‘Need based interactions required to understand automotive logistics’

Prem K Verma, Chairman, SIAM Logistics Group and Project Leader – Distribution & Logistics Strategy – Tata Motors said that SIAM’svision is to facilitate need-based interactions for developing a better understanding of automotive logistics and their requirements. He was speaking during the inaugural session of the sixth SIAM Automotive Logistics Conclave themed ‘Need for optimisation of resources’.

“The automobile industry wants to contribute over 12 percent to India’s GDP as a part of our vision for the Automotive Mission Plan (2016-26). Undoubtedly, the cost of logistics in India is high, especially in automotive logistics where 96% of transportation is done on roads. To cut down costs, we need to eliminate the waste in the system to make it cost-competitive in the market. The government needs to develop a policy and bring adequate infrastructure to promote multi-modal transportation in India,” Prem  K Verma said.

Delivering the keynote address, N Sivasailam, Special Secretary, Department of Logistics, Ministry of Commerce, Govt. of India said, “It is time we start prioritising freight, for which I have also requested a policy shift. We need a system to track cargo shipments, by having improved timetables to monitor the incoming and outgoing of the ships. We also need to work closely with the railway ministry to make the operations profitable for licences. The inland port at Pandu has railway and road connectivity as well as a port facility which can provide immense opportunities for auto industry’s development and employment. Brahmaputra which is more than 900 kms long offers huge scope for providing logistic solutions for the movement of goods across domestic and international channels.”

The inaugural session was concluded by B C Dutta, Vice President, Hyundai India, who urged all the stakeholders to join hands, work together and find solutions to bring the economy back on the track, and help tackle the recession undergoing in the automobile industry.

The second session talked about optimising outbound logistics and was chaired by Prem K Verma. Highlighting the changes in the automotive sector, Arun Malhotra, Ex MD, Nissan India said, “GST and the E-Way bill have brought immense changes in the system. E-way bill is a bottleneck that needs to be removed. He suggested that when policies are being designed, there should be someone who addresses the challenges. Customers are adapting to change and we need to follow the same path. With License quota raj coming to an end, we foresee the trend of multi-national logistics partners penetrating the Indian market.”

Umesh Bhanot, MD, APL Logistics Vascor Automotive Pvt Ltd said in his presentation, “When we talk about optimisating outbound logistics, it is important to recognise its various dimensions like finished vehicle logistics and after-market parts. Parameters of optimisation, as defined by OEMs, are quality of processes, cost, delivery and environmental impact. To achieve optimisation in transport mode, options available are roads (suited for short routes), rail (suited for long hauls), coastal shipping (for coast to coast movement) and finally, export (a function of ocean freights). OEMs are also experimenting with various distribution models for optimisation of stockyards. Intermodal rail is a viable transport mode to manage a service-sensitive, lean inventory of auto-parts supply chain.”

Highlighting the importance of collaboration of all stakeholders, Jasjit Sethi, CEO, TCI Supply Chain solutions said, “For optimising outbound logistics, we should consider LoT size (sell few, buy few), order to replenishment, mint condition, cost of logistics, network design, medium to long term plans, and carrier optimisation. The only way to win is by working together and respecting the ecosystem.”

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