Premium Essay

Reverse Logistics in Indian Automobile Industry

In: Business and Management

Submitted By SmrutiPrakash
Words 1394
Pages 6
Reverse Logistics in Indian Automobile Industry
Reverse Logistics is a process in which a product moves in reverse through the supply chain network. It may be used for the purpose of recapturing value of a final product or for even proper disposal. It may also be termed – service, as the process of planning, implementing and controlling the efficient and cost effective transfer of raw materials, in-process inventory, finished products and related information, from consumption to the point of origin, for the purpose of recapturing value of proper disposal.

While the primary sectors involved in making use of this process may be classified as the Pharmaceutical Sector, Retail sector, Automobile sector and the Electronics sector, we are mainly about to focus all our attention to the practices of ‘Reverse Logistics’ in the Indian Automobile Industry.

To truly know why the whole idea of ‘Reverse Logistics’ assumes significance when considered in terms of the Automobile Industry, first we need to think of the nature of the final product i.e. Automobiles or Vehicles as we call them. The parameter one needs to look at is the life cycle of the product and what happens to the final product once it reaches the end of its useful life. By its very nature, it’s difficult to predict the life cycle of the final product. This is because; it is highly susceptible to the nuances of the human subjectivities. But even if we are unable to predict the duration of the life cycle, we have definitely something figured out for us. What I am referring to is a common observation that even if the vehicle (Here we will be primarily focusing on the flagship product, an automobile) becomes defunct and is no more suitable for use, the same rule doesn’t apply to the metal (that is primarily Iron) that it has been made from. The Iron that has been used in the manufacturing of a vehicle stays in...

Similar Documents

Premium Essay

Growing Importance of Reverse Logistics

...COLUMN Growing importance of reverse logistics Prof Samir K Srivastava Reverse logistics is the process of moving a product from the consumer to the manufacturer, or any other stage in the supply chain, for re-use or proper disposal. It has grown in importance due to many reasons. One of the most prominent reasons is the growing concern for the environment. Consumer demand for clean manufacturing and recycling is increasing, many times leading to legislation as well. Consumers expect to trade in an old product when they buy a new one. Cost is another reason. Research shows that reverse logistics may be a worthwhile proposition even in the contexts where regulatory and consumer pressures are insignificant. It is becoming vital as service management activities and take-back for products such as automobiles, refrigerators and other white goods, cellular handsets, apparels, lead-acid batteries, furniture, televisions, computer peripherals, personal computers, laptops, etc. are on the increase. Advancements in Information and Communication Technologies (ICT) and their utility in supporting related data collection, transmission and processing have given it further fillip. Aftermarkets, product recalls and collection of post-consumer goods by various supply chain stakeholders is gaining interest worldwide. Establishing a well-managed reverse logistics system can be a value-adding proposition for organisations and supply chains. It can not......

Words: 798 - Pages: 4

Premium Essay

Business Management

...Supply Chain management In Automotive Industry Auto SCM India 2006, Chennai 1 Supply Chain Management Automobile Industry in the major reasons for surge in demand for automobiles in India. Domestic sales have grown at CAGR of 14.27% from 2001-02 to 2005-06. The commercial vehicle segment, in particular, has increased at CAGR of 24.35% during the above-mentioned period; whereas total sales of passenger cars in domestic market have increased at CAGR of 14.02%. In terms of production, commercial vehicles have registered a CAGR of 24.55% from 2001-02 to 2005-06; while passenger vehicles have registered a CAGR of 18.24%. There is a declining trend in mopeds production as well as in sales in the domestic market. During 2001-02, mopeds production and sales have declined at CAGR 2.93% and 5% respectively. Exports on a roll The significant development in Indian automobile sector is the outstanding growth of its exports. From 2001-02 to 2005-06, total exports of automobile sector has gone up at CAGR of 44.56%. Exports of motorcycle segment have registered highest annual growth rate of 61.42% during this period. This has clearly indicated that Indian automobile sector is going global. Chart- 2: Export Trend in Indian Automobiles (‘000 units) 900 800 700 806.49 600 Overview of Indian automobile and auto components industry Indian automobile industry is riding high with overwhelming economic growth rate of 8.4% in 2005-06. The industry has been growing at CAGR of......

