Page 22 - ITLN Nov-Dec 2022 For Magzter

Spotlight
Automotive
Logistics

and enables seamless, process-
driven purchasing. Connected and
autonomous supply chains like robots,
in warehouses, delivery drones and
automated vehicles are either here or
will be here."

Just-in-Time - new Avataar
The Just-In-Time concept, when
initially started, was a huge success to
build lean inventories and save massive
wastes and costs for automakers, says
Abidi "but the recent disruptions of
lockdowns, geopolitical tensions, and
war did tempt organisations to move
away from this efficient production
system to Just-In-Case that maintains
inventory at various locations to
manage the business continuity. The
Just-In-Time had a revamp where
parts forecasted as critical could have
smaller segments of JIT connected to
the help of these tools, customers get the just-In-Case part thus providing
complete visibility and are able to address a balance of continuity and savings.
gaps across both demand and supply. We have witnessed organisations
Moreover, our Control Tower solutions revamping JIT and JIC models for a
provide customization that allows users to smooth supply chain."
manage their entire business." After the Covid crisis, organisations
While automotive companies have went back to the drawing board to
made advances when it comes to redraw their supply chains, says Birani.
improving digitisation and overall "As a result, companies have amended
visibility of the supply chain, the their Just-In-Time processes. Many
Covid-19 pandemic and other issues organisations are now using multi-
challenged the existing setups quite client facilities for their inventory
a bit over the last two years, Maersk management and JIT deliverables. It
spokesperson added. "Now, automakers gives them a degree of flexibility and
have realised more than ever the value KSH helps scalability that is hard to find elsewhere,
of a strong partnership with global organisations reduce plus it helps adjust JITs and buffers can
supply chain players vis-à-vis local supply chain costs with be created with plug-and-play models."
transactional setups, and depend on networked multi-client It is safe to say now the challenges
the global scale and proven capabilities we faced during Covid are behind us,
(both operational as well as digital) of warehousing for last- adds Malbarwala of Galaxy Freight.
large global logistics service providers. mile delivery. “During Covid, the Just-In-Time model
Maersk’s global partners, for instance, Athul B Birani was forced to use air freight mode and
were able to benefit from long-term KSH Logistics pay much higher costs. The suppliers, in
contracts (providing price protection and turn, now seem to have higher stock at
higher reliability), end-to-end one-stop warehouses to fulfil the demand."
shop capabilities that touch every part staggered movements but the lessons
of a supply chain as well as a suite of learnt have been beneficial. A more Is tech boost helping auto SCM?
digital offerings that improved visibility connected, digital supply chain has The tremendous rise of technology
and made our customers’ supply chain been adopted by industry leaders. The has drastically improved supply time,
more predictable." global supply chain providers have says Birani of KSH. "With improving
Abidi of cargo-partner says the enabled automation for all processes technology and gadgets, data is now at
automotive industry has an elongated starting from planning, procurement, your fingertips, allowing organisations to
supply chain (20,000 parts in a typical manufacturing and logistics. We at make more informed decisions quickly.
vehicle). "Hence the visibility is cargo-partner have enabled end-to- The availability of IoT (Internet of Things)
challenging for automakers and we end visibility and transparency through data allows the operations team to
witnessed the disrupted supply chain SPOT, a tool which brings all involved evaluate insights, understand customer
due to the lack of transparency and parties together on one platform behaviour and make the right decisions
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