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2024 Update Coming Soon Published Date: Apr 2022 Number of Pages: 132
The automotive supply chain and logistics business has seen tremendous transformation in recent years and may become unrecognizable in the next few years as a result of trends.
These developments include the expected widespread adoption of electric vehicles (EVs), with all of the ramifications for engine manufacturing and spare parts logistics, to mention just two.
Logistics is the collection of operations related with the acquisition, transportation, storage, and delivery of supply chain goods (i.e., products in all stages of manufacture, service, and information).
Logistics includes transportation, distribution, warehousing, material handling, and stock control, and it works closely with production.
The supply chain grows more intricate for items such as autos, which involve various products, technology, and processes.
The Indian Car Logistics industry is characterised by the complexity of the supply chain, which extends from automotive dealers back via numerous layers or tiers of suppliers.
The automobile company’s supplier network encompasses hundreds of companies that supply everything from basic materials like steel and plastics to complicated systems like gearboxes, brakes, and engines.
Automobile logistics refers to the movement of raw materials, components, vehicles, and spare parts through the stages of automotive acquisition, manufacture, and sales.
Automotive logistics encompasses supply chain for raw materials and components, garage logistics for the manufacturing process, sales logistics for vehicles and spare parts, as well as object purchasing, transportation, storage, offloading, distribution processing shipment, and processing information.
The Indian car sector is a key contributor to the Indian economy, having surpassed Germany to become the world’s fourth largest auto market, with sales growing year on year.
Two-wheelers dominate the business and account for a sizable portion of domestic automotive sales. In India, the automotive logistics business has grown quicker than other sectors.
As globalization, technological improvements, and rising degrees of outsourcing continue to drive the global logistics services industry, previously operational and segregated operations such as transportation and warehousing have transformed into integrated transport control.
Automotive logistics is a significant component of automotive businesses, as well as a logistic activity with a high level of complexity in the logistics sector.
When compared to other logistical operations, Automotive Logistics is capital-intensive, technology-intensive, and expertise.
The Indian automotive logistics industry environment today is characterized by rising complexity and a variety of challenges. The speed of change of these parameters breath-taking and is driving increasing complexity in the logistics ecosystem.
Former competitiveness considerations such as “cheap labour, favourable exchange rates, and concessional duty structures” are no longer applicable, and so adopting supply chain techniques is essential to address the difficulties of a dynamic system.
Pune is known as the “Detroit of India,” and Chakan is one of India’s most important hubs for global automakers. At Chakan, the automobile industry accounts for more than 60% of APM Terminals’ clients.
In the Indian automobile sector, business environmental variables and government regulations have the greatest impact on supply chain competitiveness, followed by cost advantage and buyer-supplier relationships.
Because labour and raw component requirements are essentially the same across the car component manufacturing industry, these characteristics do not contribute to any competitive advantage.
The Indian Market of Automotive Logistics Market can be segmented into following categories for further analysis.
Logistics 4.0 technologies have emerged as increasingly important tools in the automotive logistics sector in recent years, with an expanding quantity of OEMs, tier suppliers, and logistics providers investigating the potential advantages of their deployment: improved operational efficiency, correctness, and recognition, efficient asset management, and two – advance workforce capabilities.
Seat has been able to speed up and integrate all of its operations and elements with the use of the Internet of Things (IoT) – the networked connection of physical items to enable real-time data visualization – and the automation of logistical flows.
Recently, automated guided vehicles (AGVs) were introduced to automate in-house logistics flows, artificial vision was used to verify quality and security, and joint robot technology was applied for logistics picking.
In terms of outbound procedures, RFID has assisted the OEM in automating its loading validation processes, enhancing compound productivity and efficiency.
Once reaching the consumption point, the employment of artificial vision systems allows for quality and security validations, as well as the automation of the entire line feeding process.
Drone technology is emerging as a new way to exploit our airspace to automate internal procedures and deliveries.
Augmented reality (AR) is bridging the physical and digital worlds by assisting in the selection of parts and technology for bionic augmentation such as exoskeletons and sophisticated wearable devices.
These have the ability to broaden the conventional physical boundaries, hence facilitating material handling. RFID technology can also be used to automate inventory and interior tracking activities.
A passive tag is affixed to the container or part being tracked, and it is detected by specialised antennae when it passes through the gateways.
