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?