Mahindra Logistics

BACKGROUND

Headquartered in Pune, Maharashtra, the Volkswagen Group in India is represented by five brands: SKODA, Volkswagen, Audi, Porsche and Lamborghini. The Indian journey began with the launch of SKODA in 2001. Audi and Volkswagen entered in 2007, while Lamborghini and Porsche were introduced in 2012. Today, the Group upholds its mantle of superior engineering, working seamlessly to manufacture the world's most loved cars. Volkswagen introduced to India one-of-the-best German automotive technologies. Every Volkswagen plying on the Indian roads since then, has been built at Volkswagen India plant, situated in the industrial hub of Chakan, Pune. It is here, at this state-of-the-art assembly plant, that they breathe life into every Volkswagen. The plant has a production capacity of up to 200,000 vehicles a year in a full three shift system. The Pune plant is one of the most modern in the Volkswagen Group. It has a high level of vertical integration and a large share of local suppliers. The facility is the only production plant operated by a German automaker in India that covers the entire production process, from press shop through body shop and paint shop to final assembly.

BUSINESS CHALLENGES

  • Huge Absenteeism: Huge absenteeism of contract labors was a major concern as it heavily impacted the In-plant operations
  • No improvement in the process leading to low productivity: Process improvement and control plans to support in-plant logistics as required by the company was not effectively met by the outsourced partner, which led to low productivity.

The group had outsourced its In-plant logistics to a 3PL and faced multiple issues with its current logistics partner.  

Intricately analyzing the need for a strong and experienced in-plant logistics partner, the company floated an RFQ to identify a partner who could meet all its requirement.

BUSINESS SOLUTIONS

The proposal

Our proposal was cost-effective and focused on productivity enhancement. Two important aspects of the project proposal were

  • The calculation of the service charges based on per car produced
  • An opportunity for us to invest more than INR 150 million in material handling equipment. 

The account was attained after over 6 months of RFQ discussions and client visits to our operating sites for us to showcase our experience and satisfy their queries. Our expertise and experience achieved a new dimension when the Group outsourced their in-plant logistics to an Indian 3PL player, Mahindra Logistics, for the first time ever.

Managing Human Resource and Industrial Relations: -

Challenges are a part of every project. With the commencement of Operations, obstacles came in and so did the strength to surpass them. 

  • The set up was created by acquiring over 450 employees from the previous Logistic Service Provider with the support of the customer. 
  • A Help Desk was made operational for a period of 15 days for seamless transfer of these employees.
  • Absolute precision in planning ensured Zero Man days or Man hours are lost during the transition. 
  • The tedious process of verifying documents, identification and allocation of suitable roles based on experience and skillset was remarkable managed. 

Inventory Control and Operations successfully commenced on the same midnight the previous logistics service provider handed over their operations.

BUSINESS BENEFITS

Reaching this destination was challenging, but not impossible. MLL not only managed the KPIs efficiently but also outperformed the targets given by the client.

  • Absenteeism ratio reduced by almost 50% 
  • Line downtime was reduced from 0.05 minutes per car to 0.01 minute per car
  • The number of internal transport damage dropped from 6/month to 0.2/month.
  • 100 % On-time JIT call performance 
  • Achieved 99.99% Inventory accuracy 
  • Repacking achieved 100% performance.

All of this paved the way for a low Turn Around Time (TAT), from 60 minutes to 33 minutes. The hard work helped us achieve much more than just the targets – we won several accolades and awards from the customers for our exceptional 5S performance, clearing all client and ISO audits.

Accolades Bestowed On Us

MLL was certified with ISO 9001:2008 certificate for its operations and successfully processed all audits, inventory audits with the help of 11 certified quality auditors. What’s more, we set a record of 90% score in the customer’s global audit as compared to 88% ‘worldwide’. By improving the safety measures at the plant, we were also able to achieve 430 man-days without any major accident. That’s how, we at MLL, learned to set global benchmarks in handling in-plant logistics.

TESTIMONIALS

  • “I won’t forget the day when the transition of 450 people from our previous LSP to Mahindra Logistics took place without a single second of downtime!” 
     - Shailendra Bajaj, HOD, Operative Logistics, India
  • “Mahindra Logistics has set some benchmarks for other organizations of our global group like their inventory targets. Their receiving activity is one of the best and has been approved by our global auditor as well.” 
    - Devendra Karpe, Plant Operations Manager