View presentation - Automotive Logistics

Multimodal Logistics Building a Model to meet the Industry’s Needs & Expectations
AUTOMOTIVE LOGISTICS INDIA CONFERENCE
9th - 11th Dec ‘14, Delhi
Amlan Bose
Vice President – Logistics Network, Program Planning &
Forward Model Costing, Export & Customs Operations
SECRET
Logistics Cost Review/Approval Process - New Model Launch
CEO - Ford Motor
Company
<Final Status
Review>
Global VP
Manufacturing - Ford
Motor Company
<J1 + 3 Months>
<Job 1>
<Job 1>
<GW 11>
<J1 - 3 Months>
<GW 10>
Director – AP
Logistics
<GW 9>
<J1 - 6 Months>
<J1 - 9 Months>
<GW 8>
Vice President - AP
Logistics
<J1 - 12 Months>
<GW 7>
<J1 - 15 Months>
General Manager AP Logistics
<GW 6>
<Program
Approval>
<GW 4>
<J1 - 18 Months>
<J1 - 21 Months>
2-3 Years Journey
Global Director - Ford
Motor Company
<J1 - 30 Months>
<GW 3>
<J1 - 36 Months>
<GW 2>
<J1 - 42 Months>
<Program
Start>
<J1 - 48 Months>
Material Planning & Logistics Leadership Reviews
<GW> Gate Way
SLIDE 2
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Ford India Journey – Model Launch / Volume
Ford India - Volume (in ‘000)
Annual Volume
Yr’99 - 10
: Increase of 80%
Yr’10 - 15
: Increase of 60%
Freight Budget
2012
1999
- Ikon
- (Launch of
Chennai
Plant)
2015
2004
2019
2005
2010
2011
2013
2015
- EcoSport
- Fiesta
- New Fiesta - New Fiesta
- Figo
- Endeavour - Endeavour - Figo
- Model XXX
- Figo
- Fiesta
- Fiesta
- Fusion
- Fusion
(Launch of
- Fiesta
- Endeavour - Endeavour - Endeavour Sanand Plant)
- Ikon
- Ikon
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Ford India –
Transformational Logistics Model
3PL Driven to LLP Driven
SLIDE 4
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Ford India Logistics Model (1999 – 2013)
3PL Driven Logistics Model right from Inception
3PL Driven
Logistics Model
1999
2004
2005
2010
2011
2013 2014 2015
SLIDE 5
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Ford India Logistics Model (1999 ~2013) - 3PL Driven
Key Areas for Improvements:
New Delhi
-
Static Planning/ Design
-
Lacks Scalability
-
Limited Drive for Cost Optimization
due to common 3PL-Carrier
Engagement
Logistics Model / Structure
Mumbai
Ford
Pune
3PL / Carrier
Chennai
Ex-Works Suppliers
Road Movement
Freight Terms:
- Ex-works (Milk Run)
Bangalore
- 0 ~ 50 KM - Sequenced Delivery /JIT
• 3PL Driven Logistics Model since Inception.
• Key Gap areas of 3PL Model led to search for a New Logistics Model
Line Haul Trucks
Milk run Trucks
SLIDE 6
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Ford India Logistics Model (2014 Onwards)
LLP Driven Logistics Model
Chennai Plant
LLP
Driven
Model
3PL Driven
Logistics Model
C
S
h
a
e
n
n +
a
n
n
a
d
i
1999
2004
2005
2010
2011
2013
2014
2015
SLIDE 7
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LLP Model - 2 Tier Structure
LLP Model - Key Highlights / Deliverables
- Network Design & Optimization.
- Dynamic Planning ; Multi Carrier Option.
- Milkrun/Long Haul Synergy for 2 Plant Scenario.
- Freight Cost / Service Driven Carrier selection (Based on Route strength)
- Equipment / Fleet Design Standardization.
- KPI Driven Carrier Management
- Total Logistics Cost Management and Continuous Improvement
- LLP Engagement in Forward Model Logistics Planning / Costing (48 Months in advance)
Carriers:
Carrier #1
- Flawless Logistics Execution (based on LLP Design / Planning).
- Management and Control of Consolidation Centers.
Carrier #2
Carrier #3
- Strict Window Time Adherence / Alert Mechanism.
- Driver Force - Disciplined / Trained & Cared for.
