INNOVATION IN LOGISTICS

The key to success

Col. SP Singh

OverviewIntroduction to Logistics

What is Innovation?

Integrated Logistics Services

Case Study 1

Case Study 2

Case Study 3

Introduction to LogisticsImportance of logistics in an organization

Not a cost centre, but a competitive advantage

Logistics Outsourcing (Contract Logistics, Distribution)

U.S. $15 Billion industry in India

Only 9- 11% of the logistics sector is organized (the

rest being unorganized)

Annual growth rate 10-14%

What is Innovation?

“To do things differently”

For an initiative to qualify for being classified as an

“Innovation in Logistics” it has to pass three litmus

tests-Result in better system and processes

Improved efficiency

Result in cost reduction

Integrated Logistics Services

Plant W/M (RM) Plant W/M (FG)

Primary Transport Secondary Transport

Depots Dealer/OEM'sRaw Material

Tertiary Transport

FF Outside India

Within India

Distribution

Case Study - 1

TATA - Cummins

Case Study - 1TATA – Cummins Situation 15 Suppliers in Pune

Independently supplying items to Tata Cummins

Delays in deliveries

Cascading effect on assembly line at Jamshedpur

Costly plant shutdowns leading to loss of production and

thus, revenue

Case Study - 1Innovative Initiative by SembCorp team Collection schedule worked out with each supplier at

Pune

SembCorp vehicle collected consignments in a “Milk

Run”

Load reworked as per “Assembly Line” by 1900 hrs.,

same evening

Email intimation to everyone concerned

Case Study - 1Benefits Guess work on delivery time- thing of the past!

Savings in cost

Everyone fully aware of status of material at all times

Smooth functioning of the assembly line

Case Study - 2

North East DispatchesFMCG companies

Case Study - 2Situation Total uncertain situation

Stock outs at Depots in the Eastern Region of

companies like Colgate, P&G, Godrej

Payment of Bodo Tax en - route

Loss of sales

Case Study - 2Innovative Initiative by SembCorp team Hiring of VPU

Combining the load of P&G, Colgate & Godrej

Attaching it behind Dadar - Guwahati Express

Third day delivery at Guwahati

Case Study - 2Benefits Uncertainty of deliveries- eliminated

Cost reduction- No Bodo Tax

No more stock out situation at depots

Boost in Sales

Case Study - 3

Reliance RetailCentral India (Indore)

Case Study - 3Situation Multiple deliveries to stores from the Mother Warehouse

Items getting mixed up

Damage to Items

Regular Returns to the Mother warehouse

Loss of Sales at various stores

Case Study - 3Innovative Initiative by Reliance Logistics team Modifying a container with hooks

Placing partition net within the container

Segregating the loads store- wise

Case Study - 3Fixing Net In Trucks - Avoiding Wrong

Deliveries & Damages

Case Study - 3Benefits Clear segregation of items store wise

All items delivered “intact”- as handed over by the

Warehouse

Maximum SKUs available with all stores

Boost in sales at stores

Case Study - 3

A Freshness Initiative by the Logistics Team

Case Study - 3Water Sprinkler- For freshness

Thank You

Any Questions?