Om Logistics needed to upgrade its outdated IT infrastructure to meet growing customer demands and compete in a rapidly expanding market. It developed an integrated ERP system using Intel Xeon processor-based servers and Linux operating system. This provided a robust, scalable solution for online consignment tracking, increased functionality, and platform-neutral access for 400 customers. As a result, Om Logistics significantly increased market share while reducing costs through improved efficiency and reliability.

1. Advanced Functionality
Increases Om Logistics’ Ability
to Meet Customer Demands
with Reliability and Security
Logistics
Collaborative Value Chain
Intel®
Processors and
Linux* Operating System
Intel®
Xeon®
processor
Case Study
Challenge
Solution
Business Value
In 1999, Om Logistics was a relatively new logistics company with plans for rapid
expansion. However, its ability to keep pace with growth and respond to increasing
competition was severely limited by an outdated IT infrastructure. The company needed to
extend the infrastructure from two branches to all 65 branches of its business. In addition,
customer demands for advanced functionality, such as the ability to track consignments
online and the ability to receive e-mail alerts 24 hours a day, needed to be addressed. Data
security was also critical for customers, many of whom were competitors with each other.
A robust, stable infrastructure was essential to making these services available.
An Om Logistics IT team developed an integrated enterprise resource planning (ERP)
solution to handle its business end-to-end. For this effort, the company deployed
two-way Intel®
Xeon®
processor-based servers and Intel®
processor-based front-end
clients, all running the Red Hat* Linux* operating system (OS), for secure, reliable
performance. The system handles 700 concurrent users, including external access
for up to 400 customers. Linux OS-based Java*-enabled mobile phones enable
tracking of the Om Logistics truck fleet in near real-time. Integrating consignment
tracking, billing, accounting and contract management has streamlined the entire
business operation.
The robust performance of a solution built on Intel processor-based servers and PCs
running the Linux operating system has enabled Om Logistics to increase its service
offerings and provide its customers with enhanced functionality. Now the company is
better able to help customers manage their procurement process while reducing costs
with just-in-time parts delivery. As a result, Om Logistics has been able to significantly
increase its share of market. At the same time, the stability and reliability of the solution
has reduced downtime and service costs, enabling Om Logistics to deliver value to its
customers and enhancing its ability to compete in the market.
Background: A Growing Business Opportunity
Om Logistics is a leading supply chain management company in India, known for its efficient handling of
surface, sea, express, train and air cargo. Among Om Logistics’ customers are many of India’s recognized
corporations in the automobile, pharmaceutical, textile, electronics, white goods, food products and other
industries. The company enjoys nearly 50 percent market share in inbound logistics for the automobile
sector. It manages the parts inventory for its automobile sector customers out of its own warehouses and
ships inventory to shop floors across India “just in time” for each day’s production.
In 1999, the automobile sector in India was growing rapidly. Om Logistics saw a business opportunity in
serving the daily production needs of automobile manufacturers across India. However, to take advantage
of this opportunity, the company needed to rapidly upgrade its IT infrastructure to be able to handle an
escalating number of transactions reliably, while meeting customer expectations for enhanced functionality
and timely delivery.

2. 2
The Challenge: Measuring Up
to Customer Expectations
Om Logistics customers have several overriding expectations.
They want their consignments to arrive on time and intact, and they
want access to current status information about shipments in
transit. The company’s IT infrastructure presented a significant
bottleneck to meeting these customer expectations.
In 1999, Om Logistics had only 20 computers, and only two of
their 65 branches were computerized. Performance was slow, and
system stability was becoming a critical issue. According to S.K.
Goel, vice president of IT at Om Logistics, “We were losing our
accounting and customer data frequently because of one virus or
another, hard disk corruptions or simply the operating system
getting hung and requiring a reboot. This meant our team was
working late almost daily to manage data recoveries.”
The software Om Logistics was using had been developed by an
independent solution provider on a proprietary platform. It
supported only two functions: consignment notes preparation and
invoice preparation. Customers wanted more advanced
functionality, such as the ability to track consignments and receive
e-mail alerts. In addition, because Om Logistics works with a
variety of companies, some of which are in competition with each
other, data security and confidentiality were of prime importance.
Many essential functions were performed manually, impeding the
ability of Om Logistics to meet the rising expectations of
customers. Change had become a business imperative.
The Solution: An End-to-End
ERP System on Intel®
Processor-
based Servers and PCs Running a
Linux* Operating System
A four-member development team, led by Goel, took on the task of
designing an end-to-end enterprise resource planning (ERP)
system capable of providing the enhanced functionality their
customers were demanding. The development team determined
that Intel®
Xeon®
processor-based servers running the Linux*
operating system would provide the reliable and robust back-end
infrastructure they needed to maintain 24x7 availability with minimal
downtime, while allowing them to easily extend support to all 65
branches of the company. Intel®
processor-based laptops and
desktops running Linux operating systems would be deployed
company-wide to provide access to the ERP system and to run
open source productivity software applications. Goel says, “We
found this combination fully met, and at times exceeded, our
performance, security and uptime requirements.”
To develop the ERP system, the development team used the
open source COBOL programming language on the Red Hat*
Linux operating system. They also deployed tracking, billing,
accounting, contract management and human resource modules
to streamline back office functions and integrated them with the
front-end ERP system.
Om Logistics has deployed more than a thousand Intel processor-
based PC clients running the Linux operating system throughout
the company. Client systems range from the mobile laptops used
by managers for productivity applications and e-mail access to the
desktop ERP clients used by back-office staff for data entry and
shipment tracking.
An online consignment tracking system completes the solution by
enabling tight coordination with branch offices and allowing Om
Logistics to inform customers about the current status of
consignments. Linux-based Java*-enabled mobile phones are
deployed throughout a fleet of 2,000 trucks. These phones
automatically generate SMS messages indicating the exact
location of each truck. Messages are sent every 15 minutes to the
“Having decided on the Linux* OS
and Open Source products,
the Intel®
Xeon®
processor-based
server was a natural choice.
We found this combination fully
met, and at times exceeded, our
performance, security and
uptime requirements.”
S. K. Goel
Vice President-IT, Om Logistics Ltd.

