Nissan to set up stocking hubs for faster delivery
To get closer to its dealers and for quicker delivery of its products, Nissan India is setting up inventory hubs in various parts of the country to stock its cars, thereby optimising logistics costs too, a top official said.
“Logistics in India is a challenge, but it needs to be organised by the original equipment manufacturers, and we have taken the first step. Beginning this year, we started our first hub in the North (Manesar),” Thomas Kuehl, President, Nissan India Operations, told BusinessLine.
He said this was started as a pilot and once it materialises, similar hubs will be set up in the western and eastern regions. “Normally the companies stock up such hubs around the factory and then start logistics. But we said we will have stock around the dealers...we have started with a capacity of 400 cars and will further expand as and when needed,” he said.
Kuehl said such hubs will also help optimise logistics cost and are environmentally-friendly because most of the cars will be brought to these hubs through Railways and, for the last mile connectivity, trucks will be used.
He said: “Right now, the company’s inventory level is around two months, but with the hubs, it will come down to one month,” Kuehl said.