The last decade has seen three major revolutions in the automobile logistics industry: globalisation of supply chains, localization of production in India, and the growing importance of the (auto) industry to India’s GDP and thus its contribution to logistics industry growth. The next big change is towards outsourcing; the auto industry has always been at the forefront of modernisation and logistics outsourcing to 3PLs is another major trend or change we have profoundly seen in India. The last one has to do with what OEMs expect from service providers, namely value-based solutions through the use of TMS and WMS technology.
The biggest challenge today is the scarcity of components, mainly semi-conductors, and OEMs are looking at making largely global supply chains local to whatever extent possible in the short term. The longer-term challenges will focus on the ‘right sizing’ of supply chains depending on the OEM and the level of indigenization of components.
Innovations and Technology
Auto logistics has always been at the very forefront of innovation in logistics. Technologies like WMS systems and TMS systems have been in use for a long time. Technology enables inbound manufacturing to run more efficiently and lines JiT and JIS systems too. Finally, yard management systems enable the efficient storage and retrieval of finished goods. The way forward is going to be more about how these solutions and tech systems get integrated into a seamless and end-to-end flow of physical goods, information, and inventory costs.
Express Logistics service providers like Gati make sure that an OEM can fulfil its responsibility to dealers, distributors, and customers for all spare parts when it comes to the shipment of auto ancillaries. “We are able to manage the central or plant warehouse (or import consol warehouse), the regional distribution centres, and finally, design and run the distribution system all the way to the last dealer or even store in order to transport auto ancillaries safely and effectively throughout the supply chain,” says Nasarwanji. Gati is the top option in logistics for spare parts thanks to our unmatched reach and dependability, automated and technologically enabled warehouses, and inventory management systems.
Gati is the top option in logistics for spare parts thanks to our unmatched reach and dependability, automated and technologically enabled warehouses, and inventory management systems