Nippon Express' Subsidiary Bags Contract From Renault Nissan India
To provide milk-run operations supporting component procurement for the 'global compact car'
Nippon Express India (NEI), a local subsidiary of Nippon Express, has been contracted by Renault Nissan Automotive India (Renault Nissan India) to provide milk-run operations supporting component procurement for the 'global compact car'.
The car is scheduled to go into production from May 2010 at the Renault Nissan India plant currently under construction in Oragadam on the outskirts of Chennai.
The operations will entail collecting parts from about 50 parts suppliers across southern India (Chennai, Pondicherry and Bangalore) on a regular daily schedule for just-in-time distribution to the plant.
Nippon Express is already engaged in milk-run operations for the procurement of automobiles and electric equipment in China.
The company said that a well-rounded structure will be established to bolster the efficiency of Renault Nissan India's production activities, with NEI's truck fleet to be increased by 20 vehicles to improve the reliability of transport operations. An integrated system will be introduced for managing domestic transport operations and supplementing the inadequate local infrastructure environment.
In conjunction with these measures, Nippon Express is also developing a third-party logistics (3PL) system to meet such needs as securing new warehouse space near Renault Nissan India's plant and storing/distributing parts from parts suppliers inside and outside the country.
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