Words: 4070 - Pages: 17

Premium Essay

Logistics

...Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involve the integration of information, transportation, inventory, warehousing, material-handling, and packaging. Logistics is a channel of the supply chain which adds the value of time and place utility. Origins and definition The term "logistics" originates from the ancient Greek " " ("logos"—"ratio, λόγος word, calculation, reason, speech, oration"). Logistics is considered to have originated in the military's need to supply themselves with arms, ammunition and rations as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and supply distribution matters. The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems".... Military logistics In military logistics, logistics officers manage how and when to move resources to the places they are......

Words: 3529 - Pages: 15

Premium Essay

Role of 4pl in India Logistics

...Introduction: Automative industry in India, the sixth largest in the world, has produced more than 3.5 million vehicles in 2010 alone. The Indian automotive industry in mainly includes the industries associated with the manufacturing of two wheelers, three wheelers and four wheelers-such as cars and trucks. The major Indian players include Maruti, Mahindra and Mahindra, Tata Motors, Ashok Leyland, Bajaj Auto and TVS Motors. In 1990s and after, Indian automotive industry saw many foreign players establishing their manufacturing and assembly plants in India, catering to the Indian market. Major foreign players include Toyota, Hyundai, General Motors and Volkswagen Group. Major automotive hubs in India are Chennai, NCR and Pune. As the operations of automotive industry are increasing rapidly in terms of volume and complexity, companies in India need to follow global standards and best practices for achieving optimization of their supply chain. One of the practices, which are followed by leading companies, is fourth party logistics (4PL) company, or a lead logistics provider (LLP) Need for 4PL 1) Concept Definition: Lead Logistics provider or 4PL 4PL is term introduced by Accenture in 1996.It describes 4PL as an "integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design supply chain solutions". 4PL i.e fourth party logistics provider is a company which re-designs a manufacturer’s or retailer’s supply......

Words: 1262 - Pages: 6

Premium Essay

Recent Trends in Ecommerce Logistic and Their Adaptation in Steel Logistics Process

...PGP2015-17 Project Report on Recent trends in Ecommerce logistic and their adaptation in Steel Logistics process To Mr. Gopal Kapoor & Mr. Alok Singh Student Name: - Suraj Tripathy Roll number: - PGP/19/350 Introduction The fast development of information and mobile technology in the past few years is changing many aspects of our lives i.e. how we look for the information we seek, how we plan our travel and most of all how we buy products or services. Even though classic store based retail is still preferred, e-commerce, which involves buying and selling of products and services mainly through electronic channels, like computer, tablets, mobiles etc. is gaining ground. The most common form of e-commerce is online shopping. Ecommerce can be of mainly three categories. Most common is business to consumer e-commerce (B2C), where individual customers order various products online, which they then receive through courier, parcel or by post. Second category of e-commerce focuses mainly on transactions between companies or businesses, such as manufacturers and a wholesaler, similarly from wholesalers and retailers and vice versa is called business to business e-commerce (B2B). The next category of e-commerce refers to the transactions......

Words: 3595 - Pages: 15

Premium Essay

Logistics Industry

...INDIAN LOGISTICS INDUSTRY May 2012 Index I. II. Executive Summary Market Overview – – – – – – – – Industry Overview Structure of the Industry Five Forces Model Growth Drivers Trends in the Industry Government Initiative Opportunities in the sector Challenges in the sector III. Industry Analysis III. Major Players – Major Companies – Common Stock Comparables IV. Organized Players in Logistics Segment – – – – – Container Rail Business Multimodal Transport Operation Container Freight Station Third Party Logistics Express Logistics 1 Index V. Investment in the Sector – Private Equity Deals – Recent Joint Venture – Recent Private Equity Funding VI. Profile of Listed Companies – – – – – – – – – – Container Corporation of India Limited Allcargo Logistics Limited Gateway Distriparks Limited Aegis Logistics Limited Transport Corporation of India Limited Arshiya International Limited GATI Limited Blue Dart Express Limited Shreyas Shipping and Logistics Limited Sical Logistics Limited VII. Corporate Profile (Dinodia Capital Advisors) 2 Executive Summary The logistics sector in India is evolving rapidly and its growth is dominated by the interplay of infrastructure, technology and new types of service providers that will determine whether the industry is able to help its customers to reduce logistics costs and provide effective services or not Changing government policies on taxation and regulation of service providers is going to play an......

