Episode 22

Auto industry OEM spare part operations : Key causes for challenges

Category :  Sales & Distribution

Imagine buying a vehicle and then facing high waiting time for servicing and repairs! Availability of Spares play a major role in the time it takes to get a vehicle out of the service station. Unfortunately, managing inventory of a huge range of spare parts is an Achilles heel for most OEMs.

This episode takes a deep dive into the challenges faced by the OEMs and by extension everyone in the supply chain until the customer. We also zero down on the core problem from which all the issues germinate.

To read more details about how OEMs can manage spare parts availability, read: https://www.vectorconsulting.in/research-publications/auto-auto-components/spare-parts-strategy-for-oems-in-automobile-sector/

Transcript
Shubham Agarwal : Hello, and welcome to the CounterPoint podcast. I’m shubham Agarwal. Today we are going to discuss one of the most challenging areas of operations in the auto industry. It is about managing spares parts. It is the Achilles heel for most companies. Just imagine, you brought a vehicle and the it needs servicing or repair work, how long are you willing to wait to get back the car/truck or any commercial vehicle is dependent on spare availability at the point of repair. As a customer, you want it at the shortest possible time. But for the company, it is nightmare to make all parts available. Talking around the challenges is Mohit Saini. He has close to 8 years of experience in helping large OEMs in the auto industry sort out this issue and widely recognized as an experts in this area. Let’s welcome him

Hi Mohit How are you?

Mohit Saini : Hi Shubham, I am fine. How are you?
Shubham Agarwal : Can you explain to our audience why managing spare parts is a big challenge for many companies?
Mohit Saini : So, Shubham, if you see an automotive OEM manufacturer spares, business has two major needs and at time these are these are conflicting needs it needs to satisfy the first point is that it needs to ensure the delivery of spares to the customer at the point of requirement is happening in the shortest possible time. And it’s happening for the all the possible range it is offering and this first thing needs to be done in a manner which is financially financially beneficial for the company
Shubham Agarwal : Alright, but while the second point is obviously very clear that you know the companies need to be financially sound it should be sustainable model the first point has this term called the shortest possible time. Now that could be subjective. So could you elaborate on it a bit?
Mohit Saini : Yeah, okay. So, when when they say that, the timely deliveries or the shortest possible time is still being done. So, if you see when OEM we call it original equipment manufacture has sold a product be a car or a truck to consumers, it becomes a commitment from for the OEM to ensure that space and service are seamlessly available to the customer. And if you see in some cases, large OEMs this could involve possibly around more than lakh or 1.55 lakh individual parts which needs to be readily available at all times. Right now, now, if you see ensuring spares availability is naturally a major challenge due due to enormous variety of parts involved across the portfolio the OEM deals in. And if you see as the times are changing, there are a lot of new and new models are getting launched with increasing frequency, the bucket or the the number of parts is ever increasing. Now, OEM has to ensure these large variety of part for a long span of time as in roughly seven to 10 years. And if you see there’s a further complication in this equation, that majority or a long chunk of these parts are very infrequently needed. And then and unfortunately, these will be large part or we call it as long tail or a stranger items are a fact of life in this kind of scenario. Consequently, whenever OEM tries to improve spares availability, the cash gets tied up in slow moving inventory. And at times, it’s just not enough to ensure the availability of part at warehouse or a distributed location. All parts have to be made available to the closest to the customers which is which could be a dealer or a retail shop. And because of these conflicting objectives that they work on one hand we have a huge phase which needs to be insured. And then on a second round, this needs to be done in a financially viable option. This most of the time, the The OEM business struggle for the spares availability
because of the conflicting objectives faced by the spare part management, most OEMs in India are struggling with their parts availability.
Shubham Agarwal : But the customer care a hoot about the financials. For him getting the parts sooner is the need. Right ?
Mohit Saini : So, Shubham from a customer point of view, what just was you just mentioned is bang on that what he needs is the right part at the right time and at the right location. And if you see in getting a car truck or bus getting service customer either goes to a service center, which could be authorized dealership, or you go to a local garage, garage or local mechanics. Right, so let’s let’s try to bifurcate these two. And we can say as Authorized Service Centers one leg and local gathers and mechanics other leg and try to see the deeper impact of unavailability in both areas. So now as you see, when there’s a delay of available part availability at a service dealership, which are mostly authorized workshop from the OEMs, this leads to a high turnaround time for the vehicle coming in for the Service. And it leaves customer in pain, because the vehicle is not getting serviced. And this, in turn can have a cascading effect on the service Bay availability. And it could lead to delays in repairing of other vehicles in the service center.
