Up to 15% of an auto company’s revenue is leaked in managing India’s inefficient logistics—it needs an expert to manage its complexities.
A robust logistics set up that will smoothen and hasten the movement of components/spares and vehicles between vendors, factories and eventually to customers, is important for the sector that is a major economic driver. In the post GST world, as auto companies recast their supply chain and logistics plans, India’s auto sector needs to quickly find ways to do business more efficiently. If India has plans to be a serious player on the global auto stage—the Government’s Automotive Mission Plan 2016–26 forecasts a four-fold growth—companies in the industry will need to focus sharply on their core business and leave contract logistics to specialists.
India’s largest automaker, Maruti Suzuki, wants to make five million vehicles in India in the next decade. In this time, the firm is preparing to invest as much as INR 200,000 crore in the Indian market to support its vast network of vendors—of all sizes—spread across the country to reach this ambitious target. However, for Maruti and other auto companies, a key cog in the wheel is a robust logistics set up that will smoothen and hasten the movement of components/spares and vehicles between these vendors, the company factories and eventually to customers.
Gearing up for growth
To be sure, this industry’s vitality is key to drive economic growth for India. The sector accounts for 7% of India’s GDP, 45% of manufacturing GDP and employs about 19 million people both directly and indirectly. It contributes around 5% to India’s exports. The Indian auto sector has the potential to generate up to USD 300 billion in annual revenue by 2026, create around 65 million additional jobs and contribute more than 12% to India’s GDP, according to the plan from Society of Indian Automobile Manufacturers (SIAM) and the Union Government.
Even then, the sector, which works with over 800 component makers of all shapes and sizes, geographically dispersed across India, needs to find a smoother and faster way of doing business. Up to 15% of an auto company’s revenue is leaked in managing India’s inefficient logistics—it needs an expert to manage its complexities.
In the post-GST world, auto companies will want to work with a logistics expert who can help them navigate this new world. Avvashya CCI offers its expertise in a range of services that include:
These services are backed by state-of-the-art technology and processes that meet global standards, all resulting in an improved productivity of operations. What it means for businesses is a 20% increase in throughput, 95+% DIFOT (Delivered in full and on time), < 4 hours OTD (Order to Dispatch), fill rate pegged above > 99%, with a 99.99% inventory accuracy rate and 20% increase in cubic capacity.
The logistics edge
To make factories hum, parts reach warehouses and vehicles reach yards and their final owners in the shortest amount of time, Avvashya CCI provides just-in-time inventory management, better productivity, built-to-suit warehousing, after-market solutions and hassle-free auto supply chain management, from experts with deep knowledge of the sector. Being adept at managing any kind of complexity in transit and backed by relationships with core carriers and a network spanning more than 160 countries makes it possible to seamlessly move cargo to and from anywhere in the world for the industry.
Avvashya CCI manages mother warehouses for OEMs, distributors and dealers for finished goods. “Operating from various state-of-the art facilities strategically located across India, we meet the exacting demands of a wide customer base. Our best practices include safety drills, regular reviews and audits, as well as consistent training in programming and all stages of operation with Material Safety Data Sheet (MSDS) norms compliance,” says Mr. Anoop Chauhan, Chief Operating Officer – Supply Chain, Avvashya CCI.
Your business benefits
With expertise perfected over decades, Avvashya CCI ensures smooth and faster clearance, while painstakingly adhering to government regulations. The workforce has expertise in different aspects of customs clearance and provides professional cutting-edge services, backed by advanced technologies, across the length and breadth of the country. Whether cargo moves out or comes into the country (in an increasingly multimodal world), Avvashya CCI stands as the ideal partner.
Just-in-time inventory plays a key role in auto (spare parts) logistics. And it is swift solutions to complex after-market (last mile) requirements that set leading auto (spare parts) manufacturers apart. With efficient solutions, your productivity can get a massive boost. Avvashya CCI offers you its supply chain expertise, with a proven track record of being an efficient logistics services provider. So, rely on Avvashya CCI for your end-to-end contract warehousing needs—and get back to business!
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