Growing competition in the global economy as well as cost-effective transportation and logistics are the key to the success of any business. TVS Logistics, a part of the TVS Group of companies with over 105 years of experience in the line and a group turnover of over $6 billion during 2013-14, offers complete logistics solutions in warehousing, distribution, transportation, in-plant logistics support for automobile OEMs, auto parts suppliers and buyers.
Talking to the media on the cost competitiveness in the logistics business, Mr. R. Shankar, CEO, TVS Logistics Services Ltd., explained the challenges faced by this industry and the innovative solutions provided by his company. “TVS Logistics offers end-to-end supply chain solutions to its customer’s complex logistics processes. We follow a unique business model which provides our customers value-added services at a much lower cost. Most logistics companies provide only physical, infrastructural and transactional services whereas we offer consulting also as a value-added source to our customers. We also offer innovative supply chain solutions to our clients and try some of the best global practices followed by other companies. This has helped largely in retaining our customers. Almost 70 per cent of our customers with whom we started our business are still with us.”
In India, TVS Logistics further offers transporting solutions, materials handling, materials management and also warehousing solutions. “We give solutions within the plant of the customer as well as aftermarket warehousing which we do outside the plant”, said Mr. Shankar.
He further disclosed that TVS Logistics provides seamless supply chain solutions to its clients through joint ventures in the UK, Spain, the US, Germany, China and Thailand. Considered one of the best choices for low cost sourcing and complete logistics management of automotive components from India with an experience of over 10 years in this field, the logistics company has presence in about 170 projects across the country.
On the financial performance of the company, Mr. Shankar observed: “Our company has been serving more customers globally than for India. Our turnover for 2013-14 was Rs. 3,000 crores, of which almost two-thirds comes from international clients and the rest from those in India. Out of the 14 auto OEMs in India, we serve to almost all of them, as also customers from other segments, like Indian Oil, BHEL, ITC and Amul”.
With its expertise in warehousing, the company has a home-grown ERP solution, the Msys, which enables it to deliver world class services to clients and end customers. The Msys suite has applications for ERP, warehouse management system, demand forecasting and planning as well business intelligence reporting. The company has a strong IT platform which is integrated with that of its customers. With a 11,000-strong workforce for the logistics company, it requires a lot of manpower planning also.