Nis­san to set up stock­ing hubs for faster de­liv­ery

The Hindu Business Line - - NEWS - S RONENDRA SINGH

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.

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