A well-known concept that you might recognise from IKEA, flat-pack logistics involves manufacturing the core assemblies of a product so they can be shipped in a, well, flat-packed, compact and space efficient state. Although at Squad we’re not into making furniture, we have our own take on flatpack logistics to manufacture Squads this way. Once ready, our components and sub-assemblies will be transported for final assembly in local microfactories that are closer to the end-user. We are implementing this strategy to maximize efficiency, reduce impact from transportation and logistics and widen our market reach.
If it fits it ships
Nowadays, the most efficient way to transport goods is by sea freight, in standardized 40-foot (about 12 meters) containers. Typically, you can only fit 5 to 6 vehicles a pop, since they have to be packaged and protected from damage, salt, etc. So, when calculating the cost and impact of transporting one container, the total cost is divided over the 5 to 6 vehicles you’re transporting, which can be rather high.
This got us thinking. What if we can transport more of less. Just the chassis for example. Chassis can be stacked more efficiently (vertically) and don’t need as much protection as an entire car. You can see in our bird’s eye view, how we can fit 16 complete chassis in one container. Meaning, when calculating the cost and impact of transport of one container, the total cost is then divided over 16 chassis instead of 5 or 6 cars. Already quite an improvement!
If we squeeze this further, and go for the flat-packed stacking of the chassis in sub-assemblies, we can even have 24 chassis in one container. For fun, let’s assume a €1000 container transport cost. That would mean a transport price reduction from €200 to €42 per Squad.
That’s a factor of almost 5 better, compared to shipping a complete car. For the automotive sector, this makes a huge difference.
Local is best
Having flat-packed components allows more units per container, meaning that our flatpack supply chain logistics plan will minimize transportation costs and environmental impact per vehicle. At the same time, doing the final Squad assembly in local microfactories with spare parts storage and hubs, instead of in one central country where they are manufactured, will also mean that tariffs can be avoided. Also, assembling more locally means that sourcing can be localized. As we believe that true connection starts with meaningful involvement and contribution, we want to launch a new, local solution with local assembly for local people in each country and market, creating jobs and supporting businesses. It’s our vision for our Squad community.
In case you haven't heard...
Our crowdfunding campaign in on Republic Europe.
Now's your chance to be part of a change in urban mobility. More than 280 people have pledged their interest during the pre-registration phase. Now is the time to take advantage of this powerful momentum. Have a look! https://europe.republic.com/squad-mobility.
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Thank you, from the entire team, for continuing to share this journey with us. We are taking the Squad further towards production, and we genuinely want you by our side.
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