Post on 05-Apr-2018
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The Logist ics Challengesof India
Aut omot ive Logist ics I ndia Conference3 rd December, 09, Pune
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Logist ics is an I nt egrated Management of t heFlow of Goods & I nformat ion from t he Suppliert o the Customer & Back
Logistics
Logistics
Supplier ReplenishmentTransportation
InboundOperations
TransportationOutbound
AssociateStores
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Perspectiveon
Tw o Wheeler I ndust ry
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Overall Volumes : I ndian 2-Wheeler I ndust ry
5.6
6.6
7.6
8.5
8.18.5
0
2
4
6
8
10
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Nos. in Million
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16%
4%4%
76%
Passenger Vehicles ( PVs ) Commercial Vehicles (CVs)
Three Wheelers Two wheelers
In terms of Nos.
Tot al Domest ic Vehicle Sales in 2008-09 : 9 .72 Mil lion
I ndian Automobile I ndust ry -
Segmentation
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Size ~ 7.5 million Unit s (08 09)
Tw o-w heeler Segment s - Domest ic
Scooter
16%
Mopeds
6%
Motorcycles
78%
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Second Largest in t he w orld
5 Tim es t he size of I ndian Passenger Car Market
1 m illion I ncrement al Cust omers every year
Over 16000+ Customer Touch point s
Over Half a mil l ion Employed Direct / I ndirect
I ndian Tw o Wheeler I ndust rySource: SIAM
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HERO HONDA MOTORS LI MI TEDA Joint Vent ure w it h Honda Motor Co. Ltd., Japan
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Plant s & Off ices
Haridwar Plant
Corporate Office, New Delhi
Registered & Corporate Offices
North Zone Office, New Delhi
West ZoneOffice, Pune
South Zone Office,Bangalore
East Zone Office,Kolkata
Zonal Offices
Dharuhera Plant
Gurgaon Plant
Plants
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Dharuhera Plant (Haryana)
Area 2,41,000 Sq. Mt rs.
Product ion Started- 1985
Capacit y 6000 VPD
Gurgaon Plant (Haryana)
Area 2,55,000 Sq. Mtrs.
Product ion St arted- 1997
Capacit y 6000 VPD
Haridw ar Plant (Ut taranchal)
Area 4,69,000 Sq. Mtrs.
Product ion St arted- April 2008
Capacit y 5000 VPD
PLANTS : Area & Product ion Capacit y
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Fig. in Million (Nos.)
Sales Trend 2 Wheelers
04-05 05-06 06-07 07-08 08-09
3.72
3.34
2.62
3.00
3.34
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PARTS OPERATI ONS
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9 To achieve the goal of Highest Customer Sat isfact ion
9 To obtain t he Best Serv ice Rat io
9 To make available t he Part s at Reasonable Pr ice
9 To deliver t he consignment s w it h Shor t est Lead Tim e
9 To maint ain t he Opt imum Safet y
Obj ect ives of Part s Division
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Service Support Coverage
Regular Models - 16
Non Current Models - 37
Tot al Models - 53
Tot al 2 Wheeler Populat ion - 25.5 Mil lion
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Nat ional Part s Cent re
Total Covered Area - 19500 Sq. Mt rs.
Par ts Range (SKUs) - 13000 Nos.
Manpow er - 510 Nos.
Operat ions Span - 2 Shif t s
Channel Coverage - 735
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HHML
Dealer Stockist
Other Channel Part ners/Replacement Market
Dist r ibut ion Flow
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Logist ics Challenges
How can I manage the stocksof Non Current Parts?
How can I manage the stocksof Non Current Parts?
How do I reduce the LeadTime for Order Execution?
How can I Identify and co-
relate Parts accurately?
How do I reduce the LeadTime for Order Execution?
How can I Identify and co-
relate Parts accurately?
How can I manageDemand Fluctuation?
How do I manageSKUs Proliferation?
How do I tackle the issueof Counterfeiting?
How can I manageDemand Fluctuation?
How do I manageSKUs Proliferation?
How do I tackle the issueof Counterfeiting?
How can I reduceInventory?
How do I controlDiscrepancy in Stocks?
How can I reduceInventory?
How do I controlDiscrepancy in Stocks?
InternalProcessing
InternalProcessing
InboundInbound OutboundOutbound
Complexity Management
Obsolescence Management
Delivery Management
Quality Management
Cost Management
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Demand Fluctuat ion
Const ant Monit oring t o capture dynamism ofCategory-f lip of Part s
Flexible Product ion Capacit ies at Vendors End
Logist ics Challenges & Solut ions
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Exponent ial Grow th in SKUs
Opt imal Ut il izat ion of Storage Space
Re-addressing of Part s t o accommodate Flexibil it y
Logist ics Challenges & Solut ions
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Counterfeit ing I ssue
High Secur it y MRP Label
Special Design Packaging
Customer Educat ion
- I nformat ion on I nternet- I nform at ion in Ow ners Manual
Logist ics Challenges & Solut ions
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High I nventory
Daily Supply of Fast Moving / High Volume Part s
DOL (Direct -On-Line) supply st atus conferredon Vendors
Logist ics Challenges & Solut ions
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Discrepancy in Stocks
Snap shot Alm anac at Receipt St age
End-to-End Bar Coding in Operat ions
Usage of Scanned Data for generat ion ofPacking Slip & I nvoice
Logist ics Challenges & Solut ions
Logist ics Challenges & Solut ions
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Higher Lead Time
On- line Punching of Orders
On- line Tracking of Various Stages of Order Execut ion
Loading of Out bound-shipment based on Scanned Data
Uploading of Despatch Details for Channel Part ners
Uploading of Receipt Det ails as POD
Logist ics Challenges & Solut ions
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Diff icult y in I dent if icat ion /
Co-relat ion of Part s
e-Catalogues for all Regular & Non Current Modelsfor Channel Part ners
Logist ics Challenges & Solut ions
e-Catalogue CD for Replacement Market
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Non Current / Obsolet e Part s
Maintenance of Dies & Gauges at Vendors End
I ncreased inventory t o accommodate Opt imumBatch Size
Logist ics Challenges & Solut ions
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Fut ure Out look
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Economy is show ing an upw ard t rend and expect edto stay on a decent Grow th Traject ory
Motorcycles w ill cont inue to be t he mainstay ofTw o-Wheeler Grow th
Motorcycles t o grow at CAGR of 8% to 10%
Gearless Scooters at 12% to 15%
Overall Tw o-Wheeler CAGR expected t o be
9% to 10% in t he next f ive years
Fut ure Out look
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Focus Area
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A more robust Solut ion needs to be ident if ied for Non-CurrentPart s in t he w ake of shor t ened Product Life-Cycle
Count erfeit Part s menace needs t o be curbed w it h t he iron hand in
associat ion w it h I ndust ry, SI AM & st rong enforcement of Law
Redressal of Logist ic I ssues associated w it h t he for t hcomingimplementation of t he GST
To share / exchange thought s amongst t he Logist ics Fratern it y t oimprove Genuine Part s Business for w hich Aut omot ive Logist ics
has provided a decent plat form
Focus Area
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THANKS