A business proposal given to Voltas for logistics services.

1. SCM SOLUTIONS
Logistics Solutions
For Voltas Limited
Warehouse Manageme
nt
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2. Agenda
SCM SOLUTIONS
1. Voltas Expectations
2. Engagement Scope
3. Executive Summary
4. Recommendation Details
1. Site Selection & Distribution Network
2. Warehouse Layout, Organization & Process Flows
3. Warehouse Construction & Material Handling Equipment
4. IT Systems
5. People
6. Performance Improvement & SLAs
5. Implementation Roadmap
6. Summary of Costs/ Benefits
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3. Voltas Expectations
SCM SOLUTIONS
Short-term
• Provide Warehouse Facility
• Provide Warehouse Operations Management
• Provide Warehouse Infrastructure
• Provide Quality and consistent manpower
• Management Information Visibility through IT integration
Long-term
• Reduce costs
• Optimize networks
• Complete end- end logistics solution
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4. Engagement Scope
SCM SOLUTIONS
Scope of Operations
1. Warehouse Management
1. Warehouse Set-up
Planning, Site/ Infrastructure selection & set-up, Material handling equipment
selection & set-up, People sourcing, Systems selection and implementation, process
definitions & implementation
2. Warehouse Operations Management
Day-to-Day Warehouse Operations Management including Receipts, Inspection, Storage,
Order Processing & Invoicing, Assembling, Packaging, Value Additions, Dispatches, Sample
Issues, Returns/ Damage/ Obsolescence Management, Periodic Stock Count,
Warehouse MIS, KPI Monitoring/ Productivity Monitoring, Service Level
Agreements, Continuous
Improvement
2. In-city Distribution Management
Day-to-Day In-city Distribution Management including Load Handling, Transportation, Tracking,
Transportation MIS, KPI Monitoring/ Productivity Monitoring, Service Level
Agreements, Continuous Improvement
Out-Of-Scope
Short-term
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Out-Of-City Distribution Management
End-to-End logistics ownership
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5. Executive Summary
SCM SOLUTIONS
• Warehouse Location selected as Chennai.
• Warehouse Layout, Organization & Process Flows defined
• Right construction and material handling equipment has been chosen
• Right IT systems and people plan has been drawn out
• SLAs have been defined along with a continuous performance
improvement plan
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6. SCM SOLUTIONS
Recommendation Details: Site selection & Distribution Model
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7. Site Selection & Distribution Model: Factors in Warehouse location selection
SCM SOLUTIONS
Key Criteria (Cost vs Speed to Market)
Costs
Warehouse Operation
s & Maintenance
Distribution cost
Speed to Market
Short Order – Delivery cycle (Same day)
Proximity to receipt & delivery
Additional factors:
– Availability of Transportation
– Infrastructure
• Roads
• Power
• Water
• Other utilities
– Availability of skilled manpower
– Government Regulations
– Strategic Factors (Monitoring & Control, Pre determined sites, future plans)
– Environmental factors
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8. Site Selection & Distribution Model: Network Diagram
SCM SOLUTIONS
Order
Management &
Inbound
Transportatio
n
Outbound
Transportatio
n
Visibility Customers
– All India
Supplier- 1
Returns
Customers
– All India
Supplier - 2
Voltas Custo
mer
Care
Warehouse
Management
Carriers
Supplier- 3
Customers
- Delhi
Scope of
Engagement
Customers
- Delhi
Supplier – 4
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9. SCM SOLUTIONS
Recommendations Detail: Layout & Process Flows
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10. Warehouse Construction & Material Handling Equipment
SCM SOLUTIONS
Warehouse layout, design &
construction
Features/ Advantages
Pre engineered WH features
• Tailor-made solutions for costumers needs & custom design to meet exact requirements
• Buildings are designed to accept most types of Integrated Cranes, EOT’s, Under-hung Cranes, Conveyers in clear
& multy-span Bldg.
