Automobile as an industry is a major contributor to sustainable economic growth in our country as it impacts both the supply as well as the demand side of things. Fascinating as it may sound, getting this industry up & running involves large dynamic pieces of puzzle to come together!
Challenges faced by OEMs in the new car market are magnanimous in terms of vendor management & sustenance, part quality while maintaining the right assembly mix to get that ONE dream car created for YOU. This is not where it ends though. Getting the right mix (Model, Variant, Colour) to your doorstep at the right time in the right condition is what completes the whole puzzle!
As the creator of Nike brilliantly put it – “Supply and demand is always the root problem in business. It’s been true since Phoenician traders raced to bring Rome the coveted purple dye that coloured the clothing of royals and rich people; there was never enough purple to go around. It’s hard enough to invent and manufacture and market a product, but then logistics, the mechanics, the hydraulics of getting it to the people who want it, when they want it – this is how companies die, how ulcers are born”– Phil Knight
While the used car market may not have to go through the production hell, getting the sourcing mix right with unending SKUs (each model that the OEM phases out remains an active SKU (Stock Keeping Unit) on the roads) is a logistical nightmare. Given the condition of driving & parking infrastructure in India coupled with the driving behaviour of some highly competent drivers truly makes each car different.
At India’s largest used car marketplace, we at Cars24 give each car that individualistic treatment it deserves. In terms of price discovery for the seller, setting the right documentation, and handling the car with care till it reaches the end customer, each car truly gets along its journey!
Economies of scale achieved by batch management (a ray of hope for OEMs) are not applicable here. Solving logistical challenge at 15000+ SKUs a month could only be done by getting back to basics – Standardization! Identifying patterns and standardizing services on a mix of variables (thanks to our extensive data capturing) and curating solutions with driver capability profiling, towing truck profiling (sigh! No car must meet this fate but some used cars do breakdown!) and the sturdy fleet of car carrier trucks & containers has helped us crack the solution.
Apart from logistics, understanding and designing documentation solutions for each state specific RTO (One Nation One RTO is still a distant dream it seems) simply adds the punch to this cocktail. From forging relations with the authorities while staying true to our ethos of doing the right thing is the only way forward if you have to sustain your growth as the most trusted used car player!
Not yet! But organizing a market with deep rooted mistrust on both supply & demand sides is no small feat. Setting the right framework & guardrails to give a validation of trust for these high value assets is the right start. As they say, well begun is half done! And for us at Cars24, catering to 15000+ monthly SKUs in 60+ cities is just the beginning.