Transcript OPL - League

Key Challenges in Car Carrier & Two Wheeler
Transportation
Contents
About Mahindra Logistics
Industry Outlook – Automotive / 2 Wheeler
Challenges
• Transport Industry
• Automotive / 2 Wheeler Industry
• Regulatory
Way Forward – MLL Perspective
Partnering with MLL
Mahindra Logistics today
• One of India’s leading logistics service providers with
a diverse portfolio.
• Wholly owned subsidiary of the Mahindra Group.
• More than 1,300 crores ( over USD 250 million)
revenue
• More than 26 offices, in over 15 cities
• More than 20,000 vehicles
• More than 2,000 employees
• More than 3.5 million square feet of warehouses
• More than 200 corporate customers
• ONE Solution…….
…….. Our imperative with
all customers
PARTNERSHIP
• Our logistics service offerings are highly
diversified and always customized
• We believe contract logistics to be a
collaborative and constantly evolving
partnership between us and our customers
• We also believe in evolving our approach to
meet the changing needs of various businesses
• We seek partnerships with those customers to
whose operations we can continuously and
consistently add value
Our capabilities span various logistics
activities
Supply Chain
Consultancy
Supply Chain Design
Planning
Optimization
SOLUTIONS
DESIGN
Warehousing &
Linefeed
Process & Design
Operation
Automation
Transportation
Primary
Secondary
International
People Logistics
Solutions for our
Partners
Supported
by
INFORMATION
TECHNOLOGY
Our solutions span industries &
verticals
• Auto
• FMCG
Supply Chain Design
Supply Chain Optimization
• Telecom
Primary Transportation
• Cement
Secondary Transportation
• Retail
• Engineering
• Textiles &
Garments
Warehousing
Distribution
Final Processing
Reverse Logistics
International
We manage end-to-end solutions and continue to
innovate improvements to our partners value chain
Global & Domestic
Suppliers
Finished Goods
Inventory
Transportation – Road, Rail, Air & Sea. Both Domestic & International
In-plant stores & Production Linefeed
Break Bulk & Consolidation Centers
Reverse Logistics – Repairs & Returns
Packing &
labeling
Transportation
Distribution
Centers
Last Mile
Logistics
INDUSTRY OUTLOOK
In Million no.
Auto Industry Outlook: Automotive growth in last 4 years in the
domestic market
3
2.52
1.95
2
1.55
1.55
1
0.36
0.49
0.35 0.38
0.44
0.53
0.53
0.68
0
2007-08
Three Wheelers
2008-09
2009-10
Commercial Vehicles
2010-11
Passenger Vehicles
Source: Society of Indian Automobile Manufacturers
Two Wheeler Industry Growth
In Million no.
Automobile Two Wheeler Domestic Sales in last 4 years
15
11.79
9.37
10
7.25
7.44
2007-08
2008-09
5
0
2009-10
2010-11
Source: Society of Indian Automobile Manufacturers
CHALLENGES
Challenges
Regulatory
Market (OEM)
Industry
Regulatory Challenges
Application of CMVR Rule
Increasing RTO issues
Changing Rules impacting Overloading, Fines & Penalties, Legal liability
GST Implementation
Increasing Toll Expenses
Market (OEM) Challenges
Imbalanced growth across OEM’s
Sectoral or Geographical shift in Automotive cluster (west becoming a strong
Automobile originating market)
Skewed distribution pattern during the month across OEM’s
Reduced volume per delivery point
Shrinking volume resulting pressure on Logistics cost
Industry Challenges
Increasing competition - Transporters from different industries entering
automobile transportation segment
Increasing Carrier Waiting, impacting TAT - reduced productivity
Reducing driver population, impacting heavy asset idealing
Increasing cases of Theft / Pilferage / Cash Mismanagement
Increased road expenses, unaccounted road expenses, fines
Putting pressure on Margin
Success MANTRA –
C.A.I.
Collaboration
Innovation
Alignment
Partnering with MLL
• Partner with one of India’s leading logistics service providers
– Large operator with transportation across segments
• 2W / 3W / 4W / HCV / Farm Products / Construction Equipments
• Inbound / Outbound / IUTN / Spare Parts
• Volume in access of 700,000 units per annum
• Opportunity to grow along with us and be part of our success story
• Industry Vertical focused with interest spread across various industry
segments
– Automobile
– FMCG & Retail
– Cement / Agri / Power
• Best practices, technology and process
• Be part of the RISE movement !