PROJECT REPORT

ON

“STUDY OF WAREHOUSE OPERATIONS IN

MAHINDRA LOGISTICS LIMITED”

Submitted by
by
RAHUL. A
Register No: 154LS0004
In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

(LOGISTICS AND SUPPLY CHAIN MANAGEMENT)

GKM INSTITUTE OF MARINE SCIENCES AND TECHNOLOGY

CHENNAI-600 063

Affiliated to

BHARATHIAR UNIVERSITY
COIMBATORE 641 046

June 2017

1
 BONAFIDE CERTIFICATE

Certified that this project report titled “STUDY OF WAREHOUSE OPERATIONS IN

MAHINDRA LOGISTICS LIMITED” is the bonafide work of“RAHUL.A
(154LS0004)”who carried out the research under my supervision. Certified further, that
to the best of my knowledge the work reported that does not form part of any other
project report or dissertation on the basis of which a degree or award was conferred on
an earlier occasion on this for any other candidate.

Supervisor Head of the Department

Submitted to project and viva held on _____________________

Internal Examiner External Examiner

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 DECLARATION

I, Rahul A the student of GKM INSTITUTE OF MARINE SCIENCES AND

TECHNOLOGY hereby assure that, I have completed this project STUDY OF
WAREHOUSE OPERATIONS IN MAHINDRA LOGISTICS LIMITED in the year
2017, it is the record of original work done by me, under the guidance of Mrs.
KOPPISETTI DURGABHAVANI (MBA) Department of management studies. It is
assured that this study have not been submitted to any other university for the
award of MBA degree.

Place: Your Sincerely

Date: (Rahul. A)

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 ACKNOWLEDGEMENT
I express my sincere gratitude to the following people with whose help and
encouragement I have completed the project successfully.

First of all I would like to express my deep gratitude to our beloved chairman
Dr.G.KATHAMUTTU for his kind encouragement and blessings.

I express my sincere gratitude to Dr.B.SUJATHA BALASUBRAMANIAM, CEO

who has always been a source of inspiration to us and for the continuous support.

I would like to express my sincere gratitude to Dr.K.P.JAGANNATHAN, Director

who is the key motivator for all the students to perform well in the academics and
research works.

I would also like to thank Captain SURESH N.V, who has always helped us
whenever we approached them during the course of our project.

My sincere gratitude and thanks to our beloved and respected Mrs.KOPPISETTI

DURGABHAVANI (MBA) Head of the Department of Management studies for her
guidance and motivation throughout the internship.

I would like to thank the Entire Organization and Employees of Mahindra Logistics
Ltd Chennai Division, Specifically Mr. Sajeesh Karunakaran [AGM] and his team in
Warehousing Department for their enthusiastic involvement, invaluable guidance,
constant supervision, suggestion and showing immense importance to my Training.

I extend my profound thanks to my guide Mrs.KOPISETTI DURGABHAVANI

(MBA) Head of the department of Management studies.

I wish to thank other Teaching and Non-Teaching staff members’ friends for the
support and guidance. I would also like to thank our parents who stood by me,
satisfying all my needs towards the fine success of my project.

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 Abstract
Mahindra Logistics entered the booming logistics industry in 2000 as a captive entity servicing
the needs of our rapidly growing Automotive and Farm sectors. They branched out and moved
beyond a decade ago. Today, Mahindra Logistics is a stand-alone company that services over
200 large corporate customers by deploying 25,000 vehicles a month, and five million square
feet of warehouse space. They are today India's leading integrated third party logistics service
brand, with 13 offices, over 88 operating locations across the country, and revenues in excess of
INR 17500 million.

They manage close to 5 million sq. ft. of warehouse space at multiple locations across the
country. These include a mix of built-to-suit, dedicated and multi-user warehouses. They are
also adept in handing the existing warehouses of customers to generate optimal efficiencies in
them. Their warehouse operations use latest and proprietary technologies for improving
productivity and increasing efficiency. Mahindra’s system runs on a structured process flow for
each sub operation and for tracking metrics. Technologies like Clean Sheet for process wise
manpower requirement, layout optimizer for optimizing layouts, Knap Sack for optimal storage
pattern analysis and Customized MHEs etc are used on a regular basis across the network

Warehouses are usually large plain buildings used for commercial purposes for storage of
goods and are commonly used by exporters, importers, wholesalers, manufacturers etc.
Warehouses are crucial components of most modern supply chains and are likely to be involved
in various stages of the sourcing, production and distribution of goods, from the handling of
raw materials and work-in-progress through to finished products. This study was done based
on the data provided by Mahindra Logistics Reporting team of an achievement they made on a
3rd party contracted warehouse in Hyderabad. Warehouse management is concerned with
ensuring that all the activities involved in warehousing are carried out efficiently and effectively
by seeking to eliminate waste from activities that add cost to the supply chain, while
maximizing those areas that add value. Mahindra Logistics has developed and implemented its
own management concepts in their Client’s Warehouse in order for it to run smoothly and
accomplish the vision, goals and objectives it has set forth by their client. The four functions or
types of activities of warehouse management are: planning, organizing, leading and controlling.
This study is designed to explore the overall picture of warehouse management practice at
Mahindra Logistics Limited warehouses and help identify the scope of improvement

 Contents:

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Contents Page No

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Introduction to Logistics 7
Importance of the Study 10
Industry Overview 11
Company Profile- The Group 15
Mahindra Logistics Limited 17
Objective of the Study 29
Scope of the Study 30
Limitations of the Study 30
Research Methodology 31
Data Collection 32
Ware housing 33
Functions of Warehousing 37
Mahindra's Warehouse 42
Case Study 62
Conclusion 68
Reference 69

Flow Charts &Tables Page No

Logistics activities 9
Warehouse Categories 46
Manpower in Chennai Warehouse 59
Organizational Chart 59
Performance Analysis 63
Problems and Causes 64
Performance post 2012 67

Pictorial Representations Page No

Mahindra Group's Performance 15
2016 Revenue Figures 16
Top Client list 20
Transportation Facilities offered 25
Lords Freight Services Provided 26
Safety and Sustainability 28

INTRODUCTION TO LOGISTICS

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 Logistics is a broad, far-reaching function which has a major impact on a
society’s standard of living. In a modern society, we have come to expect excellent
logistics services, and tend to notice logistics only when there is a problem.

 The difficulty in shopping for food, clothing, and other items if logistics systems
do not conveniently bring all of those goods or items together in one place, such
as a single store or a mall.
 The challenge in locating the proper size or style of an item if logistical systems
do not provide for a wide mix of products, colors, sizes, and styles through the
assortment process.
 The frustration of going to store to purchase an advertised item, only to find out
the store’s shipment is late arriving.

There are only few of the issues for granted which illustrate how logistics
touches many facets of daily lives. Because of the magnitude of the impact of logistics
on society and individuals, a macro approach is taken to understand the logistics
management.

Logistics is called by the many names, including the following:

 Business logistics
 Distribution

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  Logistical management
 Supply chain management
 Supply management

What these terms have in common is that they deal with the management of the
flow of goods or materials from one point of origin to point of consumption, and in
some cases even to the point of disposal.

The Council of Logistics Management (CLM) describes logistics management as

“The process of planning, implementing and controlling the efficient, effective flow and
storage of goods, services, and related information from point of origin to the point of
consumption for the purpose of conforming to customer requirements.”

KEY LOGISTICS ACTIVITIES

Outlined below are the key activities required to facilitate the flow of a product from
point of origin to point of consumption. All of these activities, listed below, may be
considered part of the overall logistics process.

 Customer service
 Demand forecasting/planning
 Inventory management
 Logistics communication
 Material handling
 Order processing
 Packaging
 Plant and warehouse site selection
 Procurement
 Return goods handling
 Traffic and transportation
 Warehousing and storage
While all organization may not explicitly consider these activities to be part of logistics
activities, each activity affects the logistics process.