LLP- Carrier- Ford -
3 Major Stakeholders Driving towards Logistical Excellence
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Ford India Logistics Model– LLP Driven (2014 Onwards)
Illustration of Dynamic Route / Pickup Planning
North Consolidation Center &
North Sector Suppliers
Plant #2
Exports W/H
Plant #1
Dynamic Planning based on Daily Schedules (Day #1)
Milkrun
1
1
2
Suppliers
1
Common truck to
Plant #1 & Exports W/H
Direct
Plant #1
2
Carrier 1
2
Carrier 2
1
Direct
1
Export W/H
1
Consol. Hub
Overseas Plant
Plant #2
1
Milkrun
Dynamic Planning based on Daily Schedules (Day #2)
2
Milkrun
Suppliers
1
Carrier 1
2
Carrier 2
Direct
2
Plant #1
Milkrun
1
Consol. Hub
Export W/H
1
Overseas Plant
Plant #2
Dynamic Route/Pick-up Planning provides Greater Opportunity to Optimize Logistics
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LLP Driven Freight Efficiency / Optimization
Board of Directors
Approval
<Final Status
Review>
Freight Cost Per Car
Global VP
Manufacturing
Approval
<J1 + 3 Months>
<Job 1>
<Job 1>
<GW 11>
<J1 - 3 Months>
Global Director’s
Approval
<GW 10>
<J1 - 6 Months>
<GW 9>
• Network / Route Optimization
AP Director’s
• Driving Logistics Synergy (2 Plant Scenario
Approval
<J1 - 9 Months>
<GW 8>
<GW 7>
VP Approval
• Fleet Standardization
• 6> Pack Density Improvement
<GW
GM Approval
<J1 - 15 Months>
<J1 - 18 Months>
<Program
Approval>
<GW 4>
4 Years
<J1 - 12 Months>
<J1 - 21 Months>
•
Freight Efficiency through Multi Carrier Deployment
<J1 - 30 Months>
<GW 3>
<J1 - 36 Months>
<GW 2>
<Program
Spirit
Start>
of Partnership at the Heart of LLP Success
<Program Start>
<J1 - 42 Months>
<J1 - 48 Months>
<Gateway
2>
<Gateway
<Gateway
4>
Material Planning
& Logistics3>Leadership
Reviews
<Program Approval>
<Gateway 6>
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Finished Vehicle Logistics
SLIDE 11
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Outbound Logistics - FV Distribution (1999 – 2013)
Delhi
Kolkata
Mumbai
Pune
Chennai
Bangalore
Road Movement
Historically 100% FV Distribution undertaken by Road
SLIDE 12
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FV Distribution – Multi-Modal Distribution (2014 Onwards)
Delhi
Jhansi
Guwahati
Ahmedabad
Itarsi
Balharshah
Vijayawada
Melpakkam
Rail Movement
Road Movement
Future Plan
Current Rail Frequency : 1 Rake every 12 Days
SLIDE 13
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Further Opportunities by Rail Movement
DELHI
Parts movement by
Rail
Intra Plant Parts / Engine /
Transmission Movement
CVAP
RAIL TERMINALS
RAIL MOVEMENT
SUPPLIERS
SLIDE 14
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Integrated FV Multi Modal Logistics Model
Road Haulage
Rail Movement
Win Win Relationship and Spirit of Stakeholder Partnership at the
Heart of success
2008
2010
2012
2014
2016
2018
2020
SLIDE 15
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Ford India - Multimodal Logistics Vision – Future State
LUDHIANA
DELHI
Guwahati
North East region
Mundra Port
Ahmedabad
Kolkata
Mumbai Port
Pune
Chennai Port
Coastal vessel Movement
Road Movement
Colombo Port
(Bunkering)
Rail Movement
Ford India’s Vision is to Drive towards an Integrated Multimodal Logistics Solution
SLIDE 16
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Logistics Focus - Ford India
Logistics as One of the ‘Highest Focal Point’ in
Ford:
- Multi Tier/Focused Senior Leadership
Review/Approval Process
LLP Driven Management
- Single Carrier to Multi
Carrier
- KPI Driven Performance
Standardization
- Fleet Standardization
- Density Improvement
Spirit of Partnership / Collaboration
- Win - Win Relationship with All
Stakeholders
Logistics Model Transformation
- 3PL to LLP
Logistics
Cost /
Partnership /
Process / System
Multimodal Logistics
- Road / Rail / Coastal
- Exploit Full Potential of
All Modes of Logistics
Seamless LLP Engagement in Forward Model
Logistics Planning / Costing (2-3 Years in Advance
of Job 1
Our Goal - Logistics Must Win ; Logistics Industry Must
Grow & Mature
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Version 3
4th Oct 2012
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