• Easy & quick erection and simple Bolt-on assembly construction
• Easy to uninstall & re-erect with minimal damage & time
• Mezzanine floor for office purpose
• Weather tight Double skin insulated construction for Roof and Wall cladding (5-8 degrees)
• Steel Structure with span of 30 m X 10 m
• Durable Concrete Flooring & floor height at Chassis level
• World class design & material used for extended life and no periodic maintenance required
• Low thermal mass construction provides energy efficient buildings
Advantages
• Architectural Versatility
• Expandable, weather tight & maintenance free
• Energy Efficient Roof & Walls
• Fast Construction
• Dust Free Flooring.
• Spacious Aisle for MHE Movement
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11. Warehouse Construction & Material Handling Equipment
SCM SOLUTIONS
Process: Putaway & Packing
Equipment: Pallet Strapping
Function
This unitizes the carton load
Benefits of Nortex Strapping
•
•
•
•
•
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•
High strength Textile Strap
Light in use
Can take up any shape without damaging the product
Can be Re-tensioned if required
Faster Operation
More elongation & recovery
More Impact Resistant
Re-usable
Characteristics / Specifications
• Brand name: Nortex
• Strap Width: 16mm
• MS Buckles
Rationale for Selection
It prevents load from falling and Nortex is considered the best in the
industry
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12. Warehouse Construction & Material Handling Equipment
SCM SOLUTIONS
Process: Putaway & Picking
Equipment: Reach Trucks
Function
Used for loading and unloading pallets
Characteristics / Specifications
Models: BT Reflex B/E 1-8 AC
Capacity: 1600-2500 kg at 600 mm LC
Lift height: Up to 11.5 m
Turning radius < 9ft
Rationale for Selection
Tried and Tested Reach Truck meeting Voltas requirements
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13. Warehouse Construction & Material Handling Equipment
SCM SOLUTIONS
Process: Putaway & Picking
Equipment: BOPT
Function
This equipment is mainly used for quick movement of goods within
warehouse. Ideal for small loads and short trips
Characteristics / Specifications
BT BOPT : BT LR 2.0
2000 kg
1 Capacity
2 Load Center 600 MM
3 Travel Center 5.4 Km / Hr
Step Less
85 MM
4 Speed Control
5 Height of Lowered Fork
6 Width across the forks
7 Fork Length
520 / 685 M
M
1150 MM
1410 MM
205 MM
Rationale for Selection
Considered best in the industry
8 Turning Radius
9 Lift Height
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14. Warehouse Construction & Material Handling Equipment
SCM SOLUTIONS
Process: Storage
Equipment: Slotted Angle Racks
Function
For ease of Storage of large and expensive books
Characteristics / Specifications
Slotted Angle Racks
1
2
3
4
5
6
7
8
9
Specifications of individual racks
Capacity per Loc
S.Angle height
125 kgs
98 inch
S.Angle Thickness (40 X 40 X 2) mm
Dimensions of Shelve Plates
Thickness of Shelve Plates
24" X 36"
1 mm
Support Angle both Sides (40 X 40 X 2) mm
No of Shelves per rack 5 Rationale for Selection
No of Shelve plates per rack
Anti rusting zincro made red oxide primer coating
6
Yes
To be used for unit picks & Putaway’s.
Double storied structure for optimum usage of
space.
10 S oving paint for better finish Yes
Main usage in modified area of Racking for
sequential method of picking for retail.
11 Nuts & Bolts ( coated with same paint specifications )
12 Corner support angle per rack
Galvanized -
8mm
16 nos
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15. Warehouse Construction & Material Handling Equipment
Process: Putaway & Picking
SCM SOLUTIONS
Equipment: Roof supported racking with integrated pallet stacker crane (Storage)
Function
Possible to build high racking structures for high density and high speed storage and retrieval of pallets
or mini-loads.
