"To optimise automotive supply chains in Southeast Asia, we have integrated what used to be independently contracted and managed [networks] by facilitating standardisation of KPIs and service levels" - Robert Strain
, Ceva Logistics
At Ceva Logistics, Robert Strain
, vice-president automotive for Asia Pacific, says approximately 75% of its automotive business in Southeast Asia is managing contract logistics, including warehousing and distribution services.
adds that Ceva's automotive network is the most developed in Thailand and is growing rapidly in Malaysia and Indonesia.
Ceva's Robert Strain says there is a trend to integrate supply networks more in Southeast Asia.
Thailand has the most complex and developed supplier footprint, he
Indonesia and Malaysia, although highly regulated on local content, depend on imported content, and are expected to use more material from other ASEAN countries following further free trade agreements.
Aftersales logistics in Southeast Asia is also quickly moving toward an integrated model, with few or no single country models.
says that finished vehicle logistics networks are the last bastion to integrate, thanks largely to their dependency on government oversight.
For example, the use of haulaway equipment varies from country to country and may be affected by governmental regulations.
"In order to optimise automotive supply chains in Southeast Asia, we have integrated what used to be independently contracted and managed [networks] by facilitating standardisation of KPIs and service levels," says Strain
says this is a positive development for the logistics sector and provides opportunities for Ceva
to develop cross-border services.