AUTOMOTIVE LOGISTICS INDIA FOCUS ON POST PRODUCTION OPERATIONS (PPO)
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1 AUTOMOTIVE LOGISTICS INDIA FOCUS ON POST PRODUCTION OPERATIONS (PPO)
2 GEFCO OVERVIEW
3 12,000 GEFCO employees 4.2B turnover 3 OUR OPERATING SCALE A large integrated network with more than 400 facilities in 44 countries
4 #1 IN EUROPE FOR VEHICLE LOGISTICS KEY FACTS & FIGURES 2,800 employees Vehicle logistics leader in Europe 1.3B turnover Compounds in 33 countries 4
5 UNDERSTANDING YOUR BUSINESS STAKES YOUR ACTIVITY YOUR CHALLENGES Plant pick-up Storage, preparation & customisation Delivery & buy-back Respect of delivery lead times CUSTOMER PLANT MAINHAUL COMPOUND DELIVERY CAR DEALER Managing the security and integrity of vehicle RELEASING AGENT WORKSHOP BUY BACK FLEET & RENTAL Increased visibility across the global solution Cost savings 5
6 OUR VEHICLE LOGISTICS SOLUTIONS YOUR ACTIVITY Plant pick-up Storage, preparation & customisation Delivery & buy-back Optimised multimodal transport plans Road Rail Ro-Ro Air CUSTOMER PLANT MAINHAUL COMPOUND DELIVERY CAR DEALER RELEASING AGENT WORKSHOP BUY BACK FLEET & RENTAL Customs & tax Track & trace 6
7 COMPOUND STORAGE & MAINTENANCE STORAGE MAINTENANCE KEY FACTS & FIGURES Secure storage 100% compounds equiped with antiintrusion system 24/7 security agents Storage in dedicated areas according to car manufacturers standards Vehicle preparation during storage according to car manufacturers requirements Battery charging Compounds in 33 countries all around the world Anti-hail device on some site Experienced yard technicians Protection solution 1M car spaces Oil change available 7
8 WORKSHOP PREPARATION & CUSTOMISATION PDI Pre-delivery inspection PPO Post production operations Engine diagnostic & test drives Internal and external valeting Interior & exterior customisation Accessories (navigation, bluetooth, fog lamps ) Vehicle conversions Supply and fitment of plates On site fuelling facilities Signs, stickers, handling equipment (towbars, roof racks ) E-catalog: e-business tool dedicated to dealers 8
9 GEFCO in India Key Facts Present through 2 entities throughout India Started operations in India in 2009 via Mercurio Pallia ENTITIES MAIN BUSINESS 1st class logistics services to the automotive industry in India, by offering 3PL Services (transport and logistics technology, solution design and implementation) A new 100% integrated subsidiary since 2015 via GEFCO India India Air and sea freight forwarding Warehousing & logistics solution Customs 9
10 MERCURIO PALLIA Transporation Caring your vehicles along the way Transported 1 Lac cars and 1 lac Bikes and Scooters last year 400 Owned trucks contracted fleet Average age of the fleet 5 Years Capacity: Flexible to accommodate different types of cars (2 and 4 wheelers, truck carriers) Car Transportation Truck 5% Other 17% TR10 21% TR8 57% 2 Wheeler Transportation Heavy Commercial Vehicle Transportation 10
11 AGENDA What is PPO? Customer Needs OEM Needs Existing and future outbound logistic schemes PPO advantage Added value of logistics providers GEFCO and Mercurio Pallia know-how 11
12 INTRODUCTION Twenty years ago, in a book called What will be, Michael Dertouzos, MIT Computer Sciences Laboratory Director, spoke about future including Car Manufacturing Evolution. About it, he wrote: Final Assembly of cars will be done near the customer location with the help of combination of final production operation possibilities and vendors capacity. Will outbound logistics providers be this combination factor? 12
13 PPO PRODUCT FRAMEWORK PRODUCTION POST PRODUCTION QUALITY CONTROL TRANS- PORTA- TION HUB & SPOKE PDI POST PRODUCTION QUALITY CONTROL DELIVERY Parking Assistance Car Tuning Air conditioned Sun roof Roof Barres Possible PPO LCV customisation Leather seat trim Kit coachwork Alloy wheels GPS 13
14 What is Post Production Operation in our view? What are PPO characteristics: Standardised offer Operation done in Just-in-time flows Standard operational modus under Plant/Brand Process Process integrated in the delivery No additional handling = no additional cost Quality Control IT-updating from order reception Final Overall Quality Control before final delivery 14
15 CUSTOMER NEEDS Get his chosen own car delivered under Car Makers specifications Car Manufacturing Quality Car Maker standard options on price catalog Car Maker Guarantee Car Maker time of delivery Car Maker Standard 15
16 CAR MAKERS NEEDS Extending brand diversity and calibrate Specific offers to fulfil customers demands Depending on the local specificities Without adding diversity on the manufacturing process With an organisation allowing OEM quality With Price, Quality and Lead time Optimisation 16
17 Outbound Logistics Existing Model From plant to dealer Buy off Dispatch Final transportation PLANT SALES & MARKETING TRANSPORT RSO DEALER Damage repairs PDI 17
18 Outbound Logistics Future Model via GST From plant to hub and spoke, then to dealer Buy off Dispatch Final transportation PLANT SALES & MARKETING TRANSPORT HUB & SPOKE DEALER PDI PPO 18
19 Late differentiation means more sales and less cost PLANT Transfer to logistic SALES & MARKETING Transfer to dealer DEALER Plant Storage area or Sales and Marketing Storage Area PPO Request + Final Delivery order PPO + PDI before Final Delivery Late Differentiation 19
20 PPO ADVANTAGE Extending brand diversity and calibrate specific offers to fulfill customers demands Reduced Plant Diversity Possibility to standardise all operations under Plant/ Brand Standard Warranty Work PDI PPO Better cost management and quality control just before final delivery to dealer Late differentiation allows to provide better offers to End Customers 20
21 ADDED VALUE 1/2 Industrialised processing Commitment on Lead Time between Hub/ Dealer Specific Workshops designed for PPO Twinning PDI / PPO Industrial Process Installed capacity and Flexibility PDI / PPO-processing of the vehicle flow, from reception of the ordering up to Lining up for departure Price Optimisation Lead Time Optimisation 21
22 ADDED VALUE 2/2 Contract Management Adaptability to Evolutions for Consumers Areas Processes validated by Car Maker IT-System for ordering reception IT-System for services validation KPIs Changing Safety Rules Environmental Evolution Fiscal Advantages Quality Commitment Increased Sales Volume 22
23 GEFCO know-how Black pack = alloy wheel + scuff plates + shift knob 23
24 GEFCO know-how Leather seat fitting 24
25 GEFCO know-how 25
26 Mercurio Pallia Know How with FCA at Ranjangaon Storage in the stockyard Data management FIAL plant Quality Control Responsibility Transfer Vehicle Reception and quality check Quality Control and information flow Data Management Workshop Management LTSM, Load planning & PDI Dispatch, Tracking & Delivery 26
27 LET S TRY IT It s worth doing it!! 27
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