Understanding of the Case

Where we are Our Goal

Indian Market Leader with 37% MS Leaner supply chain with capacity
1800 units p.a. expansion
INR 480 crores 2800 units p.a. by 2020
Service contribution of INR 25 per INR 625 crores by 2020
INR 100 revenue Service contribution of INR 37 per
Challenged by incoming global INR 100 revenue
players Indigenization of critical parts
Scouting for a new OEM partner

Key Focus Areas

Extended Dealer
Market
and Service Network Leasing as an LOB
Availability
to business

Renowned Clients with Competitive Prices with

Exports as a driver
Multiple Businesses Latest Technology

Focus on
Warehouse Frugal Cost
Lean Supply
Capabilities Structure
Chain
 Analysis and Understanding
the Market and Various
Factors
Manufacturing
Factors

Distribution
Manufacturing
Logistics
Manufacturing
Psyche of
Manufacturing
Labor

Key Drivers Key Challenges

Tri-Lever Growth in % contribution to GDP Govt. focus on employability

from manufacturing

GST and growth in distribution High Cost of Capital

logistics
Distribution Psyche of
Logistics Labor
Global competitive practices Availability of labor

Lack of standardization of pallets

 Analysis and Understanding the Market and Various Factors
The focus of the GoI to target a growth
Manufacturing of 25% contribution to GDP from the
current 16%

Factors Category Share of CAGR

Warehousing Growth

Industry/Retail 55% 6%
Distribution
Agri- 15% 6%
Logistics Warehousing

Cold Storage 16% 10%

Manufacturing
Container 14% 20%
Warehousing

Lack of legislation regarding human

Tri- Psyche of labor for load lifting and lack of
Labor
Lever aspirations for low level labor

Key Drivers Key Challenges

Distribution Psyche Growth in % contribution to Government focus on
Logistics of Labor GDP from manufacturing employability

GST and growth in distribution High Cost of Capital

logistics
Availability of labor
Global competitive warehouse
practices Lack of standardization of
pallets
 Revenue Contribution and
Customer Segment Wise Analysis
Contribution to Revenue Industrial Segments Forecasted Growth

Key Insights:

3PL
Food &
Impact of Drivers Automobile (E commerce/ Warehousing Paper & Packaging
Beverages
FMCG)

Criticality

Uptime

Price Sensitivity
 Revenue Contribution and Customer Segment Wise Analysis

Industrial Segments Forecasted Growth

Automobile 10%
General Engineering
Paper and Packaging

3 PL
Pharmaceutical
Textile
Chemical
Retail

Key Insights:

Impact of Drivers Automobile Pharmaceutical Retail Warehousing

Criticality to Operations

Total Cost of Operations

Post Sales Service

Customer Relationship
 Competitor Mapping
Parameter

L M H L M H L M H
Technology superiority

Customization

Channel Distribution network

Touch points

Pricing

Portfolio depth

Brand Image

Source: Team Analysis

 SWOT
Service Technological competency
Reach Aesthetics
Service Network International presence
Trained man power Presence on digital platforms
Parts availability High fixed cost structure
Customer centric policies Brand recognition in international
Product offering market
Product portfolio Different levels of dealer maturity
Customized Solutions
Multi segment product offerings

Price
High brand recognition in domestic market
S W

Consolidation of warehouses post GST Entry of international brands

Growth in retail sector Struggle to maintain capacity with
Government support for infrastructure respect to market growth rate
development Price undercutting by competitors
Growth within ASEAN markets Increasing cost of labor
Shift in preference towards electric

trucks
Make in India
O T
Change in customer perspective;
auxiliary equipment to productivity
enhancer
Customers buying 100% spares from
OEM
 Dealer connects
To Client

Breakdowns
Service Request
Planned Registration
Maintenance Check clients
START Spare Parts coverage under STOP
Issue registered service contract
Service Executive Send service
Forklift Notified engineer within FRT
Maintenance Issue Dealer Notified Place PO

Service Delivered
Connect to
Call Centre

Owner

Service
Executive

Management

Godrej Dealer

Uplift

Shop floor MHE

 Fleet
Usage Management
Statistics Diagnostics

Cloud
Database

Mobile Interface
Client Dealer/ Dashboard
Service Executive
IoT Enabled Forklift
Benefits and Challenges

Benefits Challenges

10 10

Uniform Service Experience

Additional Investment
Minimize Client Hassle

Problem resolution within FRT Training the Dealers

Effective use of service executives

Retrofitting the existing
forklifts with the new system
Reduced Downtime

Insights in customer utility patterns

Increased contribution of
service towards revenue
0 0
 Requirement gathering
CROSS-
STANDARDIZATION SELLING
&
PALLETIZATION
Customized offering

Sales pitch

Project execution & Monitoring

Service by respective divisions

HUL, GSK & Johnson & Johnson are consolidating their warehouses
GST
The new facilities will cover about 500000 sq. feet of space
DHL has made investments to double its warehousing space
 Suresh is the owner of He does not have the
an MSME who needs a capital to buy a forklift
forklift to address the and needs someone to
peak in operations for a rent a forklift on short
short period notice

Dial-A-Forklift Suresh gets on to the

Dial-A-Forklift
USSD based mobile
A call from the service to avail the
*XXXX# dealer/company is service
arranged to address his
needs

Suresh uses the forklift

and saves money,
time and effort.
A dealer/company His experience is
representative recorded pertaining to
completes formalities of the service
the rental agreement

What is it Target Customers Benefits

A mobile USSD number based 1. Ultra short lease (< 1 month) 1. Catering to a growing volume based segment
rental service for forklifts for 2. Low volume requirement 2. Additional revenue opportunities for dealers
ultra short rental periods 3. Immediate requirement 3. Rolling stock at dealerships
4. MSME/SMSE segments 4. First mover advantage
 Godrej Uplift A mobile service van

Uplift

Benefits Forecasted
Challenges Faced
1.More complaints addressed per trip/day
1.Complaints serviced per trip/day
2.Non-dependence on client end toolkits
2.Inability to carry extensive toolkits
3.More resolutions during FRT
3.Complaints resolved in first visit
4.Reduced dealer network and increase
4.Skill deployment
coverage per dealer
5.Strategic Push for AMCs/CMCs
 Our Strategic Alternatives

Win through Service

and Spares

Reduction of the
Costing Structure Focus on Iran and
ASEAN

Target SMEs and Be a Complete

Hiring Business Solution provider for
growth warehousing
 Our Major Recommendations

Win through
Service and
Spares

Be a Complete
Target SMEs and
Solution provider
Hiring Business
for warehousing
growth