Innovation in Outbound Logistics. Gurgaon, 10 Nov 2016
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- Brenda Carr
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1 Gurgaon, 10 Nov 2016
2 Major Regulatory Changes in 2017 Regulatory change in car trailer length from April 2017 opens doors to multi modal transport GST implementation in 2017 will have a potential to reshape the outbound supply chain 2
3 Increase in road freights opens multimodal transport options RAIL as a mode has been struggling since inception to compete with road freights. With the increase in road freight, rail will become a competitive and viable option for OEM s, and is likely to gain 10 to 15% share in the next few years. However the rail mode will still struggle to get a sizeable share of the distribution due to operational constraints. 3
4 Coastal Shipping Benefits to the customers.. 1 Ro-Ro is the safest and least expensive way to handle automobiles, commercial vehicles and high and heavy equipment Cars are stowed and secured safely in an enclosed compartment 3 Regular frequency & on time delivery 2 A stable and reliable liner service creates value through reduced inventory and storage costs Safe & Secure carriage Reduced costs 4
5 Can Coastal Shipping become a long term sustainable solution? Regular liner service with fixed departure and arrivals OEM s need to provide long term volume commitments. 2 way load is vital to the success More support is required from the Government to rationalize freight and taxation, resulting in cost competitiveness with road Ports need to provide better infrastructure, priority berthing etc., to ensure schedule integrity and safe operations. 5
6 India has one of the highest logistics costs globally India s logistics costs are estimated at about 12 to 14% of the GDP, or as much as 15% of the value of the goods sold Wastage in the outbound leg New steps taken to reverse the high logistics costs in India Deregulation of Diesel Dedicated freight corridors Make in India Goods and Services Tax 6
7 New tax regulations will enable a more efficient and predictable supply chain from factory to dealer Reduced lead time (Order to Delivery) Predictable lead time (Order to Delivery) Customers need choice of Model, variant and colour in the ready stock Cars must arrive damage free ready to handover to the customer Better visibility for dealers Dealer wants to know the status of the shipment after it leaves the plant Spare parts availability and Service downtime are important to Customers 7
8 Distance Innovation in Outbound Logistics WWL carries out detailed network study and provides useful insights to OEM s on the ideal hub locations Distance Comparison Direct: 128,754,542km Via VPC: 133,856,331km *(km measure in unit) 128,754, ,856,331 +5,101,789 (+3.96%) Direc t Volume VP C 8
9 Seasonal variations are considered to provide higher accuracy Overall result by monthly of Cars & Commercial (C&C) vehicle Cars & Commercial seem to had the highest sale around End of Q3 until first month of Q1 then decline during the middle of the year. The average by zone of C&C k Q2 Q3 Q4 Q1 319k 313k 312k Commercial 308k 308k Cars 302k 303k 299k Q-Average 292k 287k 288k 281k 277k 279k 272k Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 9
10 Oragadam - Ludhiana Oragadam - Delhi Oragadam - Jammu Innovation in Outbound Logistics Large reduction in delivery time to dealers will result in increased sales (-87%) (-97%) (-79%) 10.4 Jammu Ludhiana Delhi 1.2 Factory to Dealer (days) Depot (Patli) to Dealer (days) Oragadam By introducing a depot south of Delhi the lead time will be drastically reduced for all destinations 10
11 Integrated factory to dealer multi modal network Call of the Future Proximity to the customer Multi User Depots Coastal and Short sea Shipping Reduce Lead-time Reduce Damage Ratio Added transportation capacity 11
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