Welcome

To
Presentation
By

D.V. Vora
Sr.General Manager & Head
- Logistics & Supply Chain
Email : dvv@godrej.com

GODREJ & BOYCE MFG.CO.LTD.,

Vikhroli

1
 SUPPLY CHAIN IN
CONSUMER DURABLES

2
 SUPPLY CHAIN PROCESS - CONSUMER DURABLES
For Made To Stock

Branch Forecast Consolidation at Mfg Plant

H.O.

Stock

Customer Despatch Allotment

Warehouse
3
BEST PRACTICES

4
Sea Transportation MULTIMODAL TRANSPORTATION

Designed Multi Mode ( ROAD + SEA + ROAD) movement through Shipping Line

Deferment of additional WH need by halting containers at ICD
T

Mohali
SI

Benefits
AN
TR
YS
DA

Increase Vehicle Availability

2

Halting at ICD and dispatch from ICD

Mundra as per market requirement
Kandla

No Need of Large WH space ( Red’n
Mumbai in Inv of 15 days)

Due to Container Movement - Damage
4D

reduction in transportation
AY
ST
RA
NS
IT

V Kochi
(Av
g)

5
Rail Transportation MULTIMODAL TRANSPORTATION

Movement of Full Rail Rack from Mohali factory to Kolkatta

Loading in Unloading Container Unloading

Container On Railway Rack At Rly W/H

Mohali
Mohali Shalimar
Shalimar
Station
Station Station
Station

 Rake loads

- reduce dependency on traditional transportation

- vehicles available were used for other locations

- no untoward hike on freight is demanded by transporters

 Leased wagon

- increases reliability on dispatches

- lower transit time leading to reduction in inventory

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 DIRECT TO TRADE
Direct to trade
Immense SCM Opportunity.

Factory Stock Pt Dealer

Most suitable for Major Distributor supply who need Full Truck Loads.

Reduces Inventory at W/H level.

Reduces handling and operational cost.

Improve quality of service and customer satisfaction.

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 MULTIPOINT PICKING ~ DELIVERY
Fact-1 Fact-2 Fact-3

Dealer

Dealer
Fact

Eliminate extra W/H requirement.

Dealer

Reduce cost

Faster Delivery

Dealer

Fact-1 Fact-2 Fact-3

Dealer-1 Dealer-2 Dealer-3

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 MOVEMENT CONTROL ~ GPS
Central
Server

GPS
signal
to locate Internet
GSM sends
Remote Assistance
location /
speed info
to Server
Mobile

Maps / Navigation

Asset with Diagnostics and

GPS Reports Vehicle Owner /
Hardware Consignor / Consignee
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 HUB-N-SPOKE NETWORK

Features of a Hub-N-Spoke Network

Decreased Inventory cost

• Inventory pooling benefit - Reduction in safety stock due to better forecasting at the
aggregate hub level
• Inventory Postponement - If demand can be fulfilled from the hub within the given
service time, then branch stock can be eliminated. This also results in reduced
handling at the hub (since the material is only flowing-through the branch)
Decreased Warehouse space cost
• Due to the reduction in overall inventory there is a reduction in space requirement in
the network
Increased Handling cost
• Product gets handled twice - once at the hub and once at the spoke
Increased transportation cost
• A single move from supplier to spoke is broken into two moves - supplier to hub and
then from hub to spoke. This results in increased transportation cost.
• A reduction in part of the transportation costs is possible if there is an opportunity to
consolidate loads into hub

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 HUB-N-SPOKE NETWORK

Factors that drive a Hub-N-Spoke Network

Value to Size ratio
• A high value and small size product is likely to benefit from the hub-n-spoke structure.
High value results in a higher savings in inventory costs whereas a low size results in a
smaller increase in the logistics cost. Thus, on the whole there is a benefit.
Service Times that allow postponement
• Flexibility in service time allows demand fulfillment directly from the hub. This would
drive large reduction in inventory by eliminating inventory at the spoke.
• With stringent service times, the overall inventory levels do not reduce by much and
sometimes can even increase in a hub-n-spoke network structure.
Inventory Pooling
• Demand variability may be lesser at the Hub compared to the spoke, as the variability
at the spokes might offset each other. This would result in lower variability at the Hub.
The higher the reduction in this demand variability at the Hub, the greater the
inventory pooling benefit.

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NATURAL LIGHTING - GREEN WAREHOUSE

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TURBO VENTILATOR - GREEN WAREHOUSE

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5 S PRACTICES

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 CHALLENGES IN
CONSUMER DURABLES
SUPPLY CHAIN

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 SALES VOLUME ANNUAL

100000

90000

80000

70000

60000
week4
50000 week3
week2
40000
week1
30000

20000

10000

0
A M J J A S O N D J F M
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 SALES VOLUME ( Apr to Mar )

60000
50000
40000 week1
week2
30000
week3
20000
week4
10000
0 week1
A M J J A S O N D J F M

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 TOTAL FREIGHT COST MOVEMENT
500 60

460 50

41
420 37.57 37.84 40

30.00

GAP WIDENING
380 27.88 30
24.38
20.71 361
340 20
339 333 330
328
314 307
300 10
01-02 02-03 03-04 04-05 05-06 06-07 07-08

Total Freight / Unit Average Diesel Price / Ltr

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 TYPE OF VEHICLES USED

Containerized 65’ Trailer Containerized 45’ Trailer Containerized 30’ Vehicle

Used for heavy movement Used for Combination of weight and volume
Used for Volumetric movement

Double Axle Vehicle LCV for Secondary 9 Tonner Punjab Body Vehicle
Used for weight movement upto 16 Tonnes
For short route despatches Used for movement by weight

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 WAREHOUSING
PRODUCTS RANGE

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 PRODUCTS RANGE

Multiflex – Light Duty Shelving Carton flow

X span – Long span shelving Cable Drum Storage
Mobile Shelving Mezzanine Floors
Pallet Racking Library Stacks.
Workshop Equipment
Drive-In / Drive- Thru systems
Vertical Carousals
Gravity Flow
Kardex Shuttle
Cantilever
Automatic Storage and Retrieval
Systems
Consultnacy
Special Solutions

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LIGHT DUTY SHELVING

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HEAVY DUTY SHELVING

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LIGHT DUTY MOBILE

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SELECTIVE PALLET RACKING

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DRIVE IN/THRU PALLET RACKING

DRIVE IN DRIVE IN
WITH PALLET WITH MHE

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DRIVE IN / GRAVITY FLOW

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MEZZANINE

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CARTON FLOW

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VERTICAL CAROUSEL/SHUTTLE

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 WHAT IS AS/RS

AUTOMATED STORAGE & RETRIEVAL SYSTEM IS A

CUSTOMISED COMBINATION OF

GODREJ-EFACECAUTOMATION
AUTOMATION&ROBOTICS LTD.
WAREHOUSE
AREHOUSEMANAGEMENTSOFTWARE.

DECserver
Micro VAX Micro VAX

Type DECserver
text

Type
Visolux text

DECserver
Visolux PLC

Modem
BarCode
Stacker Crane

WAREHOUSE
INTELLIGENT HI- RISE STORAGE MANAGEMENT
EQUIPMENT SYSTEM SYSTEM
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 COMPARISON OF VARIOUS HANDLING EQUIPMENTS

The Stacker Crane meets all desirable features of an MHE – It goes tall , very
narrow aisle, no deration, no turning, etc.
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Thank You

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