Supply chain management (SCM) in the Telecommunications industry today needs reliable design and versatile tools to control material flow. The objective for an efficient Supply Chain is reducing inventory, lead times and related costs to assure reliable and on-time deliveries. Modern telecommunication warehouses/plants work with multiple and varied component suppliers. Component lead times could vary from few hours to several weeks. To minimize component buffers and tied-up capital in supply chain, planning and timing the components availability is of great importance. Improving real time visibility and information in operation therefore becomes critical. The complexity in such operations only grows when a company operates in a large market with a diverse geographical presence.
Mahindra Logistics analyzed the entire supply chain of the organization. We realized that it was important to create a plan not just from an operational point of view but also consider a strategic point of view. MLL looked at 3 main aspects to increase the efficiency of Supply Chain Management:
MLL analyzed the current distribution network and suggested replacing the current supply chain model with the Hub & Spoke model to optimize and bring in operational efficiencies. The geographic placement of facilities and warehouses was the first step in creating an effective supply chain. With the introduction of GST, a Hub & Spoke model proved to be the most efficient.
Multiple simulations were made on a real-time basis to select the best available option which led to consolidation and reduction of warehouses from 7 to 5, categorized as 1 Hub, 3 Spokes and 2 Cross Docks.
With the evolution of logistics, technology plays a crucial role. At MLL, technology is an important driver in deriving efficient and effective solutions for all our customers.
MLL as a single service provider for all the Supply Chain needs simplified and streamlined operations for them that resulted into improved lead times and performance. We demonstrated consistent improvements, showed flexibility, promised inventory ownership and stock accuracy matching the demand signals, thereby boosting the supply chain efficiency. This journey is a strong testimony of MLL commitment and success in a highly competitive and price sensitive market.
Value-added and customized services were undertaken as part of the project which included complex & intricate services like kitting and packing of antennas.