Automotive Logistics Seminar Inbound Logistics Purchase-Logistics November 2017
Contents 01 02 Renault Nissan Overview Renault Nissan Logistics Scope Parts Logistics Vehicle Logistics 03 Parts Logistics Drayage Operations Milk Run /Long Haul 04 Way Ahead Internal 2
# Renault Nissan ALLIANCE COMPANIES IN INDIA : - RENAULT NISSAN HAS,5 COMPANIES IN INDIA NMIPL /NALT /RIPL RNAIPL CHENNAI RNTBCI Mahindra World City Detail RNTBCI RNAIPL NMIPL RIPL NRFSI Entities RNPO Part of RNTBCI Renault Nissan Technology & Business Center India Private Ltd Renault Nissan Automotive India Pvt. Ltd Nissan Motors India Pvt Ltd Renault India Pvt Ltd Nissan Renault Financial Service India Pvt Ltd Location Mahindra World City, Chennai Oragadam, Chennai Chennai /Delhi Chennai / Delhi T. Nagar, Chennai. Internal 3
## Renault Nissan PAN India Overview: RN Pan India Presence: RN Alliance Manufacturing Plant - Chennai *ILN International Logistics Network *AS - After Sales Internal 4
# Renault Nissan Logistics Scope: Parts Logistics Vehicle Logistics Drayage CBU Ocean Inbound Truck(MR) Outbound Truck Container Sea PDI /ACCY Warehouse 3PL Yard Management Today Discussion Focus on parts Logistics Internal 5
Contents 01 02 Renault Nissan Overview Renault Nissan Logistics Scope Parts Logistics Vehicle Logistics 03 Parts Logistics Drayage Operations Milk Run /Long Haul 04 Way Ahead Internal 6
## Re use of Containers (Imports/Exports Operations) : Drayage Area of Application: Drayage movement from Port to Plant or Plant to Port for Exports CFS Best Practice: Re Use of Containers for Export from Imports inflow Avoiding movement of Container to Empty yard Optimized Utilization based on availability CFS Re Use of Containers Merits - KM reduction - Co2 Reduction - Cost Saving Eliminated CFS Internal 7
To Utilize Other OEM/Supplier Import/Export Containers: Drayage Chennai Sub Urban : Key Message: Three Industrial Parks near at distance of 16 KM Port MM Nagar,Orgadam,Sriperumbadur Park1 Park2 16 KM 75 KM Park3 Utilization based on availability Huge Opportunity of Re use Merits: Effective Utilization Cost Avoidance CO2 reduction Required Strong Support /Collaboration to achieve this Internal 8
Contents 01 02 Renault Nissan Overview Renault Nissan Logistics Scope Parts Logistics Vehicle Logistics 03 Parts Logistics Drayage Operations Milk Run /Long Haul 04 Way Ahead Internal 9
## Milk Run Operations: Milk Run Operation: Key Merits on MR operations: On Time Delivery Standardization Improved TFR (Truck Fill Ratio) Better Lead Time Planning Controlled Truck Inflow (plant) Process Flow Internal 10
Inbound Logistics optimization factors: Truck Utilization Production parts with AS Parts Route Optimization (Central) Alternate /Multi Modal Consolidate WH Returnable Packaging Reverse Logistics Elimination Internal 11
## Route Optimization: Routing for chennai Delhi-chennai Concerns in Alternate Central Route: Poor Road Conditions Expensive RTO Charges Concerns on Safety Merits Expected from Central Route: Distance Reduction 8 ~ 9% Toll Benefit/Fuel Benefit Quick TAT Benefit to OEM/Suppliers Common Approach to Authorities To address the Above concerns Internal 12
Inbound Logistics optimization factors: Truck Utilization Production parts with AS Parts Route Optimization (Central) Alternate /Multi Modal Consolidate WH Returnable Packaging Reverse Logistics Elimination Internal 13
## Milk run By Rail Mode: Production Parts by Container Flow : Why Train: Dense Material Requirement is more hence Bigger Truck reqd. Unbalanced Utilization of Trucks due to Dense Cargo Better Transit time & Cost Merit Concern Area: Schedule Adherence Transit Time Adherence Increased Frequency of service Higher Tonnage Trucks / Improved Rail Service Required Internal 14
## AS - Warehouse Consolidation : Feasible? CSI Is Key for all OEM (By Near to Customer,availability,Daily delivery) Many OEM operate regional warehouse Regional Consolidation is idea to explore! Ahmedabad /Sanand Maruthi Tata/Ford PUNE / Mumbai Mercedes Benz Skoda Tata Motors Volkswagen Fiat GM Mahindra BANGALORE Toyota Kirloskar DELHI Maruti Suzuki Honda CHENNAI BMW Daimler Ford Hyundai Renault Nissan Merits: Optimum Resource Utilization Better Truck utilization Large Truck Enhancement Reduction in cost Costal Mode operations (parts) future to be explored for Bulk parts movement Internal 15
Inbound Logistics optimization factors: Truck Utilization Production parts with AS Parts Route Optimization (Central) Alternate /Multi Modal Consolidate WH Returnable Packaging Reverse Logistics Elimination Internal 16
## Packaging Optimization : Packing Best Practice Reverse Logistics is Cost --- > Opportunity? All OEM Uses Bins/ Dunnage's for Production parts Common Utilization of Bins with Returnable Packing (Like Car Carrier common for all OEM) Opportunity for Reverse Logistics Elimination Cost Avoidance in Packing Investment Elimination of Carton Boxes After Market -Avoid Price Increase/ Reduce Import Dependency Aavin reverse Milk Run Empty Bins operations is classic example Internal 17
Contents 01 02 Renault Nissan Overview Renault Nissan Logistics Scope Parts Logistics Vehicle Logistics 03 Parts Logistics Drayage Operations Milk Run /Long Haul 04 Way Ahead Internal 18
## Way Forward: ## Future Logistics Technology Enablers VOR Shipments Collaborate for Excellence: Opportunity to Collaborate with all for - Container Usage - Returnable /Common Packaging - Up Coming Technology change - Up coming Challenges Lets Make India Great with Excellence by Collaborative Logistics Internal 19
Thank All For Kind Attention Every Ending is Really just a New Beginning Internal 20