3. 3
ERP servers, where the status of each shipment is immediately
updated for web-based access. “Most other inbound logistics
companies are able to do so only once in six hours, giving us a
competitive advantage,” says Goel.
The servers handle 192,000 such updates a day. Om Logistics is
planning to deploy 3,000 more Java-enabled mobile phones to
extend coverage to its field staff as they make deliveries. “There
have been no problems in terms of handling the load of these SMS
messages on the server. We feel that our Red Hat* Linux* OS and
Intel®
Xeon®
processor-based servers are well equipped to handle
substantial growth,” Goel adds.
Today the ERP system handles 700 concurrent users spread over
220 locations. Every day as many as 400 customers track their
consignments on the system and give instructions for delivery of
production parts. The ERP system offers a platform-neutral
interface to these customers, who can access the system from any
environment. An end-to-end solution built on Intel processor-based
systems running the Linux operating system has enabled Om
Logistics to successfully implement a customer-facing business
model with an open collaborative environment.
Business Benefits: Robust,
Scalable, Platform-neutral
Interoperability, at a Low Cost
of Ownership
Om Logistics now has an online system that enables it to
constantly stay in touch with customers. Customers can check the
availability of their parts and enter delivery instructions, allowing Om
Logistics to handle just-in-time delivery of parts needed to meet
production schedules. Customers can track the movement of parts
from the location of origin to their shop floors. Some customers
have even implemented a gateway into their own production
system to incorporate the flow of information from Om Logistics
into their production planning process.
At the backend, Om Logistics maintains bills of material for its
customers’ products. The company ensures that inventory will be
available when needed by working with suppliers throughout India
to keep stocks replenished. It then tracks customer requirements
and delivers parts as they are needed. For example, a customer
may plan to manufacture a certain number of cars of a particular
model during a particular factory shift. The end-to-end delivery
chain keeps the production line moving smoothly, while helping
the customer save inventory costs and better manage
requirements. As a result, Om Logistics has seen its customer
base and market share increase substantially.
When Om Logistics made the decision to migrate to Intel
processor-based servers and PCs running Linux OS, the primary
decision criteria was to build a robust, scalable and highly
functional solution. Cost was not a major consideration as the
company felt that it was in its best interest not to compromise the
quality and functionality of services.
However, the company soon found that the cost advantages of its
new IT infrastructure enabled it to deliver a competitive value to its
customers in the face of rapidly increasing competition from local
companies and global players setting up shops in India. In Goel’s
words, “It was then that we realized how smart our choice was.
We had not only achieved good functionality, robustness and
scalability. We had managed to do so at lower cost due to our
choice of technologies.”
Automatically generated e-mail alerts and an online consignment
tracking facility for customers have brought call center traffic down
dramatically. In addition, the computing infrastructure built on Intel
processor-based servers and PCs running the Linux OS has
proven to be quite robust. With downtime minimized, service costs
“Our customers are absolutely
delighted with the enhanced
functionality and reliability of our
systems and services. Today, we
are recognized as the leading
company not just in market share
but in our efficient use of
technology as well.”
Ajay Singhal
Chairman and Managing Director, Om Logistics Ltd.

4. Information regarding third party products is provided solely for educational purposes. Intel is not responsible for the performance or support of third party
products and does not make any representations or warranties whatsoever regarding quality, reliability, functionality, or compatibility of these devices or products.
Copyright © 2005 Intel Corporation. All rights reserved.
Intel, the Intel logo, and Xeon are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others. 1205/CV/MESH/HOP/1K 310173-001US
have been dramatically reduced. While the number of computers
has grown from 20 to 1,150, and the number of online locations
served to 220, the number of support staff has remained at four.
Om Logistics’ original proprietary platform allowed only four
customers to access a shared Internet dial-up connection.
The system today handles 700 concurrent users, including up to
400 client systems at customer sites. The platform-neutral
interface to the ERP supports interoperability with customer client
hardware and proprietary operating systems.
Om Logistics’ choice of Intel processor-based servers and client
PCs running Linux OS and open source software led to significant
overall cost savings. Goel estimates, “The one time cost savings
for Om Logistics was $720K (USD) and the recurring cost savings
has been around $580K (USD) per annum.”
In 1999, Om Logistics was a new inbound logistics company with
revenue of $4.5M (USD). In 2004, the revenue of the company
was nearly $38M. In 2005, Om Logistics expects to close at
$58M. Leveraging its business by implementing the right IT
solution has led Om Logistics to achieve a vision of becoming one
of the leading logistics companies in India.
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For more information about Om Logistics Ltd., visit:
www.omlogistics.co.in
“Most other players are not able
to deliver our level of functionality
and service at anywhere near the
price points that we manage to
offer due to our efficient
processes and systems.”
Ajay Singhal
CMD, Om Logistics Ltd.