Characteristics / Specifications
Suitable for Automatic Storage and Retrieval System (ASRS) linked to Stacker cranes or other
automatic material handling equipment systems. Make :-NES
Rationale for Selection
Can easily operate Heavy-duty pallet/material
storage racks, and Dynamic Flow type with roof
supported stacker crane fitted with movable turrets.
The racking would be VNA type
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16. IT Systems: Warehouse Management System Overview
SCM SOLUTIONS
WMS activities / processes WMS Solutions
1. Inbound 7. Order picking
2. Dock / Unload
3. Receipt of goods
4. Create GRN
5. Putaway
8. Value-added services
(Kitting/Rework)
9. Packing line
10. Sorting Conveyers
11. Dispatch
6. Picklist Creation
12. Tracking
5
12 6
4
10
8 7
2
3
9
11
1
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17. IT Systems: Facility Management System Overview
SCM SOLUTIONS
Facilities Management
Hard Services Soft Services
Building Maintenance Catering and Vendin
g
Cleaning (daily)
Pest Control
Repairs and Handyman
(incl. Alarm Maintenance)
Electrical Services
Fixtures and Fittings
Heating
Security (Frisking of Labour
s)
Waste Management
Fixtures and Fittings
Furniture
Ventilation & Air Conditioning
Equipment Maintenance
Painting Health and Safety
Utilities
Asset Management
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18. IT Systems: SCEM* Providers Offer End-To-
End Visibility, Enabling the Near
- Real Time Management of Demand, Capacity and Supply Planning SCM SOLUTIONS
Supply
Planning
Demand
Planning
Extended Visibility
Capacity
Planning
Order
Manageme
nt
Outbound
Transportatio
n
Inbound
Transportatio
n
Suppliers Carriers Customers
Warehouse
Management
SCEM Solutions *supply chain event management
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19. IT Systems: Management Information System
SCM SOLUTIONS
Key Reports
• Performance Report
• Operations level monitoring
• Daily MIS reports
• Decision Points
Solutions
WMS & Facility Management Solutions have inbuilt functionality to release the
above reports. This can be customized as per requirement
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20. People
SCM SOLUTIONS
• Recruitment
– Recruitment is carried out at Regional & Local levels
–
Job Rotation of existing employees across the group & the continuous recruitment
provides
• Skilled manpower
• People with experience in Logistics & Supply Chain
• Capability to manage increased throughput
• Training
– Employees are trained during project phase
– Training as per SOP (Standard Operating Procedures)
– Periodic Training in line with QMS
– Refresher Training
–
Knowledge sharing on Best Practices across different industry verticals (being
managed by SCM as a 3PL Service Provider)
• Retention
– Dedicated people on company rolls
– Welfare Facilities
– Reward & Recognition schemes
– Growth opportunities across different verticals being managed by SCMSOL Logistics
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21. Performance Improvement & SLAs
SCM SOLUTIONS
SLAs
• Inbound
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Gate Entry/ Material Receipt Report- Same Day
External Inspection for returns only – 48 hours
Material Receipt confirmation to Consignor- Same Day
GRN for material received upto 1200 hrs (agreed throughput levels)- Same Day
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Storage, Inspection & Stock Verification
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Stocking & Tagging as per agreed norms
Book V/s. Physical Stock verification- net value basis- Accuracy- 99.95%
Picking & Dispatch
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Picking accuracy 99.35%
Delivery of order received till 1200 hrs.- Same Day
Rush order (@ 5% max of normal throughput levels)- to be executed in 2 hours
Orders received by 1200 hrs for booking @ Transporters – Same Day
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Reporting & MIS
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Dispatch intimation – next day after dispatch
POD Management
Submission of Accurate MIS as per agreed frequency
Customer Care SLAs as defined and agreed upon
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22. Components of Warehouse
SCM SOLUTIONS
• Heavy Duty racking
• Slotted angle racking
• High value store
• Chest storage
• Pigeon hole
• Test bench
• Open storage area
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23. SCM SOLUTIONS
THANK YOU………….
SCM SOLUTIONS PVT LTD
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