Mahindra Logistics

BACKGROUND

The Company is one of India’s leading integrated steel manufacturers with a capacity of 18 Metric Tonnes Per Annum (MTPA). It is one of the fastest growing companies in India with a footprint in over 100 countries. With state-of-the-art manufacturing facilities located in Karnataka, Tamil Nadu and Maharashtra, it is recognized for its innovation and quality. The company offers a Hot Rolled, Cold Rolled, Bare & Pre-painted Galvanized & Galvalume, TMT Rebars, Wire Rods and Special Steel. India has always been a significant steel market. Various forecasts have raised expectations of the steel industry and investors about growth prospects of the industry. Steel being a high-volume business, on time execution and hassle-free operations is utmost important. The far-reaching export of steel products to some 100+ countries around the world and the need for input goods make the steel industry one of largest users of transport services by road, rail and sea. About one half of steel manufactured is carried by train and only slightly less by ship. The remainder is transported by truck. In addition to this are all the transport operations that occur between and within the various production sites. These operations take place mainly by road. To make it possible for steel companies to compete on the world market, the availability of a properly functioning, efficient and competitive transportation management is necessary.

BUSINESS SOLUTIONS

MLL took over the operations on an ‘As Is’ basis and served as the single point of contact. The challenge was not only to recover their own operational cost but also to deliver a cost efficient and seamless service, creating a win-win situation for both the parties.

MLL set up a Transport Desk Solution to deliver operational excellency. Multiple Transporters were inducted into the MLL Business Partners community to create a pool of vehicles available at easy disposal. Best practices in Supply Chain Management and Logistics were implemented and a Reward Management System was established to measure the performance of Transporters/Business Partners with set SLAs & KPIs to ensure timely dispatch and TAT.

Daily and weekly reports ensured complete end-to-end visibility of operations and helped in streamlining processes, bringing cost efficiency and operational excellence.

CSR initiatives were undertaken to boost the morale and confidence of the drivers and support staff engaged with the project. Drivers Passport - a unique initiative- was undertaken to educate drivers on important parameters of operations like: vehicle maintenance, emergency contacts and safety tips.

The Passport also acts as an identity and ready reference document. Efforts were made to increase working conditions along with sessions on: TAT, importance of safe driving, use of safety equipment etc. to improve driver confidence and performance.

MLL TRANSPORT SOLUTION

  • Single solution Office/Transport desk at site
  • Pool of Transporters
  • Best practices in SCM and logistics
  • Control Tower & Transport Management System
  • Reward Management CSR Activities for Driver Welfare

 

BUSINESS BENEFITS

The MLL approach to operations and resource management aided in achieving cost efficiency and aiding in scaling the operation from handling 150000MT per month to 250000MT per month with zero staff addition. In-plant TAT reduced by 30%. TAT for TMT bar reduced from 18 hours to 12 hours and that of coil from 9 hours to 6 hours. Over a period of 2 years MLL could transfer a substantial amount of cash savings to the client along with other intangible benefits through its operations. This was one of a kind operation successfully managed by MLL.

  • Turn Around Time reduced by 30% TMT bar 18 hours to 12. Coil 9 hours to 6 hours
  • Scale of Operations grew 2.5 times
  • On time delivery grew 11%
  • Zone Management - Optimize Space Utilisation