Shubham Agarwal : Right, naturally, yeah.
Mohit Saini : So servicing in an OEM dealership, if you see it’s usually more expensive than what can be done outside. And unfortunately, most of most often these higher prices do not translate into superior service for the customers in terms of turnaround time, or in terms of other factor which a customer sees. Hence, if you see if you see, it’s not surprising that many customers seek out cheaper alternatives. And therefore, most people leave once the warranty period ends meet the extended or the standard warranty period given with the vehicle, they leave the OEM network.
Shubham Agarwal : Right, and you’re right, I think I was looking at some ACMA data, and it matches with that data as well. Because if you only talk about the cars, you know, according to according to the ACMA data, while nearly 20% of the cars on road right now are more than 15 years old. And the typical age profile of cars reporting at the dealerships is only of less than seven years. So clearly that that point holds
Mohit Saini : absolutely absolutely this data is reflection of what we have just discussed. Yeah.
Shubham Agarwal : So Mohit, why don’t we look at the other channel which you were saying Yeah, sure.
Mohit Saini : So, now, when you say OEM also allows part to be sold outside its network outside his authorized workshop or dealers and more So for all the oldest models in its portfolio and the basic objective is to ensure good reach of these parts to counter the gap in the existing service network. And if you see this is also mandated by Competition Commission of India that if a customer wants to get to get those parts he should be able to get these items, even if it’s outside local retail shops. Now, if you see the distribution distributing large number of such parts through a network of distributors or a small trader comes with its own challenge. Because if you see these most of these players in the market be it distributors or small retailers are small businessmen which find it difficult to invest in large sum of capital in this business. Now, the problem is Scale is huge, yeah scale is huge

The problem of unavailability further gets aggregated by the presence of a few very large wholesalers in the market. And if you see, their presence is assumed to be an answer to reach the far flung areas, given the huge geographical spread we have. So companies sell in bulk to these large distributor at a cheaper rate with the hope that they will improve. They’ll help improve company reach and range and get sales from these unserved areas. But unfortunately, majority major chunk of these wholesalers are just passive seller who only sell only To those who approach them, and therefore do not serve the very objective, effectively that reaching the far flung area effectively. Moreover, they end up creating more conflict in the current in the current territories, then serving deeper geographies. Now, if you see, most OEMs have resigned them to themselves to live with this that is they have accepted that there’s going to be just like this. And the management bandwidth in spares and service business is fully occupied in expediting spares in the distribution and the service network. Now, if you see the effect of this happening, these condition is impacting the last mile availability of original parts. And this is leading to a situation or either situation for a small player to come in and manufacture and sell these items. These are mostly counterfeit items. Most of these counterfeit, because of the limited geographical presence are able to offer a better service to a retail point. And if you see that there’s a perfect recipe for them to come in the easy availability of a customer who is in dire need when is specifically when his vehicle is off road or is down. And the OEM is not ensuring the availability of its part.

Shubham Agarwal : So, the lack of availability is actually the reason why the counterfeit, you know, businesses have risen up so you know, in a way OEMs themselves responsible for it.
Mohit Saini : Absolutely, absolutely. So this is what making the business liable for the counterparts. So now you see the effect of all these factors coming together. There’s no other customer product category, where we are, we have seen such massive counterfeiting to the extent which is happening in the Indian market. If you see one of the data points, the ACMA assesses that almost 30% of the component in aftermarket are fake. Okay. And this, this sector is actually growing by roughly nine to 11% annually. Now, if you see, counterfeiting, is usually a OEMs intellectual property. And in addition to eating up the service, from as in this eating of this, gobbling the market share from the vehicle manufacturer is also having the impact on the quality of repairs, quality of service. And this actually has a far more potentially damaging impact if there’s an accident, or is it can actually endanger the life of a person because of the faulty parts getting into the vehicle.
Shubham Agarwal : Yeah, right. I think yeah. So there are lots of repercussions that happened because of such counterfeit, you know, spares being installed into vehicles.
