AUTO SCM Summit 2016 deliberates on transforming future of India's auto supply chain
Dec 08, 2016: The first edition of AUTO SCM Summit by Indian Transport & Logistics News (ITLN) was held from December 6-7, 2016 at Courtyard Marriott Chakan, Pune. The event was support by Frankfurt Airport and IndoSpace. The two-day long event witnessed around 100 delegates including supply chain managers of automotive manufacturers and logistics service providers sharing their views and experiences about the industry. The first session on ‘Transforming the Future of India’s Automotive Supply Chain’ witnessed panelist including Rahul Nangare, IRS, Additional Commissioner of Customs, Jawaharlal Nehru Custom House, Nhava Sheva; Dirk Schusdziara, Senior Vice President, Cargo, Fraport AG; Shailendra Goswami, Chairman and Managing Director, Pushkaraj Group. The session was moderated by Roland Weil, Vice President, Sales, Cargo, Fraport AG.
Talking about the challenges in logistics, Goswami said that taxation and skilled manpower gap is the main challenges faced by Indian automotive sector. Another big challenge is inadequate infrastructure in India. Investment in road, rail and air infrastructure is necessary which will enable ease of movement of goods. Digitisation of documents will be a big changer. Echoing the same sentiments, Schusdziara, said, “Collaboration and digitisation in air cargo sector will be a big development.” Nangare said that customs should not be perceived as road block. He added, “We have facilitated Direct Port Delivery (DPD) facility at our port. We encourage direction interactions with customers.”
The session on ‘Automotive Export Scenario and Challenges Ahead’ was moderated by Reji John, Editor, Indian Transport & Logistics News. Among the panelist were Rahul Nangare, IRS, Additional Commissioner of Customs, Jawaharlal Nehru Custom House, Nhava Sheva; Amit Borkar, General Manager, SCM, ARaymond Fasteners; V Athmaraman, Head of Development and Strategy, Delex Cargo.
The panelist dwelled on the impact of Goods & Services Tax (GST) on automotive industry. In addition, the panel discussed the impact of government initiative of Single Window Interface for Facilitating Trade (SWIFT) on India’s automotive sector. Borkar said, “We are investing in the infrastructure for manufacturing and supply chain. Right infrastructure and right process will help to work as a transparent ecosystem and make differences. In addition, digitisation will bring transparency and effective communication in the system. I see Industry 4.0 really to be a reality. It is not just about smart manufacturing, it is also digital supply chain.” Athmaraman said, “Infrastructure in India cannot be compare with other countries including Japan. We will take time but we are evolving despite of constraints.”
Panelist for the session ‘Enhancing Auto Components Supply Chain’ were Santosh Bhanu, Manager, Supply Chain, Ford India; Nikhil Khairnar, Sr. Manager, Logistics and Sourcing, Supply Chain Management Division, Tata Autocomp Systems; Pramod Kumar, Head of EDC Maharashtra & Goa, Gati KWE and moderated by Muralidhar Wadappi, Head of Supply Chain Management, Benteler Automotive India.
The session discussed on how competitive and prepared are Indian auto component manufacturers and their logistics partners to create a more visible, agile global supply chain. Bhanu mentioned that two important factor for development of supply chain is technical team and timely delivery. Avoiding ambiguity will ensure smooth flow in the supply chain. Kumar agreed, “Enhancing the supply chain is important. Vendor Managed Inventory is a traditional concept and Vendor Owned Inventory (VOI) will be the next age concept. Maintaining service level at the same time in a cost-effective manner is the key.”
The last session ‘Finished Vehicle Logistics’ on the first day focused on how the speed to market and safe delivery to end customer bring with it a lot of complexities where logistics has a critical role to play. The inadequacy of infrastructure has by far been the biggest challenge in the transportation of finished vehicles. Also, the adoption of technology in most supply chains in India is still very much in its infancy. With rising demand for vehicles and bulk of the road network being poorly paved, there is a pressing demand to improve infrastructure to support intermodal services.
The session was moderated by Rakesh Pathak, Professor of Supply Chain & Logistics Management, International Institute of Management Studies, Pune and among the panelist were Nidhish Kuchhal, General Manager, Logistics, Mahindra & Mahindra and Jiten Munot, Head Sales Admin & Logistics, Force Motors. Kuchhal informed, “Multimodal logistics will play very effective role post GST. Collaboration between the partners in the supply chain is the way to go. Adoption of technology is important.” Munot said, “Efficiency and effectiveness of the system will increase with advent of technology. Post GST will be a success story for logistics.”
The first session on the second day was on ‘After Market Supply Chain: Challenges and Opportunities’ was moderated by Pankaj Chandak, Head, After Sales & Parts, FCA India Automobiles. Among the panelist were Rakesh Pathak, Professor of Supply Chain & Logistics Management, International Institute of Management Studies, Pune and Mandar Palsule, Head of solutions, Spear Logistics.
The session discussed the thin line between “DIFM” (do it for me) and DIY (do it yourself) segment. DIFM constitutes a majority of aftermarket size due to the increasing capacity of repair requirements and the after-sales service mechanism offers a huge growth potential for logistics. Collaboration is becoming an increasingly common trend, as aftermarket players realize the efficiencies of combining forces with other businesses – at times, even direct competitors - for greater efficiency. The panelist focused on how academics help in collaboration and making of future leaders. Pathak stressed that the best option is collaboration rather than competition. Collaborate to compete. Chandak informed, “Supply chain depends on two important factors delivery and service levels. Managing both at the same time is a herculean task.”
Pankaj Narang, General Manager, Central Purchase, Supply Chain Management Division, Tata Autocomp Systems made a presentation on iEdge Learning by Tata Autocomp Systems.
The final session of the summit ‘Transforming the Future of Supply Chains Through Disruptive Innovation’ was moderated by Reji John, Editor, Indian Transport & Logistics News and among the panelist were Suhail Kazi, IRS, Deputy Commission Customs, Pune; Pankaj Narang, General Manager, Central Purchase, Supply Chain Management Division, Tata Autocomp Systems and Dirk Schusdziara, Senior Vice President, Cargo, Fraport AG. The session discussed on the new concepts like Internet of Things, advanced robotics and driverless electric automobile and impact of 3D printing on the auto supply value chain. Is it about time for the automotive supply chain to consider new technology investments that can not only drive efficiencies but also reduce costs.
