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Ashok Leyland hunts for payment gateway partner
N Madhavan
Chennai : Commercial vehicle major Ashok Leyland Ltd (ALL) is in talks with leading banks and finance companies including its associate concern Ashok Leyland Finance for putting in place a payment gateway mechanism for its B2B portal leyparts.com. The portal, set up earlier this year for online spare parts trade, has received an encouraging response from ALL's dealer community. About 7,000 hits have been recorded so far but the true potential could not be realised as payment was not online, said Mr Amol J Sandil, executive director (marketing). ALL's annual spare parts sale amounts to Rs 250 crore and the company seeks to bring at least 10 per cent of that value through the online system by the end of this fiscal, he added.The institution which will handle the payment gateway will evaluate ALL's dealers, fix their credit limit and give them a code number. Once the dealer places his order by giving the code number and the order is executed by ALL, the finance company would release the payment. All these would take place simultaneously. ICICI Bank is reported to be one of the banks which is working with ALL on this issue. As logistics holds the key to success of any B2B portal, ALL is also in the process of overhauling its logistics infrastructure so as to ensure that the spares are delivered in the shortest possible time. Towards this, it has handed over the operation of its three largest warehouses in Nagpur, Delhi and Bangalore to specialist logistics companies. Its Central Warehouse in Nagpur is being operated by Sembhawang group of Singapore while the Bangalore warehouse is managed by TVS Lean Logistics, a TVS group company. By getting experts to handle logistics, ALL seeks to cut down drastically the lead time for any dealer to procure spares, Mr Sandil said while adding that ideally they should be holding stock of running inventory only. By the year-end ALL will complete the exercise of connecting all its dealers and this is expected to increase volumes in the online trade. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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