UTi is applying best practices from its global automotive supply chain operations to increase effectiveness in India. This includes replicating processes between regions, integrating inbound logistics to improve service levels, and optimizing supply chain costs through a holistic approach. For example, when establishing a Ford export consolidation center in Chennai, UTi analyzed supplier density to identify the optimal location considering total supply chain costs, and implemented a temporary built-to-suit facility to support overseas plants while a permanent site was developed.

1. Delhi, India
Dec 10, 2014
Automotive Logistics - India Conference
“Applying best practices to increase
effectiveness of inbound supply chain”
Hari Sivaprakasam
Director, CL&D India – UTi Worldwide

2. Agenda
2
1. Scope of Auto Inbound Supply chain
2. Replication of best practices globally
3. Integration of Inbound logistics for increased service level
4. Optimization of SC cost thru holistic approach

3. 3
Scope of Auto Inbound Supply chain
OEM PLANT
Export
Consolidation
Supplier A
Supplier B
Supplier C
Supplier D
Supplier E
Warehouse*
OEM Plant
International
Import
Break Bulk*
Supplier A
Supplier B
Supplier C
Supplier D
Supplier E
1. From domestic supplier to plant
2. From domestic supplier to plant through
warehouse
3. From international supplier to plant
4. From international supplier to plant
through export consolidation center
*Note: either external or attached to plant
Domestic
1
1
2
2
2
3
3
4
4
44
4
Milk run

4. Agenda
4
1. Scope of Auto Inbound Supply chain
2. Replication of best practices globally
3. Integration of Inbound logistics for increased service level
4. Optimization of SC cost thru holistic approach

5. Replication of best practices globally
How is UTi organized to drive replication?
5
Region
Global Lead
Automotive
Vertical
Regional
Leads
Americas CL + FF
Regional
Lead
Africa
Regional
Lead
EMENA
Regional
Lead
APAC / GC
Regional
Sponsorship
Executive
Sponsorship
UTi Executive Board
Operational Execution / Excellence
Strategic
Planning
Freight Forwarding
Operation
Finance
Planning
Global Support
Contract Logistics
Operation
Supply Chain
Design
& Innovation

6. 6
Replication of best practices globally
UTi has a strong track record of successfully replicating Automotive
best practices between continents. Few examples…

7. Collaboration of FORD & UTi at early stage of design
• Visit to Thailand to study
• Processes
• Material flow & Layout design
• Operational challenges etc.
• Benchmarking design parameters (Containers,
workforce, equipment, space etc..)
• Finalization of design considering local conditions
7
Replication of best practices globally
Ford Export Consolidation, Chennai, India – Building blocks
Chennai Laem Chabang
• 500+ Containers
per month
• Service to 5+
markets
• 900+ Containers per
month
• Service to 5+ markets
Solution Design Stage Implementation Stage
ONE P & L account holder for Thailand & India Operation
Implementation by local team with UTi Thailand support
• Thailand Ops resources onsite support for go live till
stabilization
• Knowledge transfer session
• SME from Thailand evaluated key processes and
identify any gaps in the BCP
• Training plan modified locally.