The operating responsibility of logistics is the geographical repositioning of raw

materials, work in process, and finished inventories where required at the lowest cost
possible. Logistics is practiced for ages since organized activity began. Without logistics

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support no activity can be performed to meet defined goal. The current challenge is to
perform logistics scientifically in order to optimize benefits to the organization.
Logistics is a planning function of management. Logistics function is concerned with
taking products and services where they are needed and when they are needed.

Figure shows how logistics activities drive total logistics costs

Importance of the Study:

Mahindra has traditionally seen warehouse function as ‘profit center’ and not as a ‘cost
center’. Hence, efficient and effective warehouse management has been a crucial roles to

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play for this organization and it has acted as a profit center for this organization.
Warehouse Management provides maximum profitability with the minimum
investment through ordering cost and carrying of materials.

To understand how Mahindra is so successful in their Warehouse Management

operation and how they sustain the consistency in performance. Performance refers to
the way in which work is done. There can be a good performance or a poor one on an
improved performance. It is to understand the process and to quantifying the efficiency
and effectiveness of an action or activity by the Warehouse Management team.

INDUSTRY OVERVIEW

Logistics is regarded as the backbone of the economy, providing efficient and cost
effective flow of goods on which other commercial sectors depend. Logistic industry in

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India is evolving rapidly, it is the interplay of infrastructure, technology and new types
of service providers, which defines whether the logistic industry is able to help its
customers reduce their costs in logistic sector and provide effective services.

Despite of the weak economic sentiments, the logistics industry continues to witness
growth due to the growth in retail, e-commerce and manufacturing sectors. The Global
Logistics sector was expected to grow 10-15% in the period 2013-14. Logistics industry
is expected to reach over USD 2 billion by 2019. Rise of e-commerce logistics and
increased domestic consumption will lead the way for the industry in the coming years.
With a promise of growth and improvements, the service oriented logistics industry is
ready to expand beyond the horizons in the latter half of this decade.

Challenges faced by logistics industry in India:

The most essential challenge faced by the industry today is insufficient integration of
transport networks, information technology and warehousing & distribution facilities.
Regulations exist at a number of different tiers, is imposed by national, regional and
local authorities. However, the regulations differ from city to city, hindering the
creation of national networks.

Trained Manpower is essential both for the third party logistics sector as well as the
manufacturing and retailing sectors, which is very weak at a practical level, i.e., IT,
driving and warehouse as well as at a higher strategic level. The disorganized nature of
the logistics sector in India, its perception as a manpower-heavy industry and lack of
adequate training institutions has led to a shortfall in skilled management and client
service personnel. There is a lack of IT standard, equipment and poor systems
integration.

Poor facilities and management are the reason for high levels of loss, damage and
deterioration of stock, mainly in the perishables sector. Part of the problem is
insufficient specialist equipment, i.e. proper refrigerated storage and containers, but it is
also partly down to lack of training. The practitioners and the academicians are now

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aware of the importance of logistics and supply chain; however the field is still under
penetrated as far as research is concerned. It is essential to prioritize research and
development so that the weaknesses in the industry can be taken care of and improved.

Future prospects:

The logistics firms are moving from a traditional setup to the integration of IT and
technology to their operations to reduce the costs incurred as well as to meet the service
demands. The growth of the Indian logistics sector depends upon its soft infrastructure
like education, training and policy framework as much as the hard infrastructure.

To support India’s fast paced economy growth of logistics industry is very essential.
It is estimated that the Indian logistics industry will continue to show robust growth of
10-15% annually, leading the pace of growth of the economy at large.

The global economic outlook, indeed that of India is expected to significantly

improve as India Inc begins to tackle the economic downturn. With a new government
many policies are expected to be implemented which will give a fresh impetus to
India’s growth engine particularly in the corporate and SME sector which in turn will
expand demand for the logistics sector.

With the implementation of GST, the logistics companies, which are currently forced
to set up many small warehouses across multiple cities can set up just a few, big
warehouses region wise and can follow the hub-and-spoke model for freight movement
from the warehouses to the different manufacturing plants, wholesale outlets, retail
outlets and the various POS. This growth is backed by the boom in the e-commerce
sector and expansionary policies of the FMCG firms.

This has increased the service geography of the logistics firms but they also have to
meet the demands of quick delivery and tight service level agreements. The industry
has moved from being just a service provider to the position which provides end to end
supply chain solutions to their customers. Thus, all this has paved the way for further
growth of Logistics and Warehousing industry in the coming years.

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Few trends in India in 2017

 To achieve higher productivity and efficiencies businesses will need to

AUTOMATE some of their supply chain processes. Warehousing, for instance,
has an enormous potential to benefit from automation. With Amazon using its
Robotics division to help with picking orders, restocking and shelving, there’s a
lot of buzz about robots replacing employees. Our take on that is robotics, and
other forms of automation will emerge as a very attractive option. However, they
will collaborate with employees rather than replace them.
 To achieve higher productivity and efficiencies businesses will need to
AUTOMATE some of their supply chain processes. Warehousing, for instance,
has an enormous potential to benefit from automation. With Amazon using its
Robotics division to help with picking orders, restocking and shelving, there’s a
lot of buzz about robots replacing employees. Our take on that is robotics, and
other forms of automation will emerge as a very attractive option. However, they
will collaborate with employees rather than replace them
 E-COMMERCE has been changing the rules of logistics and transportation in the
past and will continue to steamroll in 2017, with Amazon leading the way, be it
with robotics-driven warehouse operations or setting up new shipping routes.
Traditional logistics providers will need to keep pace.
 FREIGHT volumes in shipping will continue to be high, despite rates going up.
Global air freight tonnage is expected to show an upward trend, buoyed by the
growth showed in 2016. Truckload volumes are also expected to go up.
 As promised by the Indian government last year, HIGHWAY construction has
received a boost and will remain a focus in 2017, strengthening road
infrastructure in the country
 Businesses will prefer to engage INTEGRATED SERVICE PROVIDERS that can
manage end-to-end logistics and transport, and bring in better control, visibility
and efficiencies amid chaos in the business environment.
 As consolidation happens, the global transport and logistics industry will be

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 about a few large providers and their success will depend on their
KNOWLEDGE of the local markets they operate in. This trend will extend well
beyond 2017.
 SUPPLY CHAIN DEMANDS will be focused on ensuring on-time last-mile
deliveries to keep pace with the rise of disruptors and unconventional business
models. Here’s where integrated logistics service providers with a sound
understanding of global and local markets will come in hand.
 India will soon see the emergence of WAREHOUSING HUBS as a result of the
implementation of GST in 2017. Some of the cities where these hubs are likely to
come up are Bhubaneshwar, Coimbatore, Goa, Guwahati, Jaipur, Nagpur,
Ranchi, Vijayawada and so forth
 As the rest of the world goes mobile, the transport and logistics providers will
look at integrating MOBILE applications to their Transport or Warehousing
Management Systems to provide smarter solutions to their clients.

COMPANY PROFILE
The Group:
The Mahindra Group is an Indian multinational conglomerate holding
company headquartered at Mahindra Towers in Mumbai, India, with operations
in over 100 countries around the globe. The group has a presence in aerospace,

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agribusiness, aftermarket, automotive, components, construction equipment,
defense, energy, farm equipment, finance and insurance, industrial equipment,
information technology, leisure and hospitality, logistics, real estate, retail, and
two wheelers. It is considered to be one of the most reputable Indian industrial
houses with market leadership in utility vehicle as well as tractors in India.

Mahindra & Mahindra is a part of the US$ 17.8 billion global Mahindra Group
headquartered in Mumbai, India, with a presence in over 100 countries and
employing over 2,00,000 people. The Group’s operations span 20 key industries
across 10 sectors

The Mahindra Group has consistently created value for all stakeholders. The total
Market Capitalization of the Group has increased by 108 times in the last 21 years
and by 23 times in the last 11 years..

