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Localization
& Local Industry Vision
The
Institute for Affordable Transportation has simplified
the inputs to the vehicle assembly business.
BUV kits allow the business to be administered by a small number of people.
For example, the purchasing function simply concerns
itself with ordering complete kits (not all the parts
that make up the vehicle).
| Purchasing |
simply order kits,
spare parts, and accessories |
| |
kits enable company
to deal with a few key suppliers (instead of
hundreds) |
| Logistics |
kits reduce
complexity and allow Third World supply chain to
be avoided in the early stages. |
| |
main task is to
expedite kits through customs and organize land
freight |
| Raw Material |
initially none |
| Investment |
limited equipment and
tools required (initially negligible) |
| Assembly |
"Nuts &
bolts" assembly in foreign country (limited
skill required) |
| |
Intuitive assembly;
few parts required, few people required |
| Design |
start with a proven
design (in kit form) |
| |
modify/optimize
existing student designs for local market |
Distributors in developing countries
receive BUV kits in 20-foot ocean containers (64 or more
kits per container). By eliminating partial shipments,
theft is reduced. The
entire ocean container is then loaded on to a truck and
delivered to the distributor.
BUVs will be sold both as kits and as
completed vehicles in each new market. Some people will
prefer to assemble kits themselves in order to save the
labor costs. As people see BUVs on the road, entrepreneurs will take note of the profit
opportunities associated with the low-technology
product.
continue
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