Honda Motor is using a parts management tool from Servigistics to reduce inventory and hit delivery targets at six of its facilities in India. Honda Motor India primarily provides service parts for Honda Siel Cars India (HSCI), Honda Motorcycles and Scooters India, and Honda Siel Power Products India.
Servigistics will use its partner Entercoms India to implement and to support the tool at Honda’s facilities.
Once implemented, it is hoped the solution will enhance planning and decrease the delivery lead time to dealers across India by improving parts availability and could, according to Servigistics, offer Honda less procurement expenses, lower repair costs, reduced inventory carrying costs, and improved cash flow.
Efficiently managing inventory has become a pertinent issue for carmakers such as Honda in India as the industry evolves from a mass manufacturer model to modern production methods. Speaking earlier this month, R. Seshasayee, Managing Director of Ashok Leyland, said that inventory build up was damaging the industry there and that logistics needed to ensure faster supply and eliminate inventory.
HSCI sold nearly 25,000 units between April to October 2008, versus 34,500 units in the corresponding period last year. It currently produces the all-new City, Civic and Accord models in India and the premium SUV, CR-V is sold as a fully imported unit from Japan.
A wide-range of topics affecting the Indian automotive logistics industry will be addressed at Automotive Logistics India in Mumbai between the 2-4 December. Full details are available at