“Optionality is our strongest currency”

In conversation with David D’Annunzio, Global VP, Vertical Lead, Automotive, DP World. How does a global logistics company respond to the upheavals in the automotive industry? DP World manager David D’Annunzio came to BMW’s home from Texas to discuss new standards for electric-vehicle logistics, data as a basis for decision-making – and why logistics strategies should no longer be based on the cheapest, but on the smartest way.

Mr D’Annunzio, how would you describe the current state of global automotive supply chains?

 

We’re in a state of change. There are numerous external influences – from the debate about the right powertrain to geopolitical tensions and constantly changing customs regulations. Many manufacturers themselves don’t know exactly what their strategy looks like. Our task at DP World is therefore to remain flexible and to be able to act as soon as decisions are arrived at by our customers.

 

 

How do these uncertainties affect your logistics strategies?

 

We see ourselves as a downstream partner. If, for example, an OEM in the USA doesn’t know how to deal with short-term tariff increases – as was recently the case with 50% on steel – our options are also limited. What we can do, however, is expand our global capabilities and have as many solutions as possible ready to respond quickly when needed.

 

 

What role does the topic of resilience play in all this?

 

In a volatile environment, flexibility and options are key. The key word here is re-globalisation – today, every resilient supply chain needs alternatives. DP World pursues the approach of offering as many services as possible from a single source. In this way, we reduce complexity and increase our ability to react at speed. Optionality is our strongest currency.

 

 

How important are multimodal solutions in automotive logistics?

 

Very important. DP World combines classic terminal services with a growing logistics portfolio. In countries such as India, we operate our own rail and road transport networks. In other regions we rely on partnerships. The decisive factor is that where we have our own assets, we control capacities – a clear advantage in tense markets.

 

“It’s important to prioritise flexibility over short-term savings.”

 

 

How does electromobility change your operational requirements?

 

Batteries bring in new complexities – in handling, storage and recycling, amongst other factors. In the USA, for example, there are no uniform standards, often the rules of the local fire department apply. We’re in the strongest position in this field in Germany. At the same time we also have to continue to sell classic combustion engine parts – which means higher storage requirements and new processes.

 

 

What digital tools do you use?

 

We approach this from several fronts. AI-based automation in the warehouse, image recognition in pallet identification, forecasting models for demand development. If the data quality is right, we can significantly increase efficiency and accuracy. Without clean data, even the best technology is of little use, as you know.

 

 

What advice do you have for automotive logistics enterprises’ operational approaches over the next 18 months?

 

Prioritise flexibility over short-term savings. Strategic procurement alone is no longer enough – it’s about being prepared for the unpredictable. Those who integrate logistics into vehicle development at an early stage can build up more structurally efficient processes.

 

 

And your vision for DP World?

 

Today, according to Gartner, we’re still considered a niche provider. By 2030, we want to enter the top bracket – as a fully integrated logistics partner to the automotive industry.

 

 

How can logistics become a strategic strength in the automotive industry?

 

Logistics is often seen as a pure cost factor. If it is used correctly, however, it can offer a genuine competitive advantage. If we’re involved in the development of new vehicle platforms at an early stage, we can help shape processes, from packaging concepts to transport planning to efficiency in the warehouse. This reduces effort and errors before they occur.

 

 

Where do you see the greatest potential for innovation by 2030?

 

Clearly in automation and robotics, combined with AI. We’ve observed an increasing shortage of workers in logistics, especially in Europe. Many jobs have migrate to Eastern Europe or have been taken by foreign workers. With automation, we can’t only increase efficiency, but also plan reliably – this is crucial for stable supply chains.