Words: 6615 - Pages: 27

Premium Essay

Preview Request

...NAME: RANJIT KAUR SAHOTA. ROLL NO. : 34. CLASS: TYBMS. SUBJECT: LOGISTICS MANAGEMENT. TOPIC: COMPANY- 3PL MAHINDRA LOGISTICS LTD. PROFESSOR IN CHARGE: POONAM MIRWANI. SUBMISSION DATE: 17TH OCTOBER 2013. INDEX Sr No. | Particulars | Page No. | 1 | Introduction | 3-4 | 2 | Definition of 3PL | 4-5 | 3 | History of the Company | 6-10 | 4 | Awards Received | 11 | 5 | SCM At Mahindra Logistics | 11-14 | 6 | Mahindra Logistics on the Road to Success | 14-16 | 7 | About Mahindra Group | 17-22 | 8 | Quick Facts | 23 | 9 | Top 5 Critical Success Factors | 23 | 10 | 3PL Data Structure | 24 | 11 | About CEO And Interview of Pirojshaw Sarkari | 25-35 | 12 | Benefits of 3PL Companies | 36 | 13 | 5 Reasons to use a 3PL Provider | 36 | 14 | Types of 3PL providers | 37 | 15 | Examples of Types of 3PL’s | 38 | 16 | Biblography | 39 | INTRODUCTION: For people new to the supply chain management and logistics industry, the term “3PL” is likely an unfamiliar term. This is certainly not surprising as every industry always has their own set of acronyms and buzz words, but I’d like to provide some clarity to the commonly asked question, What is a 3pl? 3PL Warehouse Facility, photo by Joe Goldberg A couple years ago I put together a list to provide a3PL definition but truly understanding what a 3PL company is and the services they provide really deserves a more in depth explanation. While it isn’t immediately clear exactly who coined the......

Words: 8773 - Pages: 36

Premium Essay

Auto Industry Analysis

...3.5 STRUCTURE OF INDIAN AUTO COMPONENT INDUSTRY Most of the auto component manufacturers are distributed in the north, south, and, western parts of India around major Automotive Vehicle Manufacturers (AVMs). The AVMs contribute largely towards the development of component suppliers through technical and or financial collaborations. These are however, concentrated in some pockets such as Chennai and Bangalore in the south, Pune in the west, the National Capital Region (NCR, which includes New Delhi and its suburban districts) in the north, Jamshedpur and Kolkata in the east and Pithampur in the central region. Following global trends, the Indian automotive sector also has most auto suppliers located close to the manufacturing locations of OEMs, forming regional automotive clusters. Broadly, the three main clusters are centred around Chennai, Pune and the NCR. The Indian automotive component industry is highly fragmented. There are nearly 6,400 players in the sector, of which only about 6 per cent are organised and the remaining 94 per cent are small-scale, unorganized players. In terms of value added, however, the organised players account for nearly 77 percent of the output in the sector. The auto ancillary industry caters to three broad categories of the market: 1) Original equipment manufacturers (OEM) or vehicle manufacturers, that comprises of 25% total demand 2) Replacement market, that comprises 65% of the total demand 3) Export Market, that comprises......

Words: 4314 - Pages: 18

Premium Essay

Globalizing Indian Manufacturing

...Globalizing Indian Manufacturing Competing in Global Manufacturing and Service Networks A Report on the Summit on Indian Manufacturing Competitiveness by Deloitte Research, the Indian School of Business, New York University, and Purdue University with support from the National Science Foundation Table of Contents Executive Summary: Globalizing Indian Manufacturing .......... 1 Competing in Global Manufacturing and Service Networks ..... 5 The path to becoming competitive ............................................... 5 Cracking the code for success in emerging markets...................... 5 Overcoming the size barrier.......................................................... 6 Growth strategies for Indian manufacturing ................................ 7 Indian Manufacturing and Global Competitiveness .................. 8 Scale and innovation ................................................................... 8 Reverse currents: Going overseas for growth ............................... 9 Going global with pharmaceuticals .............................................. 9 The opportunity in the food chain ............................................. 10 Becoming suppliers of choice ..................................................... 10 Simplifying India for global retailers ........................................... 11 Multinational Companies Entering Indian Markets ................. 12 From India to the world............................................