Below mentioned some Key figures of improvement from the group.

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 Their core values are aligned with sustainable growth that is in harmony with
the environment and society. They have built a green revenue portfolio of over
US$ 393 million and have proactively been addressing issues pertaining to
Sustainability. A water positive group. Mahindra is also the first Indian Company
to sign up to EP-100, a new initiative to double energy productivity by 2030
which is developed and administered by The Climate Group. As per the last
Annual report [2015-2016], they will continue to invest in technologies that
increase energy efficiency and enhance their use of renewable energy. Mahindra
Group also focus on increasing recycling, reducing waste and restricting the use
of hazardous substances in their manufacturing activities

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 The Mahindra Logistics Limited

Mahindra Logistics Ltd. provides logistic services. The Company offers services
such as freight transportation, warehousing and distribution, brokerage, supply
chain solutions, and industry sector solutions. Mahindra logistics belongs to the
17.8 billion Dollars’ worth Mahindra Group with the vision of becoming a
leading global 3PL player.

A Company with strong parentage & brand Subsidiaries which has operations
span in 19 industries and 100+ countries employing over 2,00,000 people and
growing.

Mahindra logistics limited [MLL] was formed with a focus on Rural

Transportation needs. The Scope thereafter, was widened to transportation of
goods, warehousing and transport services for the corporate employees. The
Organization was incorporated as limited company and Rechristened as
Mahindra logistics limited. This paradigm shift was accompanied with and
increased focus on building Supply chain Management Capabilities in
Automobile and other industries coupled with IT infrastructure deployment.

The year 2008 marked the involvement of Mahindra Logistics Limited with a host
of customers within the Mahindra Group by meeting all the supply chain needs
like inbound and outbound logistics, inter-plant movement, warehousing,
linefeed, Freight forwarding and value added services among other solutions.

As per Mahindra logistics aggressive expansion they have partnered with two
other logistics to serve clients in all needs in Logistics. MLL’s Subsidiaries are

2 x 2 logistics Pvt Ltd and Lords Freight [India] Pvt Ltd.

2x2 Logistics

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Mahindra Logistics has partnered with Indian Vehicle Carriers Pvt. Ltd. (IVC) to
form a new company called ‘2x2 Logistics’ offering automotive outbound
logistics solutions to four-wheeler and two-wheeler industries.

This is the first time that MLL has added significant assets to its outbound
business - 100 vehicle carriers to begin with and an intention to ramp up capacity
shortly. MLL has a majority stake in 2x2 Logistics. The new company will offer
global standards of service and technology with a special focus on innovative
designs, highest degree of visibility and quality control. This partnership will
strengthen MLL’s existing pan India network and freely allow assets to operate
thereby bridging the gap between demand and supply.

It will also allow Mahindra logistics limited to fulfil one of its core values of
considering every customer a partner, evolving to make every customer a co-
owner.

Mumbai based IVC is one of the leading vehicle carrier solution providers in
India and has over three decades of experience in catering to automobile
manufacturers across India.

Lords Freight India Pvt Ltd.

Mahindra Logistics Ltd [MLL] has acquired a majority stake in Lords Freight
(India) Pvt Ltd, a move that will help the company enhance its portfolio of
services. The percentage of stake it acquired nor the investment is unknown.
Lords, which specializes in international logistics, is based out of Mumbai with a
presence in across all major Indian cities. This would be a maiden investment,
and will considerably add to the value proposition they offer to their customers,

“Our vision is to be India’s leading, most-preferred integrated logistics service

provider’ and international freight forwarding is an essential component of this

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vision. With this acquisition, MLL’s service portfolio will be considerably
enhanced,” said MLL Chief Executive Officer Pirojshaw Sarkari.

“This investment by MLL will allow the Logistics Division to pursue a strategy
of enhancing their capabilities and expanding our international presence, while
simultaneously leveraging MLL’s customer base and process methodologies.

What they do:

Mahindra Logistics Ltd. provides logistic services. The Company offers

services such as freight transportation, warehousing and distribution, brokerage,
supply chain solutions, and industry sector solutions. Mahindra logistics belongs
to the 17.8 billion Dollars’ worth Mahindra Group with the vision of becoming a
leading global 3PL player.

A Company with strong parentage & brand Subsidiaries which has operations
span in 19 industries and 100+ countries employing over 2,00,000 people and
growing.

This organization have provides end-to-end logistics solutions to leading

companies all over India, With a turnover of INR 1900+ Crores, they have won
prestigious awards like ‘Confederation of Indian industries[Cii]– Best3PL' in the
year 2014.

Very strong base and experience in Integrated Services like, Supply chain
consulting, Freight forwarding, Transportation, Cross-docks/Consolidation
centers, In-plant stores & line feed, Warehouse inventory & order management,
Last mile delivery. Also provides Value added Services like (Packing, labeling,
kitting)

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  A Growing company with Strong pan India presence,
 National transport Network with 13 offices, 90 operating locations, Over
25,000+ vehicles a month
 Warehousing space Over 5 million square feet with over 2000+ Manpower.
 In-plant stores and line feeding at 28 manufacturing locations, Managing
workforce of over 4,000

Mahindra logistics has grown significantly over last 3 years and serves market
leaders in every sector. We see that they stand true to the Mahindra brand with
focus on customer centricity through transparency, quality and customized
solutions

Clients:
Below listed are few prestigious Client catered by Mahindra Logistics.

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 What do they offer?
Mahindra India has an outstanding reputation in the market for providing a
reliable, fast and easy-to-use service. Mahindra offers-

 Highly trained and professional staff, committed to being responsive to all

customer’s needs
 Customer service agents, available round-the-clock, 365 days of the year, to
serve customers whenever and wherever they need them
 Electronic pre-clearance of shipments through customs
 Five international gateways providing direct-to-air networks and faster
sorting of inbound and outbound shipments

Mahindra India is a proven facilitator of trade, across the globe. Their strength
lies in our global network and the know-how of our people. Backed by strategic
alliances with world-class partners and the innovative use of technology, they
strive to continuously improve the quality of the service. Their services range
from fast, responsive and cost effective express deliveries to-ecommerce
fulfillment and intelligent logistics solutions. Mahindra core services consist of
door-to-door air express delivery of documents and parcels of all sizes, both into
and out of the country.

At Mahindra Logistics Limited, they are configured to deliver excellence in on-

ground operations and service delivery. Process control and continuous
improvement are the imbibe way of doing business. They endeavor to establish
improved processes and partner with our customers on a sustained impact
journey

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  Technology:
They can provide 100% visibility and control over vehicles in transit through the
control tower

 End to end truck track and trace functionality

o Ensure time management
o Minimize idle time
o Maximize truck utilization
 Dispatch planning
o Optimize truck planning
o Ensure capacity and cost maximization
 Value added services
o Over-speed reporting
o Notification of delays via email, SMS, etc
With the cutting edge technology they have seen Reduction in transit time
variably and early notification of delays if any, this increases customer
satisfaction. Increased utilization and efficient routing of vehicle and live tracking
of all operational metrics with 100% Safety monitoring (truck over speeding,
incorrect routing)

 End to End Supply for internal Clients:

Mahindra Logistics Divisions has successfully managed end-to-end logistics for
internal clients like Mahindra & Mahindra's auto, farm sector businesses.

 50 Stockyards & Warehouses across India.

 5,500 vehicles transported to regional stockyards & Warehouse in a
month for outbound transportation to meet end to end needs.
 100 monthly trips on one of the major routes In-plant management &
Inter-unit transfer of engines, castings and aggregates.

