Automotive Logistics (Finished Vehicle Logistics) · PDF fileAutomotive Logistics (Finished...
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SCM/Purchase-Logistics | Nov -2016 Automotive Logistics (Finished Vehicle Logistics)
Transcript of Automotive Logistics (Finished Vehicle Logistics) · PDF fileAutomotive Logistics (Finished...
SCM/Purchase-Logistics | Nov -2016
Automotive Logistics
(Finished Vehicle Logistics)
| 2 Internal
Country Year LPI Rank
Germany 2016 1
Luxembourg 2016 2
Sweden 2016 3
Netherlands 2016 4
Singapore 2016 5
Belgium 2016 6
Austria 2016 7
United Kingdom 2016 8
Hong Kong, China 2016 9
United States 2016 10
Switzerland 2016 11
Japan 2016 12
United Arab Emirates 2016 13
Canada 2016 14
Finland 2016 15
France 2016 16
Country Year LPI Rank
Denmark 2016 17
Ireland 2016 18
Australia 2016 19
South Africa 2016 20
Italy 2016 21
Norway 2016 22
Spain 2016 23
Korea, Rep. 2016 24
Taiwan 2016 25
Czech Republic 2016 26
China 2016 27
Israel 2016 28
Lithuania 2016 29
Qatar 2016 30
Hungary 2016 31
Malaysia 2016 32
Poland 2016 33
Turkey 2016 34
India 2016 35
India Improved Ranking from 54 to 35
Global Logistics Performance Ranking
| 3 Internal
Quality of Infrastructure Vs Investment
Finished Vehicle
Contribution is Key
Global Snap Shot
| 4 Internal
Need For Flexibility in Transport Capabilities:
Current bottle necks
Road Transport Infrastructure Improvement constraint
Car Consolidation model for remote locations
Reducing damages & defects
Need For Flexibility
Multimodal Expectation from Rail Mode
Ocean Mode Expectation
Post GST Business Model
| 5 Internal
Need simplified System to address below factors
TOLL Plaza Waiting Time
RTO Check Post (Regional Transport Officer)
ST Check Post (Sales Tax)
OCTORI (Local Body Tax)
Traffic /Congestion
No Entry Restriction (Tier 1 Catering Business model)
Improved Infrastructure Accessibility to Tier 2,Tier 3 Cities
Post GST expect the Bottle necks to be reduced in phased manner
Bottleneck from Road Transportation
| 6 Internal
Need For Flexibility in Transport Capabilities:
Current bottle necks
Road Transport Infrastructure Improvement constraint
Car Consolidation model for remote locations
Reducing damages & defects
Need For Flexibility
Multimodal Expectation from Rail Mode
Ocean Mode Expectation
Post GST Business Model
| 7 Internal
Hyundai
Renault - Nissan
Ford
Consolidation center,
Collect cars based on
OEM requirement
Dealer A
Dealer B
Collaborative approach with other OEM
Improved business opportunity for Transporters
Improved customer satisfaction for Dealers/ Customers
Car Consolidation model for remote locations
• Every Month 6 to 8% Volume become back log due to Min Order Quantity
• Part Load allocated cars waiting time is more
Present Condition:
Proposed Model:
Benefits:
| 8 Internal
Need For Flexibility in Transport Capabilities:
Current bottle necks
Road Transport Infrastructure Improvement constraint
Car Consolidation model for remote locations
Reducing damages & defects
Need For Flexibility
Multimodal Expectation from Rail Mode
Ocean Mode Expectation
Post GST Business Model
| 9 Internal
Flexibility in CBU Transportation- Rail Mode:
Expectation from Rail Mode Transportation
Collaboration with All region OEM to achieve this Rail Mode successfully
Accessibility to Tier 2 ,Tier 3 Cities
Improved TAT to Cater Parts/components by Rail mode
Fuel Review as per crude price variation to become competitive
Incentive for Rail mode
| 10 Internal
Need For Flexibility in Transport Capabilities:
Current bottle necks
Road Transport Infrastructure Improvement constraint
Car Consolidation model for remote locations
Reducing damages & defects
Need For Flexibility
Multimodal Expectation from Rail Mode
Ocean Mode Expectation
Post GST Business Model
| 11 Internal
Incentives for Costal Movement (FG Cars movement)
Dedicated Port facilities for Coastal vessels such as berths, storage
yards (Ability to handle volumes)
Concessional Wharf age Fees & Port Cost as compared to
International Trade routes
Rationalization of Bunker prices
Carbon credit scheme
Flexibility on Local Transportation permit Issues (For Trailers)
Ocean Mode – Expectation From Government:
| 12 Internal
Need For Flexibility in Transport Capabilities:
Current bottle necks
Road Transport Infrastructure Improvement constraint
Car Consolidation model for remote locations
Reducing damages & defects
Need For Flexibility
Multimodal Expectation from Rail Mode
Ocean Mode Expectation
Post GST Business Model
| 13 Internal
Plant Stockyard (OEM)
Dealerships
Disadvantage
- Longer Transit time
- Dealer Working Capital Increased Flow
- Higher stock capacity at 1 location
- Physical effort to locate the vehicle
CBU Distribution – Current System
| 14 Internal
Primary Movement
Secondary Movement
Plant to Dealers
Regional Hub
RN PLANT
West Hub
North Hub East Hub
RN Dealers
Current Model Proposed- Regional
Location of Hub as per Sales Mix Growth
| 15 Internal
Merits
- Providing additional stock yard to dealerships hence reduction in the
holding cost of dealerships
- Better truck rotation during lean season
- Ease Availability to customers/ Dealers
- Additional storage area near to Customers
- Reduction in Transit time
- Better stock option / Planning with dealerships due to more stock
- It reduces the over all burden at OEM location
Demerits:
-Multiple Handing
-Taxation Structure ?
-It increases the cost of Manufacturer as the hub is managed by OEM
Flexibility of CBU Distribution – By Regional Hubs
RN Started working on Hub & Spoke Distribution model
| 16 Internal
Need For Flexibility in Transport Capabilities:
Current bottle necks
Road Transport Infrastructure Improvement constraint
Car Consolidation model for remote locations
Reducing damages & defects
Need For Flexibility
Multimodal Expectation from Rail Mode
Ocean Mode Expectation
Post GST Business Model
| 17 Internal
Thank You