Mohit Saini : But one view point that many in auto industry has, is that proliferation of spurious parts is because of low cost. But you are saying it is about availability? How do you refute this argument
Subham : I think the impact of bad parts availability can also impact brand of the OEM
Mohit Saini : Absolutely, absolutely. So now, the further magnification you see, what unavailability leads to inefficiencies in service center and ironically, it takes away the advantage of what should have been a monopoly market for the OEMs because it’s finally their their vehicles, they should be the first one who should be servicing these items. And if you see that, if customers or the mechanics struggles for parts or part quality, whenever they want to do a repair or for the maintenance or for some other activity, they judge the OEM poorly because of the, suppose for an example I’m taking if suppose they don’t get a Tata Motors or a Maruti Suzuki part, they are going to associate that okay, I’m not getting this part somehow the Tata Motors or the Maruti is responsible for making sure this part has to be available.
Shubham Agarwal : Yeah, we do that. Correct. Right.
Mohit Saini : So now if these frequent, these experiences are very frequent, then it leads to a negative impact in vehicle sales because if you see specifically for commercial vehicle segment or your agri auto segment, there’s a huge chunk of repeat sales which comes in and from which comes from the existing customer. And this is typically true for car also as in. So if a person or customer is having an uber negative experience, then it actually impacts the vehicle sales of an OEM. Now we can take a Fiat, we can take this case in point, which has very superior production, but very limited availability of parts which cascaded into poor service for the customer. Now, if you see Fiat, even after those having a superior product doesn’t stand a chance against the automotive giants like Maruti or Hyundai in our market.
Shubham Agarwal : Right? And you’re right, and I’ve heard this, you know, a lot in the market is well that don’t buy that car because, you know, you won’t get it serviced easily. And that’s a very famous, and rightly so in India, you know, parameter to judge what to buy and what not to buy. Basically, there’s, there’s not just lost sales, there’s a loss of brand equity and, you know, the brand is hampered, basically,
Mohit Saini : At times it’s it’s this spares availability in service becomes the sole sore point in company’s growth, like what we discussed for Fiat.
Shubham Agarwal : Right. So,Mohit, let us explore the Why behind all these problems. Can you tell me about the core probem or the root cause.
Mohit Saini : So, if you see if you start dissecting and trying to understand why this happens, there could be many theories coming in, but what we believe this chronic availability issue is is having it screwed in the way that typical OEM operates, let me just give you a brief about when I say what does that typical operation means. So, now, if you see an OEM they typically work on two to three months rolling schedules and these schedules are based on sales forecasts of individual items. And these schedules are rolled out to their vendors that from from whom they are sourcing their items, and who are asked to manufacture and supply as per the schedule. In addition to the supply being unreliable, the fact that most forecasts are inherently poor prone creates a situation where when some items are stocked out and others are in surplus at the same time demands demand, which is coming from the market sometime tends to get skewed with a high month-end spike due to the prevalent practice of pushing material at month end which is with or either done with either sales incentive or tod which are being offered and these are these are present in the system to meet their sales target. This is a one reason room Yeah, yeah. So, absolutely hockey stick syndrome and this is the this is one of the reasons why if you see the distributor community community in India tend to keep almost 45 to 50 or 60 days or 90 days of inventory even when the company’s nearest warehouse is just a stone’s throw away distance as in just few kilometers Okay. Now, if you see the pushing part to channel partners, inherently as we said this is a huge environment with a huge long tail is there then move many of the items are slow moving and this aggravates the problems the speed at which the stock rotates deteriorate because channel partner is exposed to such to smaller in highly variable demand in the restricted geography and the inherent nature of many of the items are very a laggard or a longtail item right. So, that tells us practice impact the buying power of channel factor because their capital is stuck in some of the items and their ability to restock when this when the item is sold. So, even if they want to buy item because their capital is stuck, they will not be able to buy those items when it’s getting stocked out. So that they the the daily working capital woes for a distributor forcing him to restrict his business and many times issue service only a limited set of set of retailers who perceived as a low risk or a low credit risk item as well as he also restrict when he sees that these are the items many of the item my inventory is getting stuck let me not deal with such a huge range of inventory Let me restrict the range. So, he is doing two things whether the capital issues is limiting the range of retailers who is working with as well as limiting the reach as limiting the reach as well as a limiting the range. So he is picking and choosing. Yeah, net net impact is that the availability of space is reducing in the market.
Shubham Agarwal : So, how do we start to solve these issues which are crippling the system.
Mohit Saini : So, if we want to discuss about any solution, any solution should aim at ensuring parts are available at the shortest possible time. But this has to be realized at some are either same or the lower levels of inventory and nobody in the entire chain should should be burdened with the extra investment. This should be the basic underlying philosophy of when we are trying to discuss with for any solution
Shubham Agarwal : the reason I’m laughing is because I’m sure the listeners are like, is that really possible?
