With rising competition and narrowing margins, leakages eat up profits in an era where organizations simply can’t afford to lose money due to inefficiencies. Within a plant, the turn-around time for vehicles from entering the gate to completing the various checks, unloading and performing reverse logistics is a massive area of concern. Endless queues not only affect the schedules at the warehouse, they lead to higher logistics costs which can be easily avoided. The saving for an OEMs emerges mainly in four major areas: reduction in material costs, increased capacity utilization, lower logistics costs and lower supply chain risks. By deploying a unified system that alerts and predicts ways to avoid such costs and inefficiencies, ultimately leading to lowered cost and increased revenues.
This article is a prologue to our series on automotive supply chains. In the next article, we’ll cover the exact operational and supply chain problems being faced by the Indian automotive players. Stay tuned.
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