Mahindra & Mahindra Logistics

8/8/2019 Mahindra & Mahindra Logistics

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MAHINDRA & MAHINDRA Ltd

Project Topics:

1. To prove and calculate monetary loss due to CFT billing pattern through real time datacapturing.

2. To calculate monetary saving by changing ex-works vendors from OM Logistics to free

delivery through alternate transporter.

Products are the blood of manufacturers. Production targets can be met, only if the raw materialsare delivered in time. Hence, inbound logistics represent s one of the major business processes in

production planning. This process starts with the creation of a purchase order by the SCMdepartment and ends with the store receiving the consignment. Distortion in this process hampers

the production process. Lead time for the entire inbound process is a sum of vendor response,transit and internal lead times where, internal lead time is the time taken by the plant to complete

all documentation, unloading, quality check and finally placing the material in the store readyfor use.

Once the vehicle arrives at the plant gate for unloading, the documents that are to be checked at

the material gate are Invoice, Road Permit, LR copy. Failing to submit any of these documents or

mismatch in documents results in delay of production process.

Some of the findings that delay the inbound operations were:

y Delay in unloading the vehicle as documents are missing/ not up to date.y Lower Retention rate of documentation staffy Availability of dock space.y Repetitive movement of vehicle between docks increasing the unloading timey Quality issue (especially packaging) of the consignment.y Lack of hand pallets at unloading docky Availability of supervisor during the time of unloadingy Non availability of fork lifter for immediate loading of empties

After detailed study and analysis, the solutions that were proposed are as follows:

y Transporters should ensure that the documents of the material are with the driver at thetime of reporting and are up to date.

y Permanent staff should be made available for documentation, because every time a newperson come the time increases by 30-60 sec.


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y Vehicles which are not being unloaded should be removed from dock immediately toallow the unloading of another vehicle meanwhile dock should be cleared of all empties.

y Loading of materials should be done in a systematic manner such as, Bolero material infront and Alfa material at the back so that material of one dock can be unloaded at a

single time.y Vendor should send a photograph of loaded truck so that it acts as a proof about the

condition of the material at dispatch

y Increasing the no. of hand pallets available at each docky In order to reduce the turnaround time of the truck, supervisor should be made available

at the time of unloading.

y A track upon the fork lifter should be kept. The loading of empties should be given highpriority, the fork lifters should be immediately called for loading of the empties on to the

trucks. When such urgency occurs stackers, if possible, can be used to complete the work

being done by the fork lifters in the shade.We have calculated the monetary loss for M&M, due to CFT billing pattern and have derived an

alternative billing pattern to minimize the losses for the consignee. The alternate process that was

suggested is as follows:

1. A Hub Warehouse/Stores is taken on lease nearNasik by M&M.2. Suppliers fromNasik, Pune, and Mumbai supply CFT parts to Hub Warehouse inNasik.3. M&M is responsible for unloading goods from suppliers truck, consolidating them and

loading them into LSPs truck.4. All the material handling inside the hub warehouse is taken care by M&M.5. From Nasik Hub Warehouse, LSP takes the responsibility of delivering the goods to

Haridwar Plant.

6. Documentation will be done by LSP Agent at the Hub warehouse.7. Cross checking of invoice is done in the hub warehouse to eliminate anomalies.8. Per truck billing is done by LSP even for CFT parts.

Advantages for M&M, by following this pattern:

1. Instead of CFT billing, per truck billing is done for CFT parts.2. Better control over proceedings like space optimization, unitization, delivery of priority

material on time etc.

3. Logistical Cost Savings.4. Reduction in discrepancies.5. Max. Logistical Cost saving for Bolero, as all the CFT parts come from Nasik.

For spare parts coming from southern parts of India, EX-Works delivery is being practiced by

Mahindra. But by changing from EX-Works to Free Delivery, consignee has the following

advantages:


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y Consignor delivers the goods to the consignee at the consignees place.y Risk borne by the consignor till the material reaches consignee.y Lesser responsibility on the buyer than the supplier.y Monetary savings can be achieved.y

Consignor being an expert in material handling gives an edge in consolidating the lot sizebeing transported.

Learning with M&M, has given us an immense knowledge on inbound operations in a

manufacturing facility, flow of internal documentation process, warehouse practices and billing

pattern followed by the logistics service providers.

Documents

Mahindra & Mahindra Logistics