“The B4 & B5 were created to address problems we saw in commercial trucking & last mile transport. Built from the ground up to be the solution to those issues, tackling sustainability, fleet transition & ultimately making the change to an EV fleet as seamless & efficient as possible.” – Bollinger (November 28th, 2023)
This is an amazing example of resiliency and adaptability. It reminds me of what Jon Mellon said when he was with NetApp regarding the importance of “running towards danger” by not only embracing changes in the market but also taking a leadership position.
Here is an excerpt from that article:
“In his July 5th, 2018 article, Prasanna Rajagopalan wrote about how NetApp “achieved a feat that few other IT hardware or software companies have achieved in history” by successfully transitioning the company’s products to “growth areas of the market.” In other words, we recognized that possible seismic change as a result of the cloud was not only on the near horizon it was inevitable. Rather than rail against the shift we didn’t just embrace it, we raced towards it at full speed.”
Of course, each journey is unique – and Bollinger’s is definitely unique.
What were some of the challenges in transitioning their supply chain from fossil fuel trucks to EVs, and can it be used as a case study for others to follow regardless of their industry sector?
I decided to dig a little deeper to find out using a Tracking Cost, Necessity, and Complexity (CNC) framework.
HIGH-LEVEL CNC FRAMEWORK
Tracking Cost
Electric cars ‘will be cheaper to produce than fossil fuel vehicles by 2027’ – Bloomberg NEF forecasts result of falling cost of making batteries as well as dedicated production lines. – The Guardian (May 2021)
The average cost to make a Tesla electric car is an impressive $36,000. The US-based electric car major sells its cheapest car, which is the Tesla Model 3 Rear-Wheel Drive at a starting price of $44,990. Per unit vehicle cost production for Tesla is currently $36,000 on an average. – Hindustan Times (January 2022)
EVs require at least 30-per-cent less labour than ICE vehicles to assemble but cost about 40-per-cent more to produce. That means North American automakers will need to slash costs and increase their market share over imported vehicles to survive. That could be harder than it sounds. – Globe & Mail (May 2023)
Tracking Necessity
Major HGV decarbonisation needed to meet net zero, report claims
The decarbonisation of the freight and logistics sector, which contributed £127 billion to the UK economy in 2022, is critical to achieving the UK government’s net zero goals. – Logistics Manager (November 2023)
Tracking Complexity
To run, EVs require six times the mineral input, by weight, of conventional vehicles, excluding steel and aluminum. These minerals, including cobalt, nickel, lithium and manganese, are finite resources. – Washington Post (April 2023)
WHAT IF YOU WERE THE BOLLINGER CPO?
Looking at the above from a simple and high-level illustration standpoint, how would you manage the transition to manufacturing EVs for the “commercial trucking & last mile transport” market?
What practical issues might you have with the following:
- supplier engagement and collaboration
- order tracking, PO management, and fulfillment (OTIF)
- maintaining an ongoing secure and compliant supply network, e.g. finite resources
The overall question is, what can we learn from this industry success story, and can we use it as a reference model or guide to achieve success in other industries?
30
Procurement Insights
How Did Bollinger Make The Transition To Manufacturing EV Commercial Trucks?
Posted on December 5, 2023
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“The B4 & B5 were created to address problems we saw in commercial trucking & last mile transport. Built from the ground up to be the solution to those issues, tackling sustainability, fleet transition & ultimately making the change to an EV fleet as seamless & efficient as possible.” – Bollinger (November 28th, 2023)
This is an amazing example of resiliency and adaptability. It reminds me of what Jon Mellon said when he was with NetApp regarding the importance of “running towards danger” by not only embracing changes in the market but also taking a leadership position.
Here is an excerpt from that article:
“In his July 5th, 2018 article, Prasanna Rajagopalan wrote about how NetApp “achieved a feat that few other IT hardware or software companies have achieved in history” by successfully transitioning the company’s products to “growth areas of the market.” In other words, we recognized that possible seismic change as a result of the cloud was not only on the near horizon it was inevitable. Rather than rail against the shift we didn’t just embrace it, we raced towards it at full speed.”
Of course, each journey is unique – and Bollinger’s is definitely unique.
What were some of the challenges in transitioning their supply chain from fossil fuel trucks to EVs, and can it be used as a case study for others to follow regardless of their industry sector?
I decided to dig a little deeper to find out using a Tracking Cost, Necessity, and Complexity (CNC) framework.
HIGH-LEVEL CNC FRAMEWORK
Tracking Cost
Electric cars ‘will be cheaper to produce than fossil fuel vehicles by 2027’ – Bloomberg NEF forecasts result of falling cost of making batteries as well as dedicated production lines. – The Guardian (May 2021)
The average cost to make a Tesla electric car is an impressive $36,000. The US-based electric car major sells its cheapest car, which is the Tesla Model 3 Rear-Wheel Drive at a starting price of $44,990. Per unit vehicle cost production for Tesla is currently $36,000 on an average. – Hindustan Times (January 2022)
EVs require at least 30-per-cent less labour than ICE vehicles to assemble but cost about 40-per-cent more to produce. That means North American automakers will need to slash costs and increase their market share over imported vehicles to survive. That could be harder than it sounds. – Globe & Mail (May 2023)
Tracking Necessity
Major HGV decarbonisation needed to meet net zero, report claims
The decarbonisation of the freight and logistics sector, which contributed £127 billion to the UK economy in 2022, is critical to achieving the UK government’s net zero goals. – Logistics Manager (November 2023)
Tracking Complexity
To run, EVs require six times the mineral input, by weight, of conventional vehicles, excluding steel and aluminum. These minerals, including cobalt, nickel, lithium and manganese, are finite resources. – Washington Post (April 2023)
WHAT IF YOU WERE THE BOLLINGER CPO?
Looking at the above from a simple and high-level illustration standpoint, how would you manage the transition to manufacturing EVs for the “commercial trucking & last mile transport” market?
What practical issues might you have with the following:
The overall question is, what can we learn from this industry success story, and can we use it as a reference model or guide to achieve success in other industries?
30
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