Accelerating Success: Smart Automotive Storage Solutions

Introduction

India is one of the fastest-growing markets for automobile manufacturers worldwide, and an emerging automobile exporter.

The Indian automotive industry stands at the cusp of great possibilities and major challenges. At this critical juncture, there is a pressing need for a strong and efficient storage and material handling system.

Automotive Supply Chain Challenges

1) Supply Chain Visibility:

Visibility across the supply chain is one of the main issues in the automotive industry today because of a broad range of SKUs, and variation and breadth of stock etc.

Ensuring enterprise-wide traceability includes having effective inventory planning and deployment programs.

Better clarity into the entire supply chain will also reduce risk and make the network resilient to unexpected disruptions.

The latest trends of automobile customizations according to individual customer demands have changed the face of automotive manufacturing.

Moving away from generalized features, customers now expect specific features, requiring made-to-order vehicles on demand.

This demands more flexibility and responsiveness on the part of the supply chain logistics.

2) Flexibility and Responsiveness:

A study by IBM (Global Chief Supply Officer Study) has shown that 2/3rd of top automotive supply chain executives rate cost management as a top priority.

The dual, conflicting demands of maintaining efficient systems as well as catering to picky customers can be a tough challenge to overcome.

3) Cost Containment:

Leading auto manufacturers are now looking India as their one of major manufacturing and assembly centres.

OEMs and suppliers are required to match the demand for high-quality, cost-effective parts, along with time-sensitive deliveries.

They also need to address issues related to energy efficiency, cost efficiency, and regulation compliance in the best ways.

4) Globalization:

Specific challenges for Automotive warehouse storage

Solution:Such as Selective Pallet Racking, Multi-tier Shelving, and Mezzanine Floors can add significant amounts of available storage space for a large and varied inventory.

> Selective Pallet Racking:

It provides high storage density and has adjustable beam levels.

> Multi-tier Shelving:

It is ideal for manufacturing operations and spare parts storage.

> How to maintain lean operations with varied SKUs?

> Mezzanine Floor System:

It is a hassle-free solution for creating additional storage

space.

Solution: Bin/Carton Flow System is preferred for precise and speedy

component selection, as it reduces errors and the costs associated with wrong part being picked.

Automated Storage & Retrieval Systems (AS/RS) – Picking is done with the help of automation, items can be packed more densely.

> How to implement accurate and correct picking and feeding of components into assembly lines?

Solution:

Storage systems such as pallet racks, multi-tier shelves and mezzanine floors are helpful in ensuring creation of maximum possible space.

So that all necessary SKUs are accommodated without compromising on efficiency and speed of picking.

Suitable storage systems also protect the parts/components from damage.

Storage space should also be responsive to changes in demand.

> How to maximize the given storage space in a warehouse?

Solutions:There are a few efficient ways of reducing the expenditure due to logistics:

Vendor-Managed Inventory: Suppliers and OEMs maintain warehouses at key points of the

network, the inventories of which are managed by the vendors.

The parts are invoiced just a few hours before they go into the assembly line.

This results in a reduction of the order-to-delivery time & also of the inventory that the OEM needs to keep in their warehouse at any given time.

> How to reduce logistics costs?

3PL Services:

Automotive companies should consider the following factors to find the best possible fit for their requirements:

3PL providers should have adequate infrastructure, physical resources and capabilities to fulfill the needs of the partner company.

It is critical to have modern IT capabilities that can enable real-time sharing of data, which, in turn, is vital to maintaining a smooth supply chain operation.

An ideal 3PL provider should be open to customizing their services and products for their partner, when required.

Reusable Pallets & Crates:

Instead of using wooden pallets and/or crates, those made from recycled plastic can greatly reduce the cost incurred, because they can be reused multiple times and then recycled again.

This reduces the overall packaging costs and increases the performance of the pallets and crates.

Metal pallets are also the best option due to its rigidity and longevity, and come approximately at the same price as plastic pallets.

Clearly, the Indian automotive industry stands at the cusp of great possibilities and major challenges. With tried and tested organizational philosophies, and solid infrastructural systems, it can make steady progress in the coming decades, propelling India to the forefront of automobile manufacturing.

SILVER LINING provides a wide range of storage systems and customized solutions for the automotive industry. If you would like to see how we can add great value to your storage and material handling operations, drop us an email at sales@silverliningstorage.in and we will get in touch with you.

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