LOGISTICS MANAGEMENT

GROUP NO: 08

TOPIC: 3PL AND SUPPLY CHAIN MANAGEMENT WITH REFERENCE TO

MAHINDRA & MAHINDRA LTD

GROUP MEMBERS 

FEBIN PHILIPOSE184

VIJETH SHETTY161

ROSHNI PEHERWAR130

HIRAL PASAD116

PAWAN PARWANI115

YOGESH SHARMA159

NAYANA K.S. 149

GANESH KHAIRE193

JALAJ PASOLI117

SHRADDHA PATEL118

HISTORY

Began On 2 nd OCTOBER 1945.

MAHINDRA Brothers Join HandsWith GHULAM MOHAMMAD.

GHULAM MOHAMMAD migrated to PAKISTAN.

Today M&M has evovled into a giant group.

Today M&M ltd. Is $800 million company, employing some 12,000 people.

The company started manufacturing commercial vehicles in 1945. and thereafter company became the world’s 6th largest medium and heavy commercial vehicle manufacturer.

It is the second largest in passenger vehicles market

Introduction of Mahindra & Mahindra Limited

The division's launch of high-performance tractors played a

vital role in the mechanization of Indian agriculture, directly impacting the lives of some 6 million Indian farmers.

Later it becomes 3rd largest producer of the tractors in the world.

The company has been market leader in FARM EQUIPMENT machinery in the highly competitive INDIAN market since 1986.

FARM EQUIPMENT SECTOR

Third  party logistics (3PL) is the employment  of outside companies whose expertise is in handling a firms logistical processes .

3PL has benefited firms in terms of gaining competitive advantage, expertise to do their job more effectively, better process and resources to handle operations and logistics cost savings.

Mahindra & Mahindra has adopted Om Logistics for its 3PL.

Introduction of 3PL

Om Logistics Ltd., the flagship company of Om Group has been instrumental in providing innovative and value added solutions for Indian Corporate and Multinationals. Through its innovative and cost saving methods, Om Logistics Ltd. has consistently added value for its customers, which can be complimented by our competence to take the driving seat for generating maximum air cargo in India. It has been dealing with corporate, multinational automobile industry and has been pioneer in transportation, warehousing and logistics support to the sector

Introduction of Om Logistics

Cost saving/cost optimization. For large coverage. For more professional and scientific approach to logistical problems. Techniques used. Different modes of transportation. Supervision. Insurance. Obligation.

Relation between Om Logistics & M&M

When the Indian market opened in the mid-1990s, the global players came to India to compete against M&M,” “M&M felt that, to really compete and win, they needed to build up their skills and benchmark their processes against these global leaders, becoming best than all at managing the business.They needed a solution that could link all their plants to provide an integrated view and help them decide that which plant should make what, when, and for which market in order to optimize total costs and operational efficiency and respond quickly to customer needs.”

Lack of Information Flow

Mahindra & Mahindra was SAP’s first supply-chain implementation in the Asia-Pacific region.

The solution enables a pull-based replenishment system that optimizes logistics and manufacturing operations which helps M&M to improve margins and reduce costs while enabling it to respond quickly to customer needs.

Introduction of SAP

POINTS BEFORE IMPLEMENTING SAP

AFTER IMPLEMENTING SAP

(CURRENT)

No. of units manufactured

Appx. 80,000 units p.a.

Appx. 1,50,000 units p.a.

Replenishment system

Push based Pull based

Lead time 52 days 19 days

Dealer inventory 6000 tractors 4000 tractors

Company stock 3500 2000

IMPLICATIONS OF IMPLEMENTATION OF SAP

M&M Emerging as a Market Leader

RECOMMENDATIONS To increase number of staff- lack of skill labour, lack of training facility, employ skill labour who has good expierience.

Material handling techniques- poor material handling techniques theirfore more mechanize material handling equipments should be use

Lack of infrasturctural facilities- nearly 25% of the area is wasted due to poor infrastuctural facilities

ack of flexibility- The infrasturcture of the space utilisation was not in the hands of Om logistics, so they should given the right to take decision to make the business simple.