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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 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 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.