Mohit Saini : Yeah, absolutely this this keeps on coming when we then start having such discussions. Yeah.
Shubham Agarwal : interesting piece. Yeah. Okay.
Mohit Saini : So now for, let’s do one thing, let’s try to classify these items into various categories. And let’s try to create a distributor strategy so that our listeners are able to relate to it. Now, based on the sales frequency, or the demand at a point of sale the parts can be classified into roughly four or five categories. One is fast movers these are regular maintenance part like filters, oil, brake lining clutches, clutch belts, oil seals, battery extracts extractor means other typically items which are regularly required for the maintenance and in terms of sale, these are usually 60 70% of the volume or the value which is being sold by in the spare part market. There could be second category could be erratic parts these parts which are prone to frequent damages like gear parts bumper windshields and these may also be exclusive part needed for preventive maintenance or for lesser popular models or consumables or items needed for some minor accident when it happens you know, while the vehicle of particular model may not frequently visit service center as far as the customer is concerned, these are regular items, because he because for him, he will not be waiting as in for the system it might be erratic part but for him he needs it when he needs it
Shubham Agarwal : correct as soon as soon as possible, correct :
Mohit Saini : then there is a slow movers. These are infrequently used repair parts for failures which for like for radiators for window glass fuel injection crankshaft and there could be other category as stranger parts are very rare parts these are majorly the major repair or accidental parts which which have a very small way of failure in a regular motor vehicle operations, this for an example this would be axles transmission, cabin, doors, fuel tanks, locking system and in such all of these cases accidental insurance comes into play when which usually takes 10 to 15 minutes It has its own time. So as as long as the parts are available made in this window of whenever customers are seeking the insurance approval, they there would not be any hold up for the customer due to the unavailability of the part and then last category is out of circulation parts these are usually stranger part that belong to four years or five years older models which OEM is no longer producing. And even though these parts are not using current models, OEM is legally expected to maintain these parts for repair and replacement at the at the at their Authorized Service Center or as well as also pump these items into market. So that these are these are available when our customers needs
Shubham Agarwal : yeah, we looked at five categories just to quickly reiterate these are first mover parts, the second is erratic parts. The third was slow parts. Then we have the other two categories which are stranger parts or rare parts and the out of circulation parts correct. Yeah, yeah. Yeah. So let let us look at you know, what, what strategy would we take for each of these one by one.
Mohit Saini : So let’s try to define a distribution strategy for which is based on these categories. If you see based on these category, it is evident that the frequency with which each part is demanded at point of sale. And customers his willingness to wait can be used to decide which part has to be stopped where in my supply chain for an example. That’s why the fast mover has to be ready Available service dealerships or at a retailer customer is not usually the customer service is not usually jeopardized for a stranger part is not immediately available at hand right you will still be patient Yeah. So, so, most customers are willing to wait for out of circulation parts this means that while the frequency frequently needs your parts are held closer to the consumption point, the less frequently demanded part can be further held in up chain of the supply chain okay. So, how does this help? This helps in reducing the SKU that has to be held at different stocking points. But the challenge in this environment is that sometimes there are vehicle off road situation and some customer is intolerant or to waiting and repairing, bay blocking. This this forces service point to keep a large number of SKUs now, but by questioning the assumption that this range has to be carried individual individually as they currently do a manually beneficiary method can be involved let me just further elaborate. So, what I what I mean is stock is a function of time therefore significantly reducing the lead time of a of a part which is reaching to a dealership or a distributor from the next node or which could be a regional service warehouse or could be a branch of a company in the service distribution network can lead can aid in reducing the stock a dealer has to maintain and similarly, availability at a central point can reduce inventory which is to be kept at a regional warehouse. That means for a regional warehouse, the central warehouse is a supplying entity thus when a lead time you reduce the minimum inventory to be held at various nodes in the supply chain or the network can for can reduce for every SKU enabling stocking of increased range of spares in the supply chain within the same ambit of the working capital which is being deployed by the different entities in the supply chain. In addition to decoupling the supply chain supply lead time from the replenishment lead time central warehouse if we say it is if you see it’s acting like an entity we are calling as a decoupling entity is also acting as a dampener to absorb fluctuation in spares demand. That means whatever demand is coming from the market, the the inventory which is being kept at a central warehouse is absorbing all those variations. The greatest variability in part demand is logically is at the point of sale while the CWH which is which is an aggregated location services defined from all points experience the least variability in the entire supply chain.
