Nissan stays ahead of the supply chain curve
Car manufacturers in Japan have suffered as much as any industry due to supply chain problems caused by the Japan disaster.
Toyota and Honda were forced to cut back production in India because of supply problems, while Lexus lost its luxury car market share to BMW and Mercedes-Benz earlier this year.
We haven’t seen too much on Nissan, however, and that’s probably a credit to the carmaker’s supply chain flexibility.
“Nissan was one of the companies which has responded the fastest and in the most efficient way to what happened after the earthquake,” Nisan CEO Carlos Ghosn said.
“This is obviously…due to many people inside the company who are engaged in the company and reacted very quickly, and in a way that is very cross-functionaly and cross-regional in order to limit the damage of this natural disaster.”
SEE OTHER TOP STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK
Immediately following the earthquake and tsunami, Nissan’s staff gathered at the company’s global logistics hub in Yokohama to sort out part allocation and manage other supply chain difficulties.
Many in the auto industry view Ghosn’s key ability is maintaining Nissan’s flexible supply chain approach.
“We are the benchmark here,” Ghosn said. “I’ve seen on many key indicators with other companies that we are at the top level in terms of productivity, in terms of cost, (and) in terms of speed.”
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.