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  18,000 parts supplied in a month; part loads converted to full truck loads
(FTL), leading to on-time delivery- In-bound to axle/engine
manufacturing units and fully integrated plants.
 50% shipment consolidated at cross docks; 25-30 Cr. annual savings Raw
Materials imported, Milk-runs in supplier locations & consolidation at
cross-docks

 End to End Supply for External Clients:

Mahindra Logistics Ltd. offers large bouquet of services for a major e-
commerce player in India.

 Line haul : 1500+ trips/month to 17 Major Cities in 30 routes

 Local Distribution: Local Distribution in 530+ Vehicles to 23 Cities
 IHS1 (Kirana): 160+ Vehicles to 17 Small Cities.
 Last Mile – Heavy and Bulky: End to End delivery by Mahindra Logistics
delivery boy’s initiated to 3 cities.
 Last Mile – DC and small packages:1 Hub with small package delivery by
MLL's delivery team Managed out of Cochin Distribution Center
 Wholesale model: Business to Business delivery model to starting
Bangalore.
 Time bound delivery – shortest time to market
 24 x 7 dedicated command center
 Container body vehicles
 GPRS enabled vehicles
 DNTS (Distribution Network Tracking System)
 OMS (Order Management System)
 In-transit safety initiatives like padding, matting, etc.

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Mahindra Logistics manages a complex distribution activity on Pan India basis,
which moves more than 3000 Tons per month, very much with in the permitted
Service level agreement 95%+ OTIF for customer, Damage goods reduced to
0.5%, High delivery reliability at 97%.

This includes Services like:

 Express surface
 Express Air
 Full Truck Load
 Part Truck Load
 Rail
 Dedicated

 Transportation:
Transportation is the most visible of all functions of logistics and high
contributor to logistics cost. We can see trucks, containers and wagonloads of
material being moved from place to place as an activity directly associated with
trade and business. We should also appreciate that this is an activity that adds
highest amount of cost to the activity of making inputs and outputs available to
consumers. Transportation function moves the products to meet customer
expectations at minimum cost. Transportation is one of the most visible elements
of logistics operations. Transportation provides 2 major functions: product
movement and product storage

MLL has 8 strategically located cross docks near manufacturing hubs Pan
India. Active Cross docks are currently at Gurgaon, Jaipur, Nashik, Chakan,
Hyderabad, Bangalore, and Chennai. 2 other docks coming at Haridwar &
Zaheerabad.

 Base load of over 200 MT / day

 Consolidation and distribution through cross docks

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  Conversion of Part loads to Full loads
 Reduced transit time
 Overall reduction in logistics cost
 Service Offering

 Freight forwarding solutions:

Mahindra Limited also provides cargo handling facilities through it partner,

Lords freight India Pvt Ltd. Below find the services, Sectors and clients Serviced.

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 LORDS provides air and ocean freight movement across key geographies

Lords has executed project cargo of explosive goods for the ministry of defense
through a flight charter

 Cargo details: Currently reaching to around 3000 retail stores in 19 cities

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  Commodity: 27 pkgs // 11189 kg // Projectile, Primer, Fuse and
Charge, DG cargo
 Origin Airport : Incheon, Korea
 Destination: Delhi, India.
Major Challenges

 Finding a suitable Aircraft within the readiness time.

 Cost efficiencies to suit the customer
 Class 1, DG cargo, can only be moved via chartered freight.
 Complicated processes and requirements given the consignee
 Aircraft to avoid overflying China, Bangladesh, Pakistan.
Key achievements:

 Optimized route plan to avoid all no fly zones yet arrive in time
 NOC and Landing permit obtained before arrival in India
 NOC’s from all overflying and refueling countries managed in-house
 All legs of the movements - Planning, execution and final delivery –
managed as per expectations

 Safety & sustainability:

 Corporate safety council:
In tune with Mahindra standards, Mahindra Logistics has corporate safety
council establishing Mahindra Logistics Limited way of Ensuring. Health and
Safety ensuring the following:

o Awareness amongst workers undertaking educational, training and

promotional activities regularly
o Drafting of MLL Safety manual and policy
o Site wise monitoring of adherence to safety norms, ‘Best Safety Practice’
award to teams
o Organizing National Safety Week annually to increase awareness

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o Continuous Training Programs for drivers, Warehouse & Plant
employees
 On-ground safety initiatives:
o Safety officer for all operations to manage adherence and trainings
o Independent periodic safety audits
o MLL certified vehicles – compliance standards for all business partners
o Provision of required safety attire Safety belts and ropes provided in
Zaheerabad plant
o Monitor metrics of in-plant transport damage, safety incidences and
violations across operations
 Driver welfare
o 13,848 hours of training conducted for drivers pan India
o 37 events were conducted wherein 2,329 drivers were benefited
o Scholarships provided to 64 Driver’s children for 10th and 12th
o Regular interactions with drivers
 Business Associates engagement programs:
o All Business Partners evaluated and assigned a category (Gold, Silver or
Bronze); Annual MLL business partner awards held
o Financial, as well as non-financial support is extended to business
partners, e.g., investment for new vehicles, loyalty benefits, discounted
deals for Mahindra vehicles, etc.

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 Objective of the Study

PRIMARY OBJECTIVE
 To have a thorough understanding of how logistics Operations and
Warehouse management works inMahindra logistics.
 To learn the effectiveness of warehouse operationsin Mahindra
Logisticsand to understand the standards and benchmark the
organization with respect to theindustry.

SECONDARY OBJECTIVE

 To know about Logistics Industries

 To understand the Divisions, Departments process of warehousing departments
 To know whether the internal and external customers are satisfied
with the existingrangeofserviceprovided.

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 Scope of the Study:
In order to understand the concepts of Warehousing in terms of practical usage
and to have a glimpse into the how a real logistics company or organization uses
Warehousing Management as a formidable tool to gaincustomer satisfaction,
reduce overall cost and increase efficiency.

Inside the walls of the warehouse, the utilization of every component “space,
people, inventory and equipment” will impact the bottom line in profound ways
over time. Warehouse Management enables to analyze these components
continually, so we can conserve effort, fill orders faster and more accurately, save
space and reduce inventory and save money.

I selected “Mahindra Logistics” India’s one of the leading logistics Company.

Thestudyisdone to understand how Mahindra logistics manage their Warehouse
operations effectively.

Limitations of the Study

 The necessary information about the study was given by the company.

 Time constrain was a major limitation of the study

 Some of the study was based on observation from my short stint of Internship in
the Warehouse and Chennai Branch Office.

Research Methodology

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 Companies could gain cost advantage using their logistics area of the business.
Warehouse management is a possible source of cost improvements a logistics that
companies could use during this economic crisis. The goal of this study is to expose
a few best practices used in Mahindra Logistics limited warehouse performance
measurement which lead to performance improvements.

The research represents a case study on a loss making warehouse which was
contracted by Mahindra logistics. The study demonstrates the intricacies of
warehouse management practices earlier used and how it was improved by
Mahindra Warehouse team. This is to understand possible barriers which
influence the overall performance of warehouse operation. Warehouse performance
measurement refers to the measurement of: optimal use of storage space, customer
relations, activity, quality level, assets usage and costs.

This study is based on data provided by Mahindra Logistics Reports team form
their repository. From the data we understand opportunities to improve
warehouse performances in terms of planning, design and operation in General.

Based on the data provided, we are suppose are to understand how Mahindra
Logistics Uses warehouse performance indicators?

 How are they calculated by Mahindra Logistics and how are they interpreted
the issues, suggested solutions for the crisis.
 How can a manager use them in order to improve the warehouse performance?
This study will answer all these questions and will also present the way in which
using performance indicators in awarehouse belonging Mahindra Logistics Limited

Keywords: performance measurement, performance indicators, logistics,

warehouse management.

Data Collection:

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To understandand to reach the said objectives, the study intends to use qualitative
research model which was mainly based on primary data and some secondary sources
were also used.

