BACKGROUND
Supply chain management (SCM) in the Telecommunications industry today needs reliable design and versatile tools to control material flow. The objective for an efficient Supply Chain is reducing inventory, lead times, and related costs to assure reliable and on-time deliveries. Modern telecommunication warehouses/plants work with multiple and varied component suppliers. Component lead times could vary from few hours to several weeks. To minimize component buffers and tied-up capital in the supply chain, planning and timing the availability of the components is of great importance. Improving real-time visibility and information in operation, therefore, becomes critical. The complexity in such operations only grows when a company operates in a large market with a diverse geographical presence.
BUSINESS CHALLENGE
- With the introduction of GST, it was essential for the company to optimize its distribution network.
- Challenges in managing inventory, lead time, related costs, and on-time reliable deliveries.
- Need for an agile partner that could adapt to operations and act promptly to match scale-up and scale-down activities.
BUSINESS SOLUTIONS
Mahindra Logistics analyzed the entire supply chain of the organization. We realized that it was important to create a plan not just from an operational point of view but also consider a strategic point of view. Mahindra Logistics looked at 3 main aspects to increase the efficiency of Supply Chain Management:
LOCATIONS
Mahindra Logistics analyzed the current distribution network and suggested replacing the current supply chain model with the Hub & Spoke model to optimize and bring in operational efficiencies. The geographic placement of facilities and warehouses was the first step in creating an effective supply chain. With the introduction of GST, a Hub & Spoke model proved to be the most efficient.
Multiple simulations were made on a real-time basis to select the best available option which led to consolidation and reduction of warehouses from 7 to 5, categorized as 1 Hub, 3 Spokes, and 2 Cross Docks.
INVENTORY
With the evolution of logistics, technology plays a crucial role. At Mahindra Logistics, technology is an important driver in deriving efficient and effective solutions for all our customers.
- Inventory Management - Inventory Visibility
- BOM & Packing Management - Provide Value-added services
- Put away and Pick up Configuration - Maximise Warehouse Throughput
- Zone Management - Optimize Space Utilisation
- A thorough and methodical approach was followed for designing the warehouse. Improvement plans were developed to control circle-wise inventory and use the facility optimally.
- Usage of best-in-class warehousing tools and practices like WMS, GEMBA tool, 5S, etc. aided in 100% mapping of the storage locations, thereby removing many inventory management obstacles that inflate supply chain costs and ultimately reduce profitability. This resulted in less inventory storage & a reduction of cost. The inventory cycle was reduced significantly from 45 days to 30 days at Hub and to 7 days at Spoke
TRANSPORTATION
- Centralised Control Tower - 24/7 Helpdesk Support
- Data Analytics - 1. Performance Analysis. 2. Close Monitoring
- Exception Managemen - Enhanced visibility for decision making
- Vehicle Tracking - 1. GPS/Non-GPS Tracking. 2. Track Vehicle movement and route
- The use of proprietary technology software & tools viz. Mycargo 360, TMS, etc. provided complete end-to-end visibility of operations, with proactive action on information by comprehensive data analytics.
- Transport Management System (TMS) provided 360ยบ transparency through data sharing, analytics and MIS reports across all stakeholders thereby providing seamless visibility to operations resulting in operational efficiency.
- The TMS platform enabled collaborative logistics management and helped in optimizing routes to cater to the circle wise requirement (3G, 4G) and save operational and freight costs through shipment consolidation.
BUSINESS BENEFITS
MLL as a single service provider for all the Supply Chain needs simplified and streamlined operations for them that resulted in improved lead times and performance. We demonstrated consistent improvements, showed flexibility, promised inventory ownership, and stock accuracy matching the demand signals, thereby boosting the supply chain efficiency. This journey is a strong testimony of Mahindra Logistics' commitment and success in a highly competitive and price-sensitive market.
- Total warehousing space reduced by 30%
- Improvement in TAT for site servicing
- Reduction in inventory cycle and holding cost
- Overall logistics cost reduced by 10%
- Visibility across region
VALUE ADDED SERVICE
Value-added and customized services were undertaken as part of the project which included complex & intricate services like kitting and packing of antennas.
