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Fast Tracking the Indian automotive logistics


Globally, organizations are increasingly realizing that there are a number of factors that differentiate, long term sustainable partnerships, from the one-off transactional outsourcing benefits. Some of these include; full menu of specific logistics services and solutions, seamless integration of systems applications, robust ability to support initiatives that help avoid major investments in capital and other resources, reduction in total landed cost and not just operating cost, total quality assurance programs, wide geographic coverage and risk & security management capabilities. The automotive logistics industry has evolved much faster in India compared to logistics in other sectors. Almost all the players in the automotive industry use 2PL for a part of their logistics operations. A trend towards creating a perfect blend of in-house and outsourced service components to effectively manage supply chains is leading to the emergence of 4PL services.

However, there are significant challenges driven by supply chain complexities resulting in inefficiencies which in turn lead to cost increases. The challenges of managing complexity and costs for the automotive logistics industry are likely to increase given the positive movement of the drivers.

In this white paper that was released at the Auto SCM 2008, where Deloitte were Knowledge Partners to CII – IL, we have tracked the current state of the logistics industry and identified the strategic, evolutionary and performance gaps for the outbound logistics providers. We have articulated the issues that would require focus, debate and action.