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Our Bureau

Will help ease margin pressures

Chennai , Dec. 13

Efficiency in supply chain will become the key business differentiator for auto companies in future.

According to Mr R. Dinesh, Chairman, Auto SCM India 2006, the industry needs to adopt a responsive cost supply chain at low costs.

Speaking at Auto SCM India 2006, a two-day seminar organised by the Confederation of Indian Industry (CII) - Institute of Logistics, he said a robust supply chain could ease margin pressures on companies. For instance, transportation, a major supply chain activity, is often managed in-house leading to high expenditure and at times delay. By outsourcing it to third party logistics providers, supply chain could become more efficient, he said.

He also stressed on State Government support in areas such as improving port and road infrastructure that were critical to supply chain.

Mr Shaktikanta Das, State Industries Secretary, said the State Government was in talks with the Chennai airport authorities to provide 24-hour customer service. Also a committee, in consultation with various industry bodies such as CII and FICCI, was working on de-bottlenecking traffic prone roads in the State, he said.

The State is also taking steps to improve connectivity between key automobile and auto component manufacturing regions such as Madurai, Coimbatore, Hosur and Chennai. "Most component suppliers are from tier-II cities like Madurai and poor connectivity to manufacturers in Chennai would lead to an inefficient supply chain," he said.

Mr K. Suresh, Chairman, Chennai Port Trust, said a multi level car park was being built at the Chennai port. The Rs 52-crore project is a joint venture between Hyundai and Chennai Port Trust. The construction of the car park would commence this year, he later told Business Line.

The Tamil Nadu Minister for Electricity, Mr Arcot N. Veerasamy, inaugurated the event and released a logistics and supply chain directory published by CII.

More Stories on : Automobiles | Supply Chain Management | Tamil Nadu

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