Other key technologies supporting the Indian Automotive Logistics Market’s Logistics 4.0 systems include industrial WLAN, RFID, RTLS (indoor GPS) and DMC (Data Matrix Code) for accurate control as well as free route planning (ANS+), PLS (Proximity Laser Scanner) mechanisation controllers, AI modules, camera reader devices, controls applications, and framework bundles.
The changes are numerous, ranging from Mahindra & Mahindra’s expansion to Ford and General Motors’ continued investment.
Even Premier Automobiles, which dominated India’s automotive business before to market liberalization, is making a comeback with a tiny SUV.
Maruti Suzuki, which is closer to the logistics industry, is about to establish a new yard in Nagpur, central India, with a capacity of 90,000 vehicles.
According to reports, four shortlisted service providers are bidding for the contract.
Maruti Suzuki already has a logistics centre in Bangalore from which it serves the southern region. It’s widely assumed that Hyundai Motors is considering an internal plan to build a yard in Assam to serve the country’s north-east.
On the inbound side, some analysts predict India will favour operators who own and manage a larger portion of their transportation assets.
Indian logistics, according to the CKD shipping of automotive and aeronautical vehicles, would gain from asset consolidation in this way.
For 95 percent of outbound logistics in India, trucks are still the primary mode of transport. The Railway Board for state railways, on the other hand, believes rail will acquire traction shortly.
Railways should never be underestimated; their capabilities are far greater. Rail for automobiles was created utilizing specialized wagons rather than containers, but the current dearth of suitable wagon designs favors container use. Other sectors of the supply chain, such as inbound to manufacturing, may have promise as well, although the short-term outlook is grim at the moment.
Alternatives would almost certainly be sought by the industry. Packaging would be a driving force in changing the logistics of parts from suppliers to OEMs.
A joint venture between NYK and ANJI Automotive Logistics known as NYKANJI Car Transportation has been purchased by Yusen Logistics, which now owns 20% of Shanghai NYK-ANJI Logistics.
For the Shanghai Automotive Industry Corporation, to which ANJI belongs, as well as a number of other automakers, NYKANJI has managed ground transportation for finished automobiles in China for the past ten years.
Shareholding in the new firm is now split between ANJI (51%), NYK (29%), and Yusen Logistics (20 percent). The new partnership aims to grow their company in logistics for finished cars and auto parts.
The largest fleet of car carriers in the world is run by NYK, ANJI has a significant presence in the warehouse and transportation sector for the Chinese automobile industry, and Yusen Logistics is a global ocean/air freight forwarding and contract logistics network.
The three businesses intend to provide an integrated automobile logistics solution that includes the shipping of finished vehicles, aftermarket components, and parts from other countries.
In order to establish a joint venture that specialises in the transportation of finished autos using automobile freight trains, NYK Auto Logistics India (NALI) and Adani Logistics (ALL) inked a contract.
To reach the non-automotive segments, Tata Group company Drive India Enterprise Solutions Limited (DIESL), owned by TVS Logistics Services Limited (TVS LSL), has acquired a 100% interest.
With an investment of up to Rs 250 crore, Tata Opportunities Fund (TOF) would acquire a small share in TVS LSL.
This money will be used to pay for the purchase as well as other operations. This acquisition gives TVS LSL a fresh opportunity to serve underserved or just underserved non-auto markets.
The acquisition is contingent on receiving the necessary regulatory approvals, notably the nod from India’s Competition Commission (CCI).
Both TVS LSL and DIESL have complementary strengths and opportunities across industries and regions, and this acquisition enables TVS LSL to expand its clientele within DIESL’s consumer durables target markets, which include FMCG, retail, technology, and telecommunications, as well as expand its business into non-auto sectors.
We have expanded our service to include last-mile delivery, demand forecasting, and technological logistics as a result of our international acquisitions.
Investment in logistics has become necessary as e-retail infects the market, and this acquisition could capture this prospective market because DIESL has a strong base in this industry.
The fund thinks that the new government’s focus on infrastructure investment and tax reform, particularly with regard to the goods and services tax, will be an encouraging lean-forward strategy and that this will encourage third-party logistics (3PL) companies to provide top-notch solutions that signal win-win manoeuvring.
The top courier and integrated express package distribution firm in South Asia, Blue Dart, and DHL, the world’s largest logistics provider, have launched a ground-breaking logistics solution to assist original equipment manufacturers during the introduction of new car models in India and other countries.