8. 8
Replication of best practices globally
Ford Export Consolidation, Chennai, India – On going activities
Common Dashboard & Metrics ReviewStandardized Process & Manuals
Shared Continuous Improvement Initiatives
KAIZEN FORM
Kaizen Description :Container report Kaizen No: 5
Originator Name :Mohan shanmugam Emp. No.: Dept : CL&D Implementation Date : 30-Jun-14
CATEGORY (Max 3 nos) sivakumar/binoy/vijayshankar N/A
(Please tick) N/A Signature
SAFETY SAFETY 1. Is SRA necessary for the kaizen before / during implementation Yes / No Zone Engr
QUALITY 2. What is the RPN for doing the kaizen Safety Risk Assessor
DELIV ERY 3. If RPN is > 4, what are the actions taken to reduce it while doing the kaizen Approval
COST
M ORALE Zone Engr
TANGIBLEBENEFITS : Safety Risk Assessor
Time saving
BEFORE (Pls use additional sheets if reqd.) AFTER (Pls use additional sheets if reqd.)
N ON -T A N GIB LE B EN EF IT S :
Manpow er utilization eliminated
EVALUATION
Scale of 1 to 5 DESCRIPTION OF IMPROVEMENT: R eductio n/ Eliminatio n o f 9 fo rms o f wastes ( Kindly tick the result(s) of your kaizen)
1=V Lo w (Pls use additional sheets ifreqd.) Inventory
2=B el A vg Container report implemented for Total container inbound , outbound , Rejection in efficient design
3=A vg container physically present status about tax invoice received status. Idle time/under utilization Under utilization Extra motion
4=A bo ve A vg Over investment Slow start up in new products
5=Excellent Internal Customer Comments : (If Applicable)
A . Effo rts ___
B . Inno vatio n ___
C . H o rizo ntal D eplo yment ___
D . B enefits ___ Comments :
T o tal=2A +B +C +2D
* Max poss=30 Date : Sign Date : Sign Date : Sign
Zone Staff : Independent Staff
Approved for doing
the Kaizen as per
the actions planned
1
Streneous process
Evaluation sign off Operations Manager :
After Container report
implementation.
Total container
inbound,outbound ,
report, physically
present,stausabout
tax invoice receivedare
Trackedaccordingly
basedon Value stream
mapping.
No clearreportsbasedon
containerinbound,
outbound , report,
physicallypresent,staus
abouttax invoice received .
Before Container report
implementation.
Quality Management System

9. Agenda
9
1. Scope of Auto Inbound Supply chain
2. Replication of best practices globally
3. Integration of Inbound logistics for increased service level
4. Optimization of SC cost thru holistic approach

10. 10
Integration of Inbound logistics for increased service level
Volkswagen Integrated JIT Program
Supplier C
Supplier A
Supplier B
Instrumental Panel,
Centre console,
Bumper etc…
Supplier 1
Supplier 2
Supplier 3 JIT Warehouse
5. JIT Sequencing
6. Inventory Management
Exhaust, seat,
wiring harness
Etc.
In Plant Operation
7. JIT Line side delivery
8. In Plant Sequencing
9. In plant line side delivery
10. Order management
11. Supplier Management
12. Spares movement and packing
13. GRN for inward material
4. JIT Warehousing
Uti Scope
20+ Families
350+ Parts
9000+Variants

11. Line uptime
at
Six sigma level
A B
C
Better Control
Reduced Cost
Standardization
Easier to maintain
standardization in process,
documentation, infra etc.
Due to
• Better purchasing power
• Improved productivity
• Lesser overhead
• Better utilization of infra
• Reduced cost of operation
from client side
Single point of contact
instead of 17 suppliers
leads to better control
and reliability
Integration of Inbound logistics for increased service level
Volkswagen Integrated JIT Program – Power Of One

12. Agenda
12
1. Scope of Auto Inbound Supply chain
2. Replication of best practices globally
3. Integration of Inbound logistics for increased service level
4. Optimization of SC cost thru holistic approach

13. 13
< 5 km radius
10-25 km radius
25-50 km radius
50-100km radius
Requirement on Ford Export Consolidation
center launched
Analyzed supplier density collaboratively and
identified the location of Export Consolidation center
next to plant considering holistic view of SC Cost*
No suitable place available and hence go for BTS
(Built to suit) as permanent solution and start
operation temporarily to support overseas plant
Optimization of SC cost thru holistic approach
Ford Export Consolidation, Chennai, India
Port
1. Background
2. Solution Design
3. Action Point
Port
FORD PLANT
Suppliers (70+)
Suppliers
Export Consolidation Centre
Built to Suit (BTS)
Day 1 Day 120
2km
(*)Tradeoff on following cost(Tactical level):
• Transportation: Inbound -> Exports Consol ->Port
• Warehousing cost includes space, manpower and
equipment
• Inventory cost almost same as it is cross-dock
3. Result
Results at Operational level:
• Improved productivity since more no. of
docks
• Seamless material flow
• Reduced cost of operation

14. 14

15. 15
Thank You