 Primary data:
o One to One discussion with the Warehouse management Team. Key
Informant Interviews [KII]

 Secondary data:
o Data Shared by Warehouse Reporting team.
o Annual Reports.
o Blogs
o Press Releases,

The study found the Effective management by Mahindra Logistics team improved the
performance of a Loss making Warehouse.

Warehousing:

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 A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
They are usually large plain buildings in industrial parts of towns. They come equipped
with loading docks to load and unload trucks; or sometimes are loaded directly from
railways, airports, or seaports. They also often have cranes and forklifts for moving
goods, which are usually placed on ISO standard pallets.

 Introduction to Warehouse:
Warehouse can play a key role in the integrated logistics strategy and its building
and maintaining good relationships between supply chain partners. Warehousing
affects customer service stock-out rates and firm’s sales and marketing success. A
warehouse smoothens out market supply and demand fluctuations. When supply
exceeds demand, a demand warehouse stores products in anticipation of customers’
requirements when Demand exceeds supply the warehouse can speed product
movement to the customer by performing additional services like marking prices,
packaging products or final assembling etc.

Warehousing can be defined as a location with adequate facilities where volume

shipments are received from production center, which are then broken down into
particular order and shipped onwards to the customer.

Warehousing is an integral part of any logistics system. The warehouse is a link

between producer and customer.

Out-bound warehouse help consumers buy on demand without a near4by

production plant warehousing cost are about 10% of total integrated logistics costs for
most companies.

A well-run warehouse operation is crucial to any logistics business competitiveness.

Warehouse management enables reliable and cost-efficient deliveries across logistics
chain. Warehouse management helps in optimizing warehouse operations. It enables to

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pinpoint big potential cost-savings and gives us a “hands-on” control of the movement
of goods not only in warehouse, but also throughout the entire logistics chain.

 Role of Warehousing in Supply chain:

Since inventory holding and the customer serving are key warehouse functions
which implies warehouse has an important role to play in supply chain. Some of the
important roles of warehouse are to make or break bulk.

Consolidation centers, cross docking centers, transshipment, product fulfilment

centers,returned goods depots, some other roles like customer support, installation and
repair services. The roles mentioned here are associated with some concepts like agility,
production postponements and time compression which are recognized as increasing
trends in warehousing. Thus inventory has important role on warehouse in modern
supply chains

 Warehouse Management is used to optimize:

Inventory: With our complete inventory management capabilities, track data on
every unit utilizing the latest technologies.

 Labor: Make people more efficient by managing their tasks and improving
their processes. Plan and balance workload and monitor activities with
integration to Labor Management.
 Physical Space: Cross-docking and flow-through capabilities, plus integration
with Yard Management, reduce the need for warehouse space.
 Time: Automate picking, packing and shipping, and minimize the number of
moves per order

 Types of Warehouse:
 Private Warehousing:

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A firm producing or owning the goods owns private warehouses. The goods are stored
until they are delivered to a retail outlet or sold. Potential advantage of using a private
warehouse is the ability to maintain physical control over the facility, which allows
mangers to address loss, damage, and theft. When not in use they can rent it out.

The construction and maintenance of private warehousing can be extremely costly. All
the expenses have to be carefully analyzed and evaluated. These are:

o Fixed expenses and building and land acquisition costs which are high;
o Expenses incurred on ensuring that warehouses are properly equipped with
material-handling equipment like conveyors, fork lifts, hand trucks, racks and
bins, and dock levelers;
o The costs of salaries of staff required for peak activity periods which can be very
high since retrenchment during slack periods may not be possible;
o Extra payment to be made for work on Saturday and Sundays and holidays;
o Generator and other services charges are required to be taken into account.
o The office and record-keeping equipment necessary for successful warehousing
operations has to be budgeted for;
o To this must be added the cost of such item as fuel, air-conditioning, power and
light.
o The cost of maintaining insurance records and of the premiums paid for fire,
theft, and also for workmen’s compensation.
 Advantages
The advantages and disadvantages of private warehousing as against those of public
warehousing are:

 Private warehousing offers better control over the movement and storage of
products as required by the management from time to time.
 There is less likelihood of error in the case of private warehousing since the
company’s products are handled by its own employees who are able to identify
the products of their own company better.

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  If there is sufficient volume of goods to be warehoused, the costs of private
warehousing compares favorably with that of public warehousing. But private
warehouse may not be expected to be packed up to the brim all the while.
Therefore the costs of private warehousing per unit may actually be higher.

 Public Warehousing
A public warehouse rents space to individuals or firm needing storage, some provide
wide array of services including packaging, labeling, testing, inventory, maintenance,
local delivery, data processing and pricing.

All the foregoing cost factors operate in public warehousing as well. But in public
warehousing, the expenses are distributed over several other consignments of other
clients. In most instances therefore can render better service with greater flexibility for
the user. A company running a private warehouse will have to compare costs incurred
with the total figure for the complete service through public warehousing.

 Advantages
 It is generally less expensive and more efficient.
 Public warehouses are usually strategically located and immediately available.
 Public warehousing is sufficiently flexible to meet most space requirements, for
several plans are available for the requirement of different users.
 Fixed costs of a warehouse are distributed among many users. Therefore the
overall cost of warehousing per unit works out to a lower figure.
 Public warehousing facilities can be given up as soon as necessary without any
additional liability on the part of the user.
 The costs of public warehousing can be easily and exactly ascertained, and the
user pays only for the space and services he use.

 Contract Warehousing

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Contract warehousing is a specialized form of public warehousing. In addition to
warehousing activities such warehousing provides a combination of integrated logistics
services. Thus allowing the leasing firm to concentrate on its specialty. They provide
customized services, eg. Value Added Services.

 Co-Operative Warehousing
These warehouses are owned, managed and controlled by Co-operative societies. They
provide warehousing facilities at the most economical rates to the members of their
society.

 Bonded Warehousing:
These warehouses are owned, managed and controlled by government as well as
private agencies. Private bonded warehouses have to obtain licenses from the
government. Bonded warehouse are used to store imported goods for which import
duty is yet to be paid. In case of imported goods the importers are not allowed to take
away the goods from the parts till such duty is paid. These warehouse are generally
owned by dock authorize and found near the ports.

 FUNCTIONS OF WAREHOUSES:
Warehouses are basically intermediate storage points in the logistics system where raw
material, work in process, finished goods and good in transit are held for varying
duration of times for a variety of purposes. The warehousing functionality today is
much more than the traditional function of storage. The following are main function
that warehousing serves today:

 Consolidation:
This helps to provide for the customer requirement of a combination of products from
different supply or manufacturing sources. Instead of transporting the products as
small shipments from different sources, it would be more economical to have a
consolidation warehouse. This warehouse will receive these products from various
sources and consolidate these into shipments, which are economical for transportation
or as required by the customers.

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  Break Bulk:
As the name suggests, the warehouse in this case serves the purpose of receiving bulk
shipments through economical long distance transportation and breaking of these into
small shipments for local delivery. This enables small shipments in place of long
distance small shipments.

 Cross Docking:
This type of facility enables receipt of full shipments from a number of suppliers,
generally manufacturers, and direct distribution to different customers without storage.
As soon as the shipments are received, these are allocated to the respective customers
and are moved across to the vehicle for the onwards shipments to the respective
customers at these facilities. Smaller shipments accompanying these full shipments are
moved to the temporary storage in these facilities awaiting shipments to the respective
customers along with other full shipments.

 Product Mixing:
Products of different types are received from different manufacturing plant or sources
in full shipment sizes. These products are mixed at these warehouses into right
combination for the relevant customers as per their warehouses and continuously
provided for the product mixture shipments requiring these.

