Consolidation of Warehouses and efficient integration of superior technology resulted in improved efficiency and reduction of costs for a telecom giant.
How to turn 9 retail IT challenges into 9 business opportunities
Case Study: Streamlining supply chain for a telecom giant
1. Consolidation of warehouses and efficient integration of
superior technology resulted into improved efficiency and
reduction of costs for a telecom giant.
2. 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 supply chain, planning and timing the components
availability 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.
BACKGROUND
3. BUSINESS CHALLENGE
• With introduction of GST, it
was essential for the
company to optimize their
distribution network.
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. MLL looked
at 3 main aspects to increase the efficiency of Supply
Chain Management:
• 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.
4. LOCATIONS:
MLL 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.
5. • 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 & reduction of cost. The inventory cycle was reduced significantly from 45 days to 30 days at
Hub and to 7 days at Spoke
INVENTORYWith the evolution of logistics, technology plays a crucial role. At MLL, 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
6. TRANSPORTATION
• 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 360º 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.
Centralised Control Tower - 24/7 Helpdesk Support
Vehicle Tracking - 1. GPS/Non GPS Tracking
2. Track Vehicle movement and route
Exception Management
- Enhanced visibility for decision making
Data Analytics - 1. Performance Analysis.
2. Close Monitoring
7. Value added and customized services were undertaken as part of the project
which included complex & intricate services like kitting and packing of
antennas.
VALUE ADDED
SERVICE
• 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 360º 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.