Shubham Agarwal : Aggregation reduces the variability.
Mohit Saini : Absolutely. Absolutely. Absolutely. And so now using this benefit of aggregation, CWH is able to serve many different destination in the supply chain far more efficiently, while keeping lowest possible overall stock in the system. So, just to summarize, what we said we made two three points, we said we have to categorize parts, which were to be kept in the supply chain based on the frequency because the customer tolerance time is there for our circulation part. Now, we also said that if the stock is a function of lead time, so we can if we reduce the lead time in the supply chain, by always maintaining inventory at the previous node and supplying in time, the dealership or a distributor do not have to maintain huge chunk of inventories. So in the same capital, they will be able to ensure a larger ranges being made available to the customer. Then we said because of principle of aggregation and decoupling effect, the CWH is able to have lots of items and without locking a lot of capital in the business.
Shubham Agarwal : Right. So I think the solution looks really great. And I think that that lays the foundation of, you know, the tenets on which we should build the solution. But I’m sure you know, the Murphy as you all know hits at any point and it becomes really uncertain in the you know, the entire supply chain to be handled. What I want to understand is how do we ensure that a sustainable distribution strategy you know, is put in place which kind of ensures continuous continuous availability in the market at all times?
Mohit Saini : Yeah, yeah, absolutely. This is, this point must be bothering audiences also. The distribution strategy is fine. But in this strategy, if we need to succeed, availability has to be ensured that all points in the supply chain and that means the central warehouse you ensure the regional warehouse or distributor dealership or at retail point now and the only possible the supply chain move away from the damaging push system and implement a pull system of replenishment that means instead of moving instead of pushing inventory downstream, each node quickly responds and replenish the depletion of inventory maintained at the subsequent note
Shubham Agarwal : Could you elaborate on this a little more?
Mohit Saini : Okay. So, now in the system, if you say the if you let it start from the vendors, the vendors in the system has to supply as per the actual consumption of the central warehouse instead of a forecast we said two three months of forecast, we have to just now supply based on the consumption which is happening from the CWH. So, what it means is the prevalent approach of schedule based planning for spare spare sourcing, not only creating which not only created de-sync with the real demand, but it also lead to the finished inventory piling up either at a vendor and or at a warehouse and when the item is unexpectedly in surplus. So now moving away from this push system to a pull system, where the inventory movement is happening based on the actual consumption takes away the need to arrive at an accurate forecast and send into monthly forecast now, they only need to communicate that what is the indication of stock level against a norm or a buffer which is being designated at a at a at a central warehouse. And so, what how it can be done. So, a communication system can be setup which indicates the level of stock is the norm between the OEM and the vendor on an on a daily ordering system, the vendor can manufacture and corresponding corresponds the corresponding part and replenish the stock as for the OEM variety, which is actually set on the actual stock level comparison to the norm, this system enables the supplier to receive purchase order in a hassle free manner the constant change in order priority that was causing the capacity loss of suppliers and unneeded FG which was getting piled up can also be eliminated in the system. Now this was happening this is explaining the change window. Yeah. So this is how what is what is going to happen now between vendor and the CHW. Similarly, taking the logic forward, the consumption based inventory movement can be triggered between a central warehouse and a regional warehouse and from regional warehouse to a service center or a distributor from a distributor, we went to a retailer. Now, between the between any two links, the inventory should be moved based only on the immediate pull signal which is actually based on the consumption. And the buffer levels, that means the stock available against the buffer which is being set up in the system signals the priority for the replenishment. And what we can also do is we can have a fast courier service which can be engaged for a rapid movement, stranger for us, or for a stranger or a slow mover item from a regional warehouse to a central warehouse, or to a point of sale of a service. Yeah.
Shubham Agarwal : Right. This is great. I think this is much more detailed and are looking at all the practical aspects of the supply chain. So I want to understand some of the benefits that you’ve seen in the market because of these solutions as a result of the implementations that we have done,
Mohit Saini : yeah, so this model of managing spares gives immense immediate benefit to service dealership and distributor. So what they end up getting is highest sales are achieved as an effect of better availability of the entire engine of the supply chain, and the inventory doesn’t go up. So, if you look the financial impact, they end up getting higher ROI. So if they’re getting higher ROI from their existing set of business, this gives us the or motivates them to invest more resources towards improving reach and range in for the customer service in the market. So it becomes a virtuous loop wherein they are getting a higher ROI and which leads to them putting more capital in the business which intends to improve the reach and range for the customers in this customers in the market.
