Senior Vice President

Passenger Vehicle Logistics Industry Opportunities & Challenges

RAJU KETKALE

Toyota Kirloskar Motor Pvt. Ltd, Bangalore 1/28

Co - Chairman SIAM , Logistic Group

&

SAFETY PLEDGE : I WILL ALWAYS WEAR SEAT-BELT

* Video Courtesy : World Health Organization 2/28

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

3/28

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

4/28

(Sales Trend( ‘ 000

unit/year))

824 848 826 890 1,094 1,367 1,464

1,776 2,021 1,989

2,274

3,042 3,283

3,570 3,360 3,528

3,794

6,000

-

1,500

3,000

4,500

6,000

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

. ..

20

20

Global / Asia

Indian

Market

Global / Asia

Indian

Market

Indian

Market

Global / Asia

Global Recession

X 1000

Units /

Ye

ar

Promising Future > Global TOP 3 (Manufacturing)

In the Right Place…

…at the Right Time

INDIAN AUTOMOBILE MARKET

5/28

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

6/28

“Smart Toll Booths”

“ Smart Rest-Points”

MANUAL AUTOMATED

Benefits :

Reduce Traffic Congestion & Optimize Transit L /T

Reduce paper & contribute to “Swachh Bharat”

Environment Friendly

Need / Request :

Service Providers to provide Cost-Effective Solutions

Government to support Pan-India Coverage

CURRENT FUTURE

Need / Request :

Provide facilities at REGULAR Intervals, PAN-INDIA

Facility to contain

- Safe Parking Place

- Resting Facility

- Sanitation Facility

ROAD INFRA DEVELOPMENT

Benefits :

Safe & Hygienic environment

Dignity in the Driver’s profession

a) Efficiency Improvement :

( Resource Wastage : Fuel – 750 Litres /Truck /Yr, Time – 500 Hours /Truck /Yr )

7/28

“ Well Maintained ”

Express

highways (23%)

Single lane

(26%)

Double lane

(51%)

Need / Request :

Benchmark Global Standards for Road Quality

Conversion of Single Roads to 4-Lane Express Highways

* NH Ratio

79% of highways are still

Single & Double Lane roads

P

Need / Request :

To have shortest route between two locations

Avoid any obstruction to truck movement

(eg : Railway height gauges etc )

ROAD INFRA DEVELOPMENT

“ Well Planned ”

* Source : NHAI Website

b) Road Network Improvement :

8/28

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

9/28

RAILWAYS for PV LOGISTICS

Govt. Vision 2020 Current Issues :

Successful Pilot Run :

North < > South

Next Step :

Usage Improvement by all OEMs

Biggest development in

Railway policy

Automotive Freight Train Operator (AFTO)

• Enabling Private Train Operators

• Improved Efficiency (Low TAT)

• Cost effective (High Load Capacity)

ISSUES

GOVT.

PROJECTS

2%

20% ~ 25%

a. AFTO Scheme

10/28

RAILWAYS for PV LOGISTICS

Benefits : - Increased Height & Width Availability

- Higher Loading Capacity

- Higher Avg. Speed (upto 100 kmph)

- Longer Trains

Need for Sustenance & Growth :

Port Connectivity Cost Competitiveness Increase DFCs

Under

Construction

Proposal

* Source : DFCCI Website

b. Dedicated Freight Corridors :

11/28

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

12/28

0

2

4

6

8

10

2014-15 15-16 16-17 17-18 18-19 19-20

% S

hare

Govt Plan to Improve Waterway

WATERWAYS for PV LOGISTICS

Encouraging Efforts by Govt. to

Increase Inland Waterway Logistics

Possible Sea Routes

Traffic

Fuel

CO2

Benefit : Challenges :

• Geographical Constraints may limit usage

• Beneficiary OEMs to Drive Activity

Cost Competitiveness

Infrastructure

13/28

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

14/28

FLEET DIMENSION REGULATION

?

?

• Retain Smooth Logistics

• Minimum Impact to All

Current Fleet in India :

Future ?

• External Dimensions

• Internal Quality

Major Challenge :

• Trucks with different

dimensions

• No standard fabrication

OEMs

LSPs

Government

External Dimension:

Way Forward :

15/28

• No Standard / Approved Design

• Depends on Transporter’s Investment

Impact to SAFETY & Delivery Productivity :

Absence of Walking Path Weld Joint Failure No GPS – Rely on Phone Call

GAP

Standard

fabricators

INTERNAL FLEET QUALITY

• Lack of focus on Safety Requirements

• Fabrication lacking quality assurance

Design Issue : Quality Issue :

* Leg Injury

16/28

Step 1 : Select Best Quality Fleet for usage

Rectify

Rectify

17/28

FLEET QUALITY – How to Tackle ?..

Criteria :

a) Quality of Present Fleet

b) History of Issues

a) Safety features requirement

b) Quality features requirement

a) Confirm Quality

b) Standardize Design

Approved

FLEET

Fabricator Selection Design Standardization Audit

Step 2 : Control Quality at Fabrication Stage

18/28

FLEET QUALITY – How to Tackle ?..

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

19/28

CREW SHORTAGE :

IDLE FLEET :

DEMAND

AVAILABILITY

Anticipate Shortage in near Future

20/28

DRIVER DEVELOPMENT

.

. .

Low Skilled Drivers

No Formal

Training

Poor Education

Current Issue:

Inadequate safety

awareness

21/28

DRIVER DEVELOPMENT

Mind : “Teach” What is Correct

6 Step

Approach

1. Identify

Required Skill

2. Assess

Present Level

3. Perform

Gap analysis

4. Establish

Training

Schedule

5. Conduct

Training

6. Check

Effectiveness

MIND

22/28

DRIVER DEVELOPMENT – How to enhance ?..

HEART

Practical simulation Impactful Training

(“Sathyamev Jayate” Safety Episode)

Heart : “Follow” what is correct ( Learn through Fun )

Skits for drivers Roadside awareness campaign

23/28

DRIVER DEVELOPMENT – How to enhance ?..

Rest Point - Enroute

• Rest Points every 300kms

( Eliminate Night Driving )

Facility at LSP Yard

• Cooking / Entertainment points

Environment : Care and Motivate ( Your Safety First )

Ensure Proper Rest / Sanitation place

Driver’s Cooking place (TLKI) Entertainment point (TIL)

24/28

DRIVER DEVELOPMENT – How to enhance ?..

Environment : Care and Motivate ( Your Safety First )

• Rewards for Best Drivers

• No incentive cut, even for damages

• Skit / Drama demonstration

Enhance Motivation

• Enroute simulation area setup

• Defensive Driving Technique

• Risk anticipation training through

personal actual videos

DOUJO / SafetyTraining

25/28

DRIVER DEVELOPMENT – How to enhance ?..

AGENDA

• Indian Automobile Market

• Opportunities - Roadways

- Railways

- Waterways

• Challenges - Fleet

- Manpower

• Summary & Request

26/28

OEM

OEM

OEM

LSP OEM

* OEMs to join hands in

making Logistics more safe ,

efficient and cost effective

for customer delight.

* LSPs to induce

quality trucks and

make Driver feel the

Importance by

* Educate

* Counsel

* Reward

* Government to support by

* Infra development

* Uniformity in regulation

* Appropriate Lead time

for Rule Enforcement

Request

HAPPY

CUSTOMER

Safe operation

Best Quality

Timely delivery

Optimum cost

SUMMARY & REQUEST

27/28

28/28

ONE TEAM... ONE GOAL & MOVE FORWARD