Automotive Logistics Digital Inspection of Vehicle Condition Makes Processes More Efficient

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From the factory to the new owner, many vehicles travel around the world. The logistics behind it juggles a variety of factors—from fluctuating demand that requires different transport capacities, to tracking technologies, and increasing customer expectations. At the center of it all is the effort to deliver vehicles efficiently and, above all, undamaged. AI-powered scanner technology can digitize and significantly speed up vehicle condition assessment at all transshipment points.

Vehicle logistics is a demanding business involving transport, storage, and quality control: By the time a new car buyer presses the start button for the first time, the vehicle has likely been transported halfway around the world—from the factory, through compounds acting as the link between production and delivery, to the distribution center or the dealer. The supply chains behind this are highly complex.

Overall, automotive logistics is a growth industry: in 2023, an estimated $288.83 billion was generated, with a projected growth rate of 6.4 percent. By 2032, the market is expected to exceed $500 billion. However, the challenges of vehicle logistics in a dynamic and global environment remain significant: demand fluctuates sharply, as does production output—logisticians must quickly adapt their capacities, even amid inflation-driven higher costs. Moreover, given the shortage of skilled workers, the capacities and availability of transport providers are limited or at capacity, ports and rail hubs are overloaded, resulting in waiting times.

With Truck, Train, And Ship to the Destination

The new vehicles are transported by trucks, trains, ships, and even by air freight. Specially equipped trucks and locomotives, as well as so-called Roll-on/Roll-off (Ro-Ro) ships, are designed for transport, with optimized loading methods and safety measures such as straps or wheel chocks securing the valuable cargo. The transport is digitally monitored—on rail, for instance, sensors are used to measure vibrations and shocks that could potentially damage the vehicles, while on ships, temperature and humidity can be measured.

As vehicles can be damaged en route to their destination across various transshipment points and transport methods, quality assurance is an integral part of logistics processes. It plays a crucial role, particularly at these so-called transfer points, and is conducted on compounds where thousands of vehicles are stored temporarily, both new and used, before onward transport. Here, technical checks, minor repairs, and reworks take place, such as removing protective films or mounting accessories. The PDI (Pre-Delivery Inspection) is also carried out as preparation for delivery to dealers or end customers, including vehicle enhancements if required.

Limit And Detect Damages

To transport vehicles safely and without damage to their destination, avoiding damage is a priority—even the smallest scratches mean a loss in value and follow-up costs. Electric vehicles present a particular challenge in this regard: their batteries are sensitive to extreme temperatures, among other factors.

In general, damages can be prevented with the right equipment: protective covers, vehicle covers, and padding shield the body from scratches and weather influences; proper securing using straps and chocks specifically designed for the vehicle helps minimize damage, as does standardized handling of vehicles during all transport processes such as loading and unloading. IoT sensors can evaluate the environment of the vehicles and detect problematic transport conditions like shocks or vibrations, allowing adjustments to routes or transport methods.

Who Caused the Damage?

However, since damages generally cannot be completely avoided, it must be determined who is responsible. Pre-delivery inspection (PDI) and other quality controls can be automated using AI-powered scanners.

We have created a way to digitize and significantly accelerate vehicle condition inspections.

Arndt Hüsges, Founder and CEO of the Hüsges Group

The independent automotive appraisal organization Hüsges-Gruppe, which has been active in the automotive segment for over 65 years, has founded the joint venture (JV) Instavalo with the Munich-based (Germany) MCON Group, responsible for the distribution of these scanners. Vehicles pass through the scanners, columns, and setups with DSLR cameras that capture the entire body and underbody: in a single scanning process, 400 images are generated per car, creating a data volume of four gigabytes. All details, such as tire tread depth or tire pressure, can be recorded.

For scanning the interior, a data headset currently being tested is worn by the driver. Artificial intelligence (AI) evaluates the recordings afterward: it is based on various datasets and can detect about 80 percent of the damage to vehicles, whether scratches, paint damage, or dents. Especially with sensitive electric vehicles, minor defects can have major consequences—if the battery is affected, there is even a risk of fire. The scanners can examine the underbody of vehicles and rule out damage. This ensures the safe transport of electric vehicles as well.

The Human is Indispensable

In addition to the scanner technology, so-called Quick Checkers, certified automotive experts, are employed. “With this hybrid solution, we achieve a harmonious blend of AI and human expertise, allowing us to deliver optimal results,” Hüsges explains further. The Quick Checkers can verify the results and ensure that all damages are identified. Thanks to the human component, legally sound reports can also be created.

To adapt to various conditions and specific needs of compounds and logistics centers, the scanners can be equipped with additional cameras, for example, to specifically capture rims, or they can be expanded to cover oversized vehicles. If vehicle images are taken at every transshipment point, a precise record is created of the condition in which a vehicle arrived at each location—enabling digital documentation of its condition across all stations. This allows damages to be traced, reducing the likelihood of them going unnoticed. The use of scanners also speeds up condition assessment overall, as thousands of vehicles can be processed per day. This accelerates the entire process while ensuring quality assurance.

It would also be possible to install the scanners directly on the shipping companies' vessels that transport vehicles globally. Damage can also occur during shunting operations on the car carriers.

Conclusion

Vehicle logisticians must respond flexibly to the dynamic market, maintain efficient processes to save costs, and ensure that vehicles leave their compounds in impeccable condition. Vehicle condition checks and quality assurance measures, such as pre-delivery inspections (PDI), can be digitized and automated with AI-powered scanners—enabling seamless traceability of vehicle conditions, lower error rates, and faster processing.

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