Shubham Agarwal : Wonderful. seems really interesting. Can we you know Could you please share a case study or you know, any example where similar models have been implemented by an Indian organization.
Mohit Saini : Yeah actually many of the Indian OEMs have implemented TOC based pull based replenishment system to their supply chain. And some of them have done with Vector Consulting. For this transformation, for example, we we have worked with Tata Motors Ashok Leyland, Volvo Eicher, in commercial vehicle segment, Royal Enfield and TVS motors in the bike segment. And we have also worked with Sonalika Tractors in in the tractor segment, not just the OEMs. But at times we see OE vendors, which also implement because they also cater to the aftermarket requirement, they’ve also deployed this process. To name a few, we have worked with Fleetguard Filters, Shriram Pistons, Fenner, SKF Bearings. So there’s a list this is a huge list who have actually moved to a pull based system and got such kind of benefits.
Shubham Agarwal : Lovely. So that’s great. I think it was a wonderful discussion. Before we end the discussion. Could you also talk about some of the benefits that some of the names that you’ve mentioned, you know, kind of, if you can share some numbers or metrics on which we have evaluated? What are the kinds of benefits that you’ve seen?
Mohit Saini : Yeah, so let’s do a case of very high degree of complexity, which seems so let’s take a case of Tata Motors Spare Parts Division. Now they have more than one lakh parts in aftermarket they had a huge network of 568 houses across the country and they had more than 450+ vendors and 1000 plus channel partners. Okay. So now, as we said we had in the supply chain we have as we had a CWH and we had regional warehouses, and then we are servicing dealerships and distributors. So for them, they they had we have done in less than almost 35,000 parts were decided to be kept and arranged at central warehouse, wherein this was part of a pull based replenishment cycle. So if you see their availability went from 54% to 94%, roughly well, and this happened at a CWH level will while their inventory went down from 67 days to around 55 days of inventory. So there was a reduction in the inventory which they’re keeping and the availability went up same with a dealership all the channel partners are dealership availability also jumped to higher 90s from the 70s percent range and they also experienced a decrease in inventory by roughly around 25% in the capital as in the kind of inventory which they were keeping. Also there was one major impact when we streamline the network their percentage of the logistic costs as a percentage of sales actually went down for them it amounted to a saving for almost 10 car per annum which we can can experience perpetually and the most significant part if you see Shubham in the chaos what was there when translated to a harmony in the entire supply chain the firefighting went down the vehicle off road cases went down and all this happened while the business was booming and buzzing and growing.
Shubham Agarwal : Wow, that’s that’s quite an impact and that’s quite a return I would say and like you said you know the chaos to harmony point I think there is no price that you can put to peace of mind which is by far the greatest you know, outcome right
Mohit Saini : one of the positive side effects for entire for implementing pull based replenishment systems
Shubham Agarwal : I write right. So, I have this one more question you know before we end an electric vehicle or EV has been the new upcoming thing, a thing of the future How does the change in the vehicle mix you know on the road is going to change the dynamics of the spares part because for EV vehicles these spares part definition might be entirely different right.
Mohit Saini : Yeah and this now this question regarding the EVs are actually coming in many discussions when we discuss the supply chains, how the supply chains are going to change because of this. So now, if you see one aspect it’ll definitely bring some modality in terms of standardization of many child components, which is going to happen because of range reduction in the driving items. However, if you see the underlying challenges which we have been discussing, are still going to be same Now, there are going to be still unforeseen changes in the demand there’s still going to be huge variety of part they’re still going to be huge supply variations supply unreliability which is going to be there in the system. So, if you see the if you see the TOC pull base replenishment solution would help an auto EV company to a similar degree, if not more, as it has, has helped other auto OEM companies in the market. So that’s what what what how I see in terms of supply chain, the problems are going to remain the same. And fundamentally the solution is also going to remain the same.
Shubham Agarwal : Great. Alright, I think that was a wonderful discussion. Thank you so much for taking us through the entire problem, the concerns that marr the auto spares market in India and also how can we look at solutions which are not just profitable but sustainable as well. Thanks a lot for all the listeners. You can find more details on this topic, we have shared articles in the details to this episode. Will come back in the next episode with another interesting topic. Thank You!
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