DHL‘s solution covers the full go-to-market procedure, in contrast to most logistics providers, which concentrate on inbound to manufacturing and after sales logistics. The company’s four business groups in India—DHL Express, DHL Global Forwarding, DHL Supply Chain, and Blue Dart—have developed a variety of logistics modules that clients can use together or separately.
DHL – Blue Dart’s targeted automotive solution will benefit firms by minimizing supply chain risks, lowering third party expenses, increasing efficiency, and improving visibility as new product launches in the automotive industry become more complicated and expensive. This calls for perfect synchronization between a number of parties, many of whom are not even on the same continent.
The three stages of vehicle evolution and marketing are the focus of the new service from DHL-Blue Dart: During the development and research stage. DHL – Blue Dart offers specialized packaging for prototypes, customs process management, and shipping with a high level of security and confidentiality to enable the dispatch of pre-production models.
DHL – Blue Dart is capable of effectively managing and controlling the complex flow of engineering samples from hundreds of vendors based in different regions to the engineering research centers of OEMs and vice versa throughout the trial production stage.
Last but not least, DHL – Blue Dart offers launch communication services during the commercial production phase, including the efficient distribution of direct mailers or parcels, the mobility of exhibit cars for auto test events, or official media presentations.
The DHL – Blue Dart ‘Lead Logistics Provider’ service offering in India includes risk management as a key component. Through this service, the company lowers logistics costs for its clients while also enhancing supply chain performance metrics.
Additionally, by organizing their delivery to original equipment manufacturers (OEMs), DHL – Blue Dart offers full logistical solutions for Tier-1 and Tier-2 component makers. only-in-Time deliveries are guaranteed to all of their plants, not only those in India, thanks to the effective supply chain assistance.
India is predicted to become the preferred location in the world for the design and production of automobiles and auto parts, and DHL – Blue Dart is in a good position to offer cost-effective, customized solutions to ensure increased productivity, lower risk disruptions, and enable manufacturers to launch products earlier.
The automobile sector is the greatest single manufacturing activity on the planet. Most automotive firms’ supply chains are mostly related to predictions, which is a standard practise in the automotive supply chain.
From the first chain, raw material suppliers, to the last chain, automobile consumers, vehicle manufacturers must match supplies with needs.
Adani Logistics Limited (ALL) is the country’s most diversified end-to-end freight forwarder, with a presence in all big markets and expertise in handling a diverse range of customers in Retail, Industrial, Container, Bulk, Break-Bulk, Liquids, Auto, and Grain Handling.
ALL has built and manages inland container facilities at Patli and Kila Raipur, as well as multi-modal logistics parks (MMLP) in Kishangarh, Malur, and Kanech.
It operates one BCA-CBM rake (in collaboration with NYK Logistics) for automotive rail transportation. It specialises in the rail transportation of completed automobiles in containers, employing unique technology created specifically for a big vehicle customer.
Within the Indian automotive logistics business, Mahindra Logistics has been one of the main market holders in the Third Part based Automotive Logistics supply.
TML has recently implemented the Warehouse Management System and Transport Management Systems, which optimize logistics processes throughout all warehouses.
WMS and TMS aid in the transformation of traditional warehouses by increasing the efficiency and productivity of warehouse operations. WMS automates warehouses receiving, putting away, picking, kitting, and shipping, as well as inventory cycle count planning and execution. Telematics has been incorporated to provide Control Tower with end-to-end visibility to support the SCM and EM lines of business.
The Control Tower Operations (CTO) system is our primary means of communicating the timely delivery of all movements, products, and people. This aids in keeping a close check on the fleet of cars. TML has also introduced the ALYTE Management System, which focuses on end-to-end visibility for EM operations.
The Alyte’s major aim is to push trips to drivers and eliminate the inconvenience of handwritten trip sheets by digitally capturing these trip facts. It provides centralised operational control and monitoring, as well as an end-to-end people transportation management system with routing and scheduling.
TVS Logistics is a key contributor to the Indian automotive logistics business, with the most recent technical achievement being the product development integration of the TVS SCS Vision System, which is based on the human eye.
We have tried to translate this functioning to a digital process utilising technology, much as the human eye associations and learns over time by taking in data and analysing it frequently.
Vision technology is employed in human capital management, logistics management management, label reading automation, and removing manual validation solutions through the use of cognitive intelligence and sophisticated neural network models.
To establish a highly creative supply chain model, advanced ideas such as facial recognition, label reading, Personal Protective Equipment (PPE) recognition, and drone technology are included.
