Paragon Automotive is warning that a predicted three per cent rise in new registrations will stress a supply chain that is already operating at capacity.
Paragon is reporting that capacity at the ports, logistics networks and de-fleet services are already operating at record volumes. It argues that manufacturers and fleet operators need to work more closely with the supply chain to accommodate the increased volumes expected over the next five years.
Commenting on the trend Ian Carlisle, chief executive officer of Paragon said: “The automotive industry is a real success story for UK plc, and is leading the sector’s recovery in Europe. But as records continue to be beaten, the supply chain is facing real challenges that can only be addressed by changing the way the industry works.
“A new partnership led approach is required to create capacity through the supply chain. This will enable new investment and help to smooth volumes. Our recent approach with Kia Motors UK demonstrates this principle well – locking in long-term, strategic relationships to yield the best value and future proofed solutions, for our customer. Paragon’s ability to identify new sites in the right locations, with planning permission, to help smooth volumes, is only possible when working in this manner.”
Paragon claims it is able to relieve some of the volume pressure through innovation in remarketing, by bringing the supply chain together to improve stock turn whilst improving residual values.