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China, the world’s largest car market.", "image": "https://www.logisticstechoutlook.com/newstransfer/upload/450x308_O8rs.jpg", "author": { "@type": "Organization", "name": "Logistics Tech", "url": "https://www.logisticstechoutlook.com/" }, "publisher": { "@type": "Organization", "name": "Logistics Tech", "logo": { "@type": "ImageObject", "url": "https://www.logisticstechoutlook.com/newstransfer/upload/450x308_O8rs.jpg" } }, "datePublished": "2024-04-15", "dateModified": "2024-07-01"}</script><title>Electrification of the Manufacturing Supply Chain Is Here - Get on...</title><meta name="description" content="For the past few years, electric passenger cars have been making headlines consistently. China, the world’s largest car market."><meta name="description" content="For the past few years, electric passenger cars have been making headlines consistently. 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}}@media screen and (max-width: 630px){ h2{ margin-left: 0px !important; }}</style> <section> <div class="full-width sec5-border" id="news_desc_p"> <h1 class="blue-h2 slider-h2">Electrification of the Manufacturing Supply Chain Is Here - Get on Board or Get Left Behind</h1> <h2 class="dsnw"> <em>Pranav Padgaonkar, vice president, GEP, a leading provider of procurement and supply chain solutions to Fortune 500 companies.</em></font><em></em></h2> <div id="innovation"><table width="592" border="0" style="border-bottom:0px; border-left:0px; border-right:0px; border-top:0px;"><tbody><tr><td valign="top" align="left" style="border-bottom:0px; border-left:0px; border-right:0px; border-top:0px;display: inline-flex;"> <div id="conference" style="width: 67px;"> <a href="https://twitter.com/share?text=Electrification of the Manufacturing...#logisticstechoutlook via @LogisticsTO&url=https://supply-chain-solutions-canada.logisticstechoutlook.com/cxoinsights/electrification-of-the-manufacturing-supply-chain-is-here-get-on-board-or-get-left-behind-nid-1954.html" class="twitter-share-button">Tweet</a> <script>!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+'://platform.twitter.com/widgets.js';fjs.parentNode.insertBefore(js,fjs);}}(document, 'script', 'twitter-wjs');</script> </div> <div id="conference"> <div id="attend"> <script src="//platform.linkedin.com/in.js" type="text/javascript"> lang: en_US </script> <script type="IN/Share"></script> </div> </div> <div id="conference" style="line-height: 0px;"> <div id="fb-root"></div> <script>(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.async=true; js.src = "//connect.facebook.net/en_US/sdk.js#xfbml=1&appId=488639531237057&version=v2.0"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk')); </script> <div id="conference"> <div id="attend"> <div class="fb-share-button" data-href="https://supply-chain-solutions-canada.logisticstechoutlook.com/cxoinsights/electrification-of-the-manufacturing-supply-chain-is-here-get-on-board-or-get-left-behind-nid-1954.html" data-type="button"></div> </div> </div> </div> <div id="conference" style="width: 100px;"> <div id="conference"> <div id="attend"> <div class="g-plusone" data-annotation="none"></div> </div> </div> <script type="text/javascript"> (function() { var po = document.createElement('script'); po.type = 'text/javascript'; po.async = true; po.src = 'https://apis.google.com/js/platform.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(po, s); })(); </script> </div> </td> </tr></tbody></table> </div> <p> <p><div style="width:300px;" id="desc_img"><img alt="" src="https://www.logisticstechoutlook.com/newstransfer/upload/iqhxUntitled-4.jpg" style="float:left; height:300px; margin-right:10px; width:300px" /><span style='font-weight: 800; font-size: 15px; width: 300px; text-align:left;color: rgb(0, 102, 153); border-top: 1px dotted rgb(221, 221, 221); border-bottom: 1px dotted rgb(221, 221, 221); float:left; padding:0px 15px 0px 0px;'>Pranav Padgaonkar, vice president, GEP, a leading provider of procurement and supply chain solutions to Fortune 500 companies.</span></div><p>For the past few years, electric passenger cars have been making headlines consistently. China, the world’s largest car market, just set records with sales of 5.67 million new energy vehicles (NEVs) in 2022. This means more than one in every four cars sold in China is electrified! The transition to EVs is truly underway globally.</p> <p>So, the question is, can industrial vehicles be far behind? Do manufacturing industry practitioners start evaluating a transition as well?</p> <p>The answer is a resounding yes. At least in three key vehicle applications — material handling, short haul, and last-mile delivery — the economics of logistics fleets have flipped to favor electric vehicles. That said, there are still constraints, and differences, in the way EV fleets operate. Manufacturing needs to understand and account for these to set up EV fleets for success. But if you proactively think through these constraints, you will realize substantially lower total cost of ownership (TCO,) happier drivers/operators, cleaner facilities, and long-life vehicles with minimal maintenance needs.</p> <p><strong>Short Haul Semis: ‘A typical electric semi will have a lower fuel cost than many pickup trucks’</strong></p> <p><img alt="" src="https://www.themanufacturingoutlook.com/graph_image/ke2f2Untitled-52.jpg" style="float:left; height:113px; margin-right:10px; width:300px" />Electric semis just went mainstream with the Tesla Semi making headlines for covering 500 miles on a single charge. However, most people don’t realize that there are already many electric semis in the market, albeit with shorter ranges.</p> <p>Semis cover several times more miles than do passenger cars. So, running cost is far more crucial for them. And current-generation electric semis have a running cost so low that every fleet owner must take notice. The constraints are more around the range, and highway charging infrastructure. These are not huge barriers to overcome on short-haul routes.</p> <p><strong><img alt="" src="https://www.themanufacturingoutlook.com/graph_image/j6cmUntitled-56.jpg" style="float:left; height:198px; margin-right:10px; width:504px" />Using Cargo Vans for LastMile Delivery Plays to All the Strengths of Electric Powertrains Over IC Engines.</strong></p> <p>Electric drivetrains outperform IC engines by the biggest margin in stop-go, low-speed applications, with limited HVAC use, and short total distances. Last mile delivery is exactly that! With energy wastage in idling and braking drastically reduced, Amazon is waiting for its Rivian EDVs, Walmart is already using Ford e-Transits and waiting for Canoo Vans, and so on. GM’s BrightDrop is meanwhile creating a very compelling ecosystem and solution around its vans. In fact, the only shocking part was when USPS chose a largely non-electric solution last year.</p> <p><img alt="" src="https://www.themanufacturingoutlook.com/graph_image/czlpjUntitled-58.jpg" style="float:left; height:118px; margin-right:10px; width:542px" />In last-mile delivery, all the advantages above apply, but there is not much to watch out for — EVs are simply better at it!</p> <p><img alt="" src="https://www.themanufacturingoutlook.com/graph_image/dphp4Untitled-59.jpg" style="float:right; height:117px; margin-left:10px; width:379px" /></p> <p><strong>EV Trucks Provide a Clear Advantage for Material Handling</strong></p> <p>Electric lift trucks are competitive up to 40,000 lb. capacity and are armed with ~75% lower fuel costs/~40% lower maintenance costs — a clear TCO advantage over propane and other lift trucks. This area is most obvious of the three because electric vehicles have been prevalent here for decades. Electric forklifts with lead-acid batteries predate Lithium-ion batteries, although they were used in niche applications. Today, electric lift trucks cover the broad market, with only the niche area of >40,000 lb. capacity left untouched.</p> <p>Issues in electric lift truck recharging times, longevity, fire safety, and load-bearing capacity have been largely resolved, especially with the advent of LFP batteries. So much so that newer vehicle forms such as automatic guided vehicles are exclusively manufactured as electric-only.</p> <p><img alt="" src="https://www.themanufacturingoutlook.com/graph_image/avd7sUntitled-60.jpg" style="float:left; height:142px; margin-right:10px; width:512px" />For commercial vehicles used in manufacturing supply chains, multiple factors together create a strong business case:</p> <p>• Running costs are paramount for commercial vehicles, which undergo heavy use</p> <p>• Maintenance costs and time matter way more than they do for passenger cars — EVs require fewer maintenance schedules, saving both cost and time</p> <p>• Rider comfort and low noise levels are distinct advantages for operators who work with the vehicle all day</p> <p>• Emissions reporting is becoming a necessary part of business. EVs offer an effective way to show emissions reduction while also saving on TCO</p> <p>• Eco-friendliness is becoming a crucial part of consumers’ purchasing decisions. 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