 Stock Piling:
This function of warehousing is related to seasonal manufacturing or demand. In the
case of seasonal manufacturing, certain raw materials are available during short periods
of the year. Hence, manufacturing is possible only during these periods of availability,
while the demand is full year around. This requires stockpiling of the products
manufactured from these raw materials. An example is mango pulp processing. On the
other hand, certain products like woolens are required seasonally, but are produced
throughout the year, and thus need to be stockpiled as such.

 Postponement:

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This Functionality of warehousing enables postponement of commitment of products to
customer until orders are received from them. This is utilized by manufacturers or
distributors for storing products ready up to packaging stage. These products are
packaged and labeled for the particular only on receipt of the order.

 Positioning:
This permits positioning products or materials at strategic warehouses near to the
customers. These items are stored at the warehouse until ordered by the customers
when these can be provided to the customers in the shortest lead-time. This function of
warehousing is utilized for higher service levels to customers for critical items and
during increased marketing activists and promotions.

 Assortment:
Assortment warehouse store a variety of products for satisfying the variety
requirements of customers. For example, retailers may demand different brands of the
same product in small quantities rather than larger quantities of the single brand.

 Decoupling:
During manufacturing, operation lead-times may differ in order to enable production
economies. Thus, the batch size and the lead-time of production may differ in
consecutive operations. This decoupling of operations requires intermediate storage of
materials required for the subsequent operation.

 Safety Stocking:
In order to cater to contingencies like stock outs, transportation delays, receipt of
defective or damaged goods, and strikes, safety stocks have to be maintained. This
ensures that, on the inbound site production stoppages do not occur, and, on the
outbound side customers are fulfilled on time.

 Advantages of Warehousing
Mahindra’s Warehouses offers many advantages to the business community. Whether it
is industry or trade, it provides a number of benefits which are listed below.

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 Protection and Preservation of goods - Warehouse provides necessary facilities to
the businessmen for storing their goods when they are not required for sale. It
provides protection to the stocks, ensures their safety and prevents wastage. It
minimizes losses from breakage, deterioration in quality, spoilage etc.
Warehouses usually adopt latest technologies to avoid losses, as far as possible.
 Regular flow of goods- Many commodities like rice, wheat etc. are produced
during a particular season but are consumed throughout the year. Warehousing
ensures regular supply of such seasonal commodities throughout the year.
 Continuity in production- Warehouse enables the manufacturers to carry on
production continuously without bothering about the storage of raw materials. It
helps to provide seasonal raw material without any break, for production of
finished goods.
 Convenient location- Warehouses are generally located at convenient places near
road, rail or waterways to facilitate movement of goods. Convenient location
reduces the cost of transportation.
 Easy handling- Modern warehouses are generally fitted with mechanical
appliances to handle the goods. Heavy and bulky goods can be loaded and
unloaded by using modern machines, which reduces cost of handling such
goods. Mechanical handling also minimizes wastage during loading and
unloading.
 Useful for small businessmen- Construction of own warehouse requires heavy
capital investment, which small businessmen cannot afford. In this situation, by
paying a nominal amount as rent, they can preserve their raw materials as well
as finished products in public warehouses.
 Creation of employment - Warehouses create employment opportunities both for
skilled and unskilled workers in every part of the country. It is a source of
income for the people, to improve their standards of living.
 Facilitates sale of goods- Various steps necessary for sale of goods such as
inspection of goods by the prospective buyers, grading, branding, packaging and
labelling can be carried on by the warehouses. Ownership of goods can be easily

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 transferred to the buyer by transferring the warehouse keeper’s warrant.
 Availability of finance- Loans can be easily raised from banks and other financial
institutions against the security of the warehouse-keeper’s warrant. In some
cases warehouses also provide advance to the depositors of goods on keeping the
goods as security.
 Reduces risk of loss - Goods in warehouses are well guarded and preserved. The
warehouses can economically employ security staff to avoid theft, use
insecticides for preservation and provide cold storage facility for perishable
items. They can install fire-fighting equipment to avoid fire. The goods stored
can also be insured for compensation in case of loss.

Mahindra Logistics’ Warehouses:

Besides the significant investments made in information technology, MLL has also
recently invested in over 500,000 square feet of modern warehousing space in western
India, this is a mix of both multi-user and built to suite facilities in a single complex, and

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adds to the 4 million square feet already operational. MLL’s plan is to now develop
another million square feet of modern warehousing in south and north India. These
complexes will include both multi-user and built to suite units with the very best /
latest design, engineering, layout, material handling systems, automation and
warehouse management systems. Mahindra's warehouse and stores and line feed
service offerings:

 Very Optimized warehouse layout design

 High end Receipt and storage of inputs (barcode tracking)
 Complete accountability of inventory
 Accurate order fulfillment (minimum lost sale)
 Just in Time/Just In Sequence delivery to line (minimum downtime)
 Automation through Warehouse Management system.
 Packaging solutions
 Bundling/kitting/labelling/sequencing
 Hazardous wastes/old stock disposal
 Advisory services(Warehouse re-design, location and sizing optimization)
Key Differentiators from other Warehouse providers:

For People:

o Pool of exceptional warehouse managers

o 24x7 customer support
Systems:

o Proprietary tools for improving productivity and increasing efficiency

o MLL Warehouse Management System
o Layout Optimizer for optimizing layouts
o Clean Sheet tool for process-wise manpower requirement
o Knap Sack for optimal storage pattern analysis

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Infrastructure provided.

o 5 Million Square feet. of space across the country

o Ability to bring in customized Material handling Equipment’s like, Cranes,
Forklift Dozers Etc.

Processes:

o Well-defined processes for tracking metrics.

o Structured process flows and SOPs for each sub-operation.
o Rigorous performance review and incentive plan.

Value to customer

Operational excellence:

o 95% On Time and In Full

o 95% Inventory Accuracy
Cost savings:

o Up to 10% reduction in overall costs through increased space utilization

Other Benefits from Mahindra ware house to Clients.

o Improved efficiency of manpower through better planning, multi-skilling

o Best-in-class warehouse infrastructure
o Flexible commercial arrangements
o Transparency in operational metrics
o Sustainable impact throughWarehouse Management System

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Mahindra have Pan India footprint of warehouses and in-plant activities. The number
of warehouses is another strategic decision parameter taken by Mahindra Logistics
which is impacting a number of cost variables and customer service. If customer service
is taken in cost terms as cost of customer dissatisfaction, the number of warehouses will
affect transportation, inventory, and warehousing and customer dissatisfaction costs.

From their research they found transportation costs initially decreases with increasing
number of warehouses. This is due to the transportation economics obtained by having
large-volume long-range transportation from consolidation warehouses and short-
range small-volume transportation from break-bulk warehouses. However, as the
number of warehouses increases beyond a certain value, the transportation costs starts
increasing due to large number of transportation trips in – between the larger numbers
of warehouses. Inventory costs continuously increases with the increasing number of
warehouses beyond the increased space available needs to be utilized and firms
increase the commitment of inventory at these warehouses beyond those actually
needed. Transit inventory costs continuously decrease with the increased number of
warehouses due to the shorter transportation times between the larger numbers of
warehouses. The warehousing costs increase with more warehouses due to the
maintenance and facility costs associated with each warehouse. For the same space, a
single warehouse incurs less warehousing cost than two warehouses.

o Over 30 Ware houses locations across Sectors

o 28+in plant Operations
o Managing more than 5 million square feet of warehouse space.

Mahindra’s logistics location decision regarding warehouses is affected by

manufacturing plant, customer and market locations. They consider warehouse
locations as market-positioned, manufacturing-positioned, or intermediately-
positioned.

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  Market-positioned warehouses
Market-positioned warehouses are located near to the customers and markets (Chennai,
Mangalore, Bangalore, Mumbai, Delhi, Chandigarh, Ludhiana, Nagpur, Vizag
&Hyderabad) with the objective of serving them in proximate. These generally have a
large variety and low volume of items to service local requirements. Such warehouses
reduce cost by providing place utility. MLL’s warehouses functions as a collection point
for the products of distant firms with the resulting accumulations of product serving as
the supply source for retail inventory replenishment. This approach allows large and
cost-effective shipments from the manufacturer with lower-cost, local transportation
providing service to individual retailers.

