Assessing batteries supply chain networks for low impact vehicles

Abstract

Purpose This paper aims to evaluate different logistics configuration to deliver batteries from the supplier to the production lines of a European carmaker who is implementing new propulsions for its models. Design/methodology/approach Several scenarios about the supply chain for traction batteries have been identified based on the company’s requirements and constraints. Then, the variables used for the assessment of each scenario have been selected to calculate the unit battery supply chain cost. Findings The results underline that a direct transport without intermediate nodes is the cheapest one. On the contrary, an additional warehouse makes the organization of the network more complex. However, with this configuration, it is possible to cover the risk of supply since that a certain level of inventory is always guaranteed. Research limitations/implications This study is limited to the analysis of only one model car, and just manual operations have been taken into account for computing the human resource time and cost. The present study is one of the first works exploring the organization of the supply chain for the batteries integrated in electric and hybrid vehicles together with the choice of the location of the related warehouses. Originality/value This paper is one of the first work on the assessment of batteries’ supply chain that are going to be integrated in low impact vehicles, focusing on location of the associated warehouse. The evaluation is carried out by taking into account all the sources of cost.