate supply chain network. To handle this complexity in the supply chain, robust logistics systems are essential for them to focus on efficiency, time optimization, customer, and continuous improvement through targeted strategies and actions to ensure efficient product movement, process optimization, and customer satisfaction. The objective of this Master Thesis is to study and improve the outbound transport process in the automotive field, focusing on that of IVECO group, with the goal of meeting customer expectations and increasing efficiency, and cost savings. Better process management and visibility can result in a greater competitive advantage for the company and, at the same time, an opportunity for innovation. The Thesis is structured as follows: Chapter 1 introduces basic concepts related to logistics and external transportation sector, with special reference to the automotive industry, including the players involved and a focus on heavy and light vehicles. Current market scenarios and their evolution in the past, supply chain and logistics issues are presented. Chapter 2 presents a comprehensive review of the processes, challenges and opportunities for outbound transportation logistics in relation to the IVECO Group, where the completed an internship experience. The AS-IS Outbound process of IVECO company was mapped, highlighting its main critical issues, especially in terms of time. Chapter 3 investigates the causes of delivery delays, both endogenous and exogenous. This chapter delves into internal inefficiencies within the company as well as external factors such as supplier delays and transportation disruptions. Chapter 4 identifies possible solutions and their implementation within the company with the support of different business teams, to achieve a flexible, fast and adaptable logistics process. The first activity was the in-depth analysis of the outbound activities performed by the different business teams in the outbound process, to have a better communication within the company and reduce of lead time from the moment the customer order is received, to the moment the vehicle is delivered. The second activity relates to creating more effective communication with IVECO transporter providers. A survey was sent to transport providers to understand their views on the process and identify solutions that would benefit transportation providers and IVECO. Finally, Chapter 5 presents the conclusions of the activities that were the beginning of a formal analysis of the AS-IS outbound process of the IVECO Group and points out future possible actions to be taken to further improve of the outbound process.