Words: 22416 - Pages: 90

Premium Essay

Scm in Automotive Industry

...FINAL REPORT SUPPLY CHAIN MANAGEMENT IN AUTOMOTIVE INDUSRTY MARCH 13, 2015 TABLE OF CONTENTS INTRODUCTION 2 OVERVIEW OF SUPPLY CHAIN STRATEGY: 3 FORD: LOGISTICS AND SUPPLY CHAIN STRATEGY 3 About the company 3 Features of Ford system of manufacturing 4 Supply chain Design 4 Push Pull Strategy 5 Best practices 6 TOYOTA: LOGISTICS AND SUPPLY CHAIN STRATEGY 6 About the Company 6 Supply chain design 7 Key features of Toyota business model 7 Drivers of supply chain 8 Parts Ordering 9 Parts and Supplier Master 9 Forecasting 9 Toyota distribution model 10 Best practices 10 COMPARISON 10 ISSUES 11 RECOMMENDATIONS 12 REFRENCES 13 INTRODUCTION The Indian automotive industry, comprising vehicle and component manufacturers, has grown steadily since the economic liberalization of the early 1990’s. The arrival of major global auto companies has galvanised the domestic sector into adopting Supply Chain best practices. The changing business conditions of the 21st century has led to companies facing issues ranging from globalisation, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory...

Words: 3533 - Pages: 15

Premium Essay

Fedex

...Logistics and Supply Chain Management Practices in India Samir K. Srivastava, Management Development Institute, Gurgaon, India ABSTRACT India is the fourth largest country in terms of Purchasing Power Parity (PPP) and constitutes one of the fastest growing markets in the world. Globalization of businesses, infrastructural bottlenecks, increasing uncertainty of supply chain networks, shortening of product life cycles and proliferation of product variety have forced Indian firms to look beyond their four walls. They face issues related to choosing and working with the right supply chain partners (suppliers, customers and logistics service providers), fostering trust between them and designing the right system of gauging performance. In this paper, we present a snapshot picture of logistics and Supply Chain Management (SCM) practices in India. It is borne out of the felt need by managers, expert professionals and academicians to address logistics and supply chain practices at the national level. Our exploratory study is based on both field visits and secondary data. We capture facts, figures as well as qualitative responses about the logistics infrastructure and supply chain practices. We focus on supply chain collaboration and partnerships, supply chain structure, facilities network design, transportation and logistics and the role of Information and Communications Technologies (ICT). Field visits to at least one major facility of 25 firms were carried out......

Words: 6875 - Pages: 28

Premium Essay

Indian Logistic Industry

...INDIAN LOGISTICS INDUSTRY 2009 PROJECT REPORT ON INDIAN LOGISTICS INDUSTRY FOR PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED TO: Ms. Gunjeet Kaur Lect. of SVSM SUBMITTED BY: Rajnish Kumar Roll No. SVPG/07/05 PGDM – 6th Trimester SWAMI VIVEKANAND SCHOOL OF MANAGEMENT Ramnagar (near Banur), Patiala 1 | Page SVSM RAJNISH THAKUR (PGDM) INTERNATIONAL BUSINESS & MARKETING INDIAN LOGISTICS INDUSTRY 2009 Punjab LOGISTICS MANAGEMENT - INTRODUCTION Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective, forward and backward (reverse) flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements rather to the customers’ delight. A professional working in the field of logistics management is called a logistician. Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials, and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and to the right target customers (consumer); and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage...

Words: 20387 - Pages: 82

Premium Essay

Equity Reaserch on Commercial Vehicle Industry

...SUMMER PROJECT REPORT ON “EQUITY REASER CH OF INDIAN COMMERCIAL VEHICLES INDUSTRY” In the partial fulfilment of the Degree of Master of Management Studies under the University of Mumbai By Mr. Mihir Bhatia (Roll No: A- 05) Under the guidance of: Mr. Pranjal Wagh Prof. Nilay Savla (External Guide, Organization) (Internal Guide) Aruna Manharlal Shah Institute of Management and Research Ghatkopar [W], Mumbai-86 2010-11 Acknowledgement In the course of researching and completing this project, I have been fortunate in receiving help from many individuals, without them it would never have come to fruition. I therefore wish to express my gratitude to the following that have helped me throughout my project. I acknowledge and thank the Mumbai University and My Institute “ARUNA MANHARLAL SHAH INSTITUTE OF MANAGEMENT AND RESEARCH” who gave me the opportunity to undertake this very summer project in MMS Course. And the first person that comes to mind for this is Our Prof. NILAY SAVLA, who is not only my Mentor but also the person who made me incline towards my goal of pursuing Finance as a career. Her support and inputs are valued and respected. I wish to express my gratitude to Samarth EduFin Pvt. Ltd. to give me the opportunity to work in the Company as a Management Trainee. I am deeply indebted to Mr. Pranjal Wagh for his efforts in terms of time, energy and knowledge sharing. He has been most gracious and accommodating. Without any...

Words: 9090 - Pages: 37

Premium Essay

Warehousing and Functioning Erp in Tvs Logistics Services Ltd

...Acknowledgements I ‘am pleased to have associated with TVS Logistics Services Ltd. In the Internship project on Warehousing & functioning of ERP, a project of significance to both, TVS Logistics Services Ltd. and me. I take this opportunity to thank Mr. Pavan Nair, Regional head, TVS Logistics Services Ltd, Pune for giving me the opportunity to work on this project and also for his guidance as project guide. We are deeply grateful to Professor M. Kameshwara Rao, GITAM School of International Business for providing insightful and rich mentoring support for this project. The results of this study reflect the thoughtful input of all participants including the views of the eminent professionals in the company, solicited during the course of the interviews we had with them. Thank you to all who gave time to make this study useful. It was a most rewarding experience to work on such a challenging project. We believe that the results of this study would be helpful to TVS Logistics Services Ltd. in making thoughtful changes in the Third party logistics sector. Sincerely, Anand Vuppalapti Class of 2012-2014 Contents Page No. Preface i Acknowledgements ii CHAPTER-I: EXECUTIVE SUMMARY 4 CHAPTER-II: INTRODUCTION Overview of ERP 5 ERP Benefits and Limitations 5 CHAPTER-III: SECTOR REVIEW Indian Logistics Industry 7 Third Party Logistics 8 CHAPTER-IV: COMPANY...

Words: 10775 - Pages: 44

Premium Essay

Gaurav

...and International Ma 418 Global Marketing and Challenges for Future: Franchising in Banks K. Ravichandran, Gandhigram Rural University, drkravichandran@yahoo.co.in R. Muruganandham, Sudharsana Raamanujan, R, P. Nandakumar, M. Sasi Siddharth Thiagarajar College of Engineering, vr_muruganandham@hotmail.com, siddharth_mss@sify.com raamanujan@gmail.com, nandacivil@gmail.com The global economic scenario is undergoing a major innovative metamorphosis at a rate never experienced before. All organizations have their brands to face the global marketing challenges to secure a role of leader in this state of economic revolution. Our paper identifies the current marketing challenges and global economic threats for service industries. Besides our paper also explores the management strategies to overcome these challenges in the liberalized economy. The banking service is considered, where the franchising marketing strategies, introduction of new products and delightful customer service by new private sector banks and foreign banks pose a serious threat to the existence and survival of public sector banks profitwise. Hence our paper deeply discusses the benefits of e-banking with a view to minimize transaction cost cum operating expenses thereby increasing the overall net profit to enable for successful survival by overcoming the threats posed by foreign banks. 455 Ball Bouncing Exercise Jayanta K. Nandi, ICFAI Business School, Jaipur, ......

Words: 23823 - Pages: 96