| Written by Mark Buzinkay
The Role of Vehicle Processing Centers
Automotive manufacturers need to ship their finished vehicles to dealers before they reach the final customers. Brands like Volkswagen own dozens of factories globally to serve their international customer base. The produced cars must then be delivered within the country of origin, to neighbouring countries, or overseas. This is where Vehicle Processing Centers (VPC) come into play and act as logistic hubs with their vehicle yard.
Let's have a look at one example:
The Baltimore, Maryland Vehicle Processing Center (VPC) is one of three VPC facilities in the United States that serve as the first stop for new imported Mercedes-Benz vehicles destined for Mercedes-Benz dealerships in this country. The Baltimore VPC is the largest center for quality inspections and processes all Mercedes-Benz passenger car vehicles for the northeast and midwestern parts of the country prior to distribution to the dealerships. The VPC has the ability to perform vehicle inspections, factory campaigns, full paint, and body and mechanical repairs. MBUSA operates two other VPCs in the United States: Brunswick, Georgia and Long Beach, California.
Case study: Toyota Vehicle Processing Centers worldwide
As of the latest available data, Toyota operates more than 50 manufacturing plants in worldwide. These facilities produce a variety of vehicles, including cars, trucks, and SUVs, as well as components like engines and transmissions. Here's an overview of Toyota's major car manufacturing plants:
- Asia: 16 factories in Japan, and another 19 in the rest of Asia (mostly in China, Thailand, Indonesia, India)
- North America: 6 plants in the United States, 2 in Canada, and 2 in Mexico.
- South America: 3 plants
- Europe: in total 5 plants
- Africa: 1 plant in South Africa
Combined, Toyota produces more than 10 million (!) vehicles per year globally. The logistics to move finished units from the plants to the markets and customers involves approximately 20-30 Vehicle Processing Centers.
However, here is an overview based on available information:
- North America: Toyota operates 8-10 VPCs in the United States & Canada, strategically located near major ports and transportation hubs. Some of the key locations include:
- Port of Long Beach, California
- Port of Portland, Oregon
- Port of Newark, New Jersey
- Port of Jacksonville, Florida
- Port of Benicia, California
- Port of Houston, Texas
- Europe: Toyota also has several Vehicle Processing Centers across Europe, particularly near significant ports in countries like the United Kingdom, Belgium, Germany and France. The exact number varies, but it's likely in a similar range as North America.
- Asia and Oceania: In Toyota's home market of Japan and in key markets like Australia and Thailand, there are multiple VPCs, primarily focusing on export and local distribution.
- Other Regions: Toyota also operates VPCs in other regions, including South America and the Middle East.
For a regional perspective, have a look at finished cars logistics in Mexico.
How are finished vehicles transported to and from Vehicle Processing Centers?
Trucking
Vehicle transport services are the publicly most visible ones. Trucking means normally transporting vehicles on a trailer hitched to a large truck. Trailers can have a capacity of up to 14 vehicles. Expert pickup truck drivers perform the precarious loading and unloading process.
Transport can be open-air car transport or enclosed (with walls and a roof). Open-air car transport is less expensive, but it exposes vehicles to potential harm from roads like rocks and pebbles and weather conditions like rain and hail.
Transport through Rail
Shipping vehicles across the country by train is becoming increasingly common because it is less expensive than other methods, such as trucking. Rail transport uses autoracks to accommodate up to 320 vehicles at one time.
Autoracks are made of metal and can be enclosed to protect vehicles from the elements. Metal "racks" inside create decks within the rail car. Having multiple decks within the rail cars maximizes shipping space by allowing vehicles to be safely stacked during transport without causing damage to the vehicle. Traditionally, there are two kinds of autoracks: bi-level, which has two levels and can be used for any vehicle type, and tri-level, which has three and is typically used for smaller passenger vehicles.
This transportation option is suitable for vehicles weighing less than ten tons. The rail routes that run across a country are limited to a few cities only, so reloading cars onto trailers for the last mile to a dealer can be necessary.
Transport through Sea
Transportation by ship includes a range of vehicles starting from the common cars to the large ones like trucks and semi-trucks. This method is very efficient and comparatively less expensive if transporting vehicles across countries.
Shipping vehicles by sea usually involves the use of a ship specifically designed for vehicle transport, known as a "RORO" vessel. RORO stands for Roll On, Roll Off, and is a term used to describe how vehicles are loaded onto ships. This has an advantage of speed in terms of duration compared to lift-on/lift-off shipping.
RoRo vessels used for importing/exporting cars en masse are called pure car carriers (PCC) or pure car/truck carriers (PCTC) when cars, trucks, buses, and other vehicles are transported. The largest deep-sea car carriers in service can carry up to 8,000 car equivalent units (CEU).
Typical jobs performed by Vehicle Processing Centers
Pre Delivery Inspection
- Carwash: automated cleaning of cars
- Dewax: removal of the protecting paraffin or co-polymer layer from the cars
- Inspection of cars in accordance with the instructions of the customer (e.g. quality audit on every vehicle prior to it exiting the VPC)
- CarDoc: provide manuals, affix stickers, etc.
- Wrapping: apply or remove a special protective foil on new cars (e.g. rap-guard for paint protection)
- Preparation: lease vehicles
- Maintenance of long-term stored vehicles
Accessories
Typically, VPC technicians have broad garage and bodywork experience to perform all kinds of assembling works properly.
- Installation of all accessories: air conditioning, radio/CD, GPS, styling kits, tinted windows, hardtops, leather interior, sunroofs, etc.
- Execution of factory reworks
- Construction of special series: conversion light freight, installation of cabinets, cross country, preheater, rear-end carrier, publicity stickers, etc.
Repair
In case the vehicles suffered light damage during the transport, Vehicle Processing Centres are able to repair the following:
- Paint and body repair of cars in accordance with OEM quality standard
- Use of spectrometry and UV technology
Underbody Protection (corrosion protection)
Underbody coating provides long-term protection from corrosion to a car's underbody. It also protects parts like internal body panels, frame rails, and other inner cavities that are not physically accessible but are prone to corrosion.
Inventory Management
The complex processes of managing thousands of vehicles, tasks, parking spaces, and workforce require an intelligent system to operate the Vehicle Processing Center efficiently.
In general, such VPC management software gives complete visibility into the vehicles in the Vehicle Processing Center. All information about deliveries, locations, and statuses can be retrieved at any time. A central system controls the planning and operational processes for each vehicle movement. Typically, handhelds can receive all information and orders for a true mobile experience and operation. At the core of such a vehicle yard management system is the ability to track each vehicle in real-time throughout the process.
FAQs - Vehicle Processing Centers
What is the primary function of a Vehicle Processing Center (VPC)?
A Vehicle Processing Center (VPC) serves as a crucial logistical hub in the automotive industry, where new vehicles undergo inspections, customization, and preparation before being distributed to dealerships. These centers ensure that vehicles meet quality standards and are equipped with any necessary accessories or modifications before they reach customers.
How are vehicles transported to and from Vehicle Processing Centers?
Vehicles are transported to and from Vehicle Processing Centers using various methods, including trucking, rail, and sea transport. Trucks are commonly used for shorter distances and final deliveries to dealerships, while trains and ships are used for long-distance and international transport. Each method offers different advantages in terms of cost, capacity, and protection of the vehicles during transit.
What types of services do VPCs provide beyond vehicle inspection?
Beyond inspections, VPCs offer a range of services including pre-delivery inspections, installation of accessories, repairs for any damages incurred during transport, and inventory management. They also handle the maintenance of long-term stored vehicles, apply protective coatings, and manage complex logistics to track and process thousands of vehicles efficiently.
Takeaway
Vehicle Processing Centers are vital to the automotive supply chain, ensuring vehicles are thoroughly inspected, customized, and ready for distribution. As global production scales, the complexity of managing these operations increases. To maintain efficiency and meet market demands, VPCs must streamline their processes, minimizing delays and errors. This is where advanced vehicle logistics software becomes essential, offering real-time tracking, efficient task management, and comprehensive inventory control. Embracing these technological tools is crucial for optimizing operations, reducing costs, and ensuring vehicles reach customers promptly and in perfect condition.
Delve deeper into one of our core topics: Car logistics
Sources:
(1) https://www.icoterminals.com/
(2) https://www.ecgassociation.eu/
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