 Manufacturing-Positioned Warehouses.
Mahindra’s positioned it’s warehouse are located near to their own manufacturing
facilities in order to support manufacturing on the inbound side and to facilitate
assortment-creation and shipping on the outbound side. This improves the support to
manufacturing division

A few of the factors governing the warehouse locations are:

o Availability of services
o Land cost and soil strength and lay off land for drainage.
o Availability of transport linkages for example, to a rail siding
o Availability of utilities of water and power
o Taxes and insurance cost
o Expansion space availabilityBelow listed is the InPlant Warehouses and
External Warehouse Map.
Ware Housing
Model Customized warehousing Multi-user warehousing

Built-to-suit warehouses catering

to varied needs and Allotting space to multiple users
Description product types
Operations depend on the location Addressing different types of
and demand. Ensuring optimum

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 type of warehouse required utilization of resources
Fixed cost model depending on Pay-and-Park’ model
Commercial
infrastructure, manpower and
Model Variable cost model with a fixed
services offered
minimum
Customized to best fit product Flexibility of upscaling downscaling
specifications and business needs as per demand
Advantage to
Customer Typically used for Regional
Typically used for Centralized
Distribution Centers and satellite
Distribution Centers
ware houses

Mahindra Logistics’ Innovation led implementation delivering value for a

leading e-commerce player.

 Started pilot in just 1 city in Nov’14; In 2015, expanded to 19 cities pan-

India
 Distribution to stores for pickup by the end customer / last mile delivery
by store staff.

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  Single point of contact for pan-India delivery from WH to stores.
 Pick-up from customer Warehouse, delivery and cash collection handled
solely by the drivers.
 Placement attendance of 98%
 100% on-time delivery
 Zero shortage of shipments and COD.

Some of the key achievements are:

 Optimized routes to utilize vehicle to the maximum – delivery, cash

collection and returns
 Overall cost reduction by: - Eliminating delivery boys with single drivers
visiting 10-15 stores each.
 Achieved 4x efficiency in volumes, using the same resources i.e. drivers and
trucks

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WAREHOUSE LAYOUT AND DESINGN
Mahindra’s warehouse layout is designed in such a way that it can increase output,
improve product flow, reduce cost, improve service to customers and provide better
employee working condition.Their optimal warehouse layout and design for a firm will
vary by the type of product being stored, the company financial resources, competitive
environment and needs of customer. The warehouse manager considers the cost of
trade between labor, equipment, space and other vital information.

Designing warehouses is challenging because it involves so many trade-off decisions.

Each warehousing function needs to be carefully implemented in order to achieve
operational. These targets are often expressed in terms of capacity, throughput, and
customer service levels.

A typical structured approach of warehouse designing could be as follows:

 Determining the overall space requirements for all warehouse processes

 Specify a U-shape, straight-thru, or modular overall flow design
 Locate functions with high adjacency requirements close to one another
 Assign processes with high storage requirements to high-bay space and labor
intensive processes in low-bay space
 Document expansion and contraction strategies for each warehouse process

Design and layout principles used in Mahindra warehouses.

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  Use a one-storey building wherever possible.
 Use straight-line or direct flow of goods in and out of the warehouse with goods
being delivered at one end, held, and ranked according to ABC analysis.
 Utilize an effective storage plan to maximize warehouse operations and to avoid
inefficiencies.
 Use efficient materials handling equipment.
 Minimize aisle space within the constraints of the size, type and turning circle of
materials handling equipment.
 Maximize use of the building’s height to use the cubic capacity fully.
 Use an efficient system of product identification.
 Plan for growth.
 Ensure full attention is given to health and safety issues

In designing warehousing systems it is desirable to maximize.

 Space utilization;
 Equipment utilization;
 Labor utilization;
 Accessibility of all materials;
 Protection of all materials.

Storing goods in adequate space with the proper equipment by well trained personnel
in a properly planned layout results in maximum protection of items.

Types of Warehouse Layout are:

 The through flow system

 Inverted “T” flow
 Cross flow system
 Corner flow system

Mahindra considers three factors, in the design process,

 The number of stores in the facility,

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  Height utilization
 Product flow.

Their warehouses have 20-30 foot ceiling. Through the use of racking or other hardware
it is possible to store product up to the building ceiling. Warehouse design also allow
for straight product flow through the facility whether items are stored or not. In general
this means that product can be received at one end of the building, stored in the middle
and then shipped from other end. 

In Mahindra’s warehouse layout product are grouped according to their compatibility,

complementarities, and popularity.

 Compatibility refers to whether products can be stored harmoniously

 Complementarities how often product are ordered together and therefore stored
together
 Popularity relates to different inventory turnover rates or demand rates of
products. Items that are in greatest demand should be stored closest to shipping
and receiving docks.

From their design we can understand that a Good warehouse layout and design often
involve the use of automated equipment, such as a conveyor system to handle large
number of products packaged in a carton. The entire area of facilities development that
is size and number of warehouses, location analysis, warehouse layout and design is an

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important factor yet complex, part of warehouse management. In recent years,
computers have played a more significant role as logistics executives attempt to
optimize warehouse operation. Thus a warehouse plays a multi-faceted role in the
integrated logistic system.

 Warehouse Equipment’s:
In the present business world, all the warehouses are striving to attain an ideal
warehouse in which every equipment is automated and integrated with the computer
systems which minimize the effort put on to perform the operation and cuts down the
cost for the operation. This will at the same time reduce the man power required to
perform various operations in a warehouse.

Material handling involves short-distance movement within the confines of a building

or between a building and a transportation vehicle.It utilizes a wide range of manual,
semi-automated, and automated equipment and includes consideration of the
protection, storage, and control of materials throughout their manufacturing,
warehousing, distribution, consumption, and disposal.Material handling can be used to
create time and place utility through the handling, storage, and control of material, as
distinct from manufacturing, which creates form utility by changing the shape, form,
and makeup of material.From my Observation the role of equipment in warehouse
operations is to

 Reduce cost (labor + space)

o Enhance space utilization by, e.g.,

• Enabling the exploitation of the vertical dimension of the facility
• Allowing for denser packing

o Allow for more efficient order-picking by, e.g.,

• Increasing the sku density
• Supporting the automated transfer of material from storage to sorting and

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 consolidation area

 Enhance responsiveness
o Increase the throughput of the facility, e.g.,
• Increasing the SKU density
• Establishing a more ergonomic environment/arrangement for the warehouse
operators
• Facilitating the parallelization of order picking
• By parallelizing the tasks of order-picking and replenishment

 Maintain Quality of Product and Operations

o Provide an orderly storage environment
o Provide efficient ways for product tracing and identification
o Provide safe and secure material handling
o Facilitate order sortation and consolidation
o Establish and maintain a controlled environment e.g.,
• Temperature control
• Access control

 Equipment Classification
 Containers & Unitizing Equipment
 Storage and Retrieval Equipment
o Unit Load
o Small Load
 Conveyors
 Warehouse docks and dock-related equipment
 Automatic Identification and Communication Equipment

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Pallet Storage Modes

 Block Stacking
 Rack Storage
o Single-Deep
o Double-Deep
o Drive-In/Through
o Pallet Flow
o Unit Load AS/RS ….etc.
An efficient storage mode when there are multiple pallets per SKU; inventory is turned
in large increments, I.e., several loads of the same SKU are received or withdrawn at
one time. Main problem with this method is : Loss of space due to “honeycombing” not
effective utilization of the vertical dimension of the facility

 Selective or Single-Deep or Simple Pallet Rack

o The “benchmark” storage mode
o Due to rack supports, each pallet is independently accessible (i.e. it supports
totally random access)
o Trade-off: too many aisles => inefficient space utilization
 Double-deep rack
o Two selective racks placed back-to-back => 2-deep lanes
o Each lane dedicated to one SKU => space loss in case of SKU’s with odd number
of pallets
o Less aisle space required (up to 50% savings in aisle space)
o Trade-off: More work and/or specialized equipment for retrieving

 Other pallet rack types

o Drive-In/Through rack: 5-10 loads deep
• Better space utilization
• More difficult, even dangerous retrieval

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o Pallet flow rack: up to 8 pallets deep
• The rack shelves are slanted and have rollers, and therefore, every time a
pallet is retrieved from a lane, the pallet behind it takes its position.
• Allows for simultaneous picking and restocking
• Supports FIFO operation
• Typically used in high-throughput facilities
o Cantilever rack:
• Supports long items like timber and pipes

 Unit-Load Retrieval Equipment

o Key Differentiation factors:
• Aisle width requirements
• Lift height/weight capacity
• Lane depth they can reach
• Degree of automation
• Capital expense
o Major types
• Willkie Stacker
• Counterbalance Lift Truck
• Narrow Aisle Vehicles
• Automated Storage/Retrieval Machines

 Small Load Storage and Retrieval Equipment

o Operator-to-Stock (or Man-to-Part or in-the-aisle) system: the operator travels to
the storage location to retrieve material
o Stock-to-Operator (or Part-to-Man or end-of-aisle) system: the material is
mechanically transported to the operator for retrieval
o Advantages of STO:
• Higher productivity

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 • Easier supervision
• Better item security and protection
o Disadvantages of STO:
• More expensive
• More maintenance
• More difficult to reconfigure

Operator-to-Stock Storage Equipment

o Bin Shelving
o Modular Storage Drawers in Cabinets
o Carton Flow Racks
o Mobile Storage
o All the above equipment can also be arranged in mezzanines to get a better
exploitation of the building cube.

 Operator-to-Stock Retrieval Equipment

o Picking Cart
o Order Picker Truck (for higher placed loads)
o Person-aboard Automated Storage/Retrieval Machine
• Captive aisle
• Free roaming
o (Robotic Retrieval)

 Stock-to-Operator Equipment
o Carousels
• Horizontal
• Vertical
• Independently Rotating Racks

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 o Miniload Automated Storage and Retrieval Machine
o Automatic Dispenser
o Productivity gains
• Allow for extensive parallelization of order retrievals
• Focus on extracting rather than traveling and searching

 Conveyors
o (Flat) Belt
o Roller
o Telescoping Belt
o Chute
o Sorting
• Deflector
• Push Diverter
• Pop-up Skewed Wheels
• Pop-up Roller
• Tilt tray
Remarks: Conveyors change the economics of travel. They can partition physically the
warehouse into zones

 Warehouse docks and dock-related equipment

o Warehouse docks: The facility interface with the shipping carriers
o Dock configurations and dimensioning

 Equipment facilitating the interfacing between docks and shipping carriers

o Dock levelers: compensate the height difference between the carrier platform and
the dock door
• Mobile yard ramps
• Permanent adjustable dock boards

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 • Truck levelers
• Scissors-type lifting docks
o Bumper pads: absorb the shock from the impact of the shipping trailer with the
dock walls (laminated rubber cushions)40,000 lb load traveling 4 mph =>
150,000 lb force
o Dock shelter: a flexible shield that when engaged to the carrier provides a closed-
environment interface between it and the inner area of the warehouseenergy
savings, increased safety, product protection, etc.

 Automatic Identification and Communication Equipment

Permits real-time, nearly flawless data collection and communication, and therefore, it
facilitates and increases the real-time awareness of the location, amount, origin,
destination and schedule of the material.

 Automatic Identification and Recognition

o Bar coding technology:
 Bar codes
 Bar code readers
 Bar code printers
o Optical character recognition
o Radio Frequency (RF) and Surface Accoustical Wave (SAW) tags
o Magnetic Stripes
o Machine Vision

 Automatic Paperless Communication

o RF data terminal
o Voice headset
o Light and Computer Aids

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o Smart card

 Personal Protective Equipment

o Hard hat
o Eye protection
o Hearing protection
o Dusk mask
o Work gloves
o Safety shoes
o Cold weather gear

 Emergency Equipment
o Sprinklers
o Fire extinguishers
o Evacuation routes
o Electrical panels
o First-aid supplies
o Alarms and phones
o Walkie Talkie

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  Manpower in Chennai Warehouse Division

Manpower set-up in Chennai Warehouse

Designation No of Posts No of employees
General Manager- South Division 1 1
Manager- Warehouse 1 1
Assistant Managers- Stores+Accounts+Reporting 3 2
Store Keepers- Supervisors 4 3
Assistant Store Keepers 8 7
Store Helpers[Contracted] 32 X 3 Shifts 28-29 per Shift
Security Supervisor 1 1
Security Guards [Contracted] 8 X 3 Shifts 8 Per shift
House Keeping [Contracted] 3 X 3 Shifts 3 Per Shift

 Organization Chart at Chennai Warehouse

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  Recording and Reporting

Keeping records and reporting to the authority is the last and important part of the
warehouse management where the quantity of materials received and distributed at the
reporting period is mentioned. It provides the materials management personnel the
exact picture of the materials consumption and surplus or shortage situation. Reporting
team ensure whether the central warehouses are maintaining store tickets and ledgers
properly in issuing, returning, etc. of the materials. It ensures maintaining of all sorts of
files related to receiving,issuing, returning; and supporting papers of the same, voiding
ticket etc. as per Mahindra Central Compliance team guideline.
 Coding and Classification of Materials:

A significant coding system is a system for identification of items and components by

symbols, letters, numbers or a combination of these elements, whereby each digit or

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sequence gives a complete and unique reference which cannot be confused with
another and can be recorded, retrieved and recognized throughout the enterprise.

The advantages of a significant coding system to an organization are:

 It avoids repeated use of long descriptive titles;

 It provides a unique code for each item and accurately identifies them;
 It can help in standardization and variety reduction and also prevent duplication
of items;
 It can be taught and thus can provide the organization with a common language;
 It can be used to categories goods which forms a convenient basis for sorting
andrecording of documents;
 It simplifies recording and is convenient for central analysis of different
warehouse records;
 It is an aid to all activities of materials management and control and in many
cases a prerequisite of, stock control systems;
 It can be used for financial record keeping;
 It can be employed for efficient order picking;
 It can be used by a warehouse location system;
 The system is flexible allowing for expansion and contraction

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Case Study:

To understand the concepts of Warehousing in terms of practical usage and to have

a glimpse into the how a real logistics company or organization uses Warehousing
Management techniques as a formidable tool to gain customer satisfaction,reduce
overall cost and increase efficiency and performance, I was shown about a
Warehousing / Stores & Line Feed data from Reporting team..

Based on the data shared by the team, below find the case study.

The Bosch Group is a leading global manufacturer of automotive and industrial

technology, consumer goods and building technology. India is a significant market
for the Bosch group, in view of its rapidly growing automotive market and
availability of manpower with high degree of engineering and technology skills

Bosch is also a leading supplier of technology and services in the areas of Mobility
Solutions, Industrial Technology, Consumer Goods, and Energy and Building

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Technology. Additionally, Bosch has in India the largest development center
outside Germany, for end to end engineering and technology solutions.

The Bosch Group operates in India through nine companies, viz, Bosch Limited,
Bosch Chassis Systems India Limited, Bosch Rexroth India Limited, Bosch
Engineering and Business Solutions Private Limited, Bosch Automotive Electronics
India Private Limited, Bosch Electrical Drives India Private Limited, BSH Home
Appliances Private Limited, ETAS Automotive India Private Ltd. and Robert Bosