To contribute to the developing and dynamic Indian market by
providing customized logistic solutions for the automotive industry MITSUI
& CO., LTD (Mitsui) and TRANSPORT CORPORATION OF INDIA LTD. (TCI) have joined
hands to set up a new joint venture company, TRANSYSTEM LOGISTICS INTERNATIONAL
PVT. LTD. (Transystem)
The Indian automotive industry is going through a radical
paradigm shift with the entry of the global majors.
No longer does the consumer have to wait for months for the then
sole model available in the market as now new entrants are introducing new
models almost monthly. This has also
helped to push the Indian auto ancillary industry. The demands for high quality and low prices have fuelled the
requirements for total quality management and business process re-engineering.
All automobile
manufacturers are looking for vendors who can help to keep their inventory
costs at the minimum, have assured and damage free deliveries and service their
customers in the shortest possible time.
Mitsui & TCI were able to identify the need for a logistics provider
who could fulfill these objectives and
identified this as a key area of growth.
Mitsui’s global and TCI’s local expertise would be used to
create an operating model that is adaptable to the needs of the Indian auto
industry. Mitsui is recognized for its international skills in handling such
operations with their numerous joint ventures throughout the world.
Mitsui’s resources and skills in the areas
of training of personnel, offering management consultant services and
development of operational systems will give Transystem a solid foundation. TCI
on its part will provide the local infrastructure such as land, building and
warehousing facilities from their large network of branches at various
locations along with the transportation backbone. It will also provide trained
logistics personnel and the Indian operational systems.
Transystem will be offering complete logistics solutions
encompassing planning, transportation,
warehousing, distribution and MIS and related documentation. One of the main
objectives of Transystem is to function as a logistic partner for Toyota
Kirloskar Motors Pvt. Ltd. (TKM) by providing them logistics
services for their up-coming project at Bidadi, near Bangalore.
The following services will be rendered by
Transystem to TKM:
Original Equipment Manufacturer (OEM)
Logistics: Procurement, consolidation and transportation of OEM’s parts through
milk run operations from various suppliers all over India to Bangalore on a
just-in-time basis.
Complete Built up Units (CBU) Logistics:
Transportation of the CBU’s (finished cars) from plant to all dealers in the
country and operation of CBU yards.
Knock down (KD) Logistics: Coordination and
transportation of custom cleared KD parts from port of entry to manufacturing
plant.
Spare parts Logistics: Transportation of
after market parts to dealers by road and air.
The Joint Venture will develop and provide logistic solutions
which conform to international standards and requirements. The knowledge base
and experience of both the companies would be instrumental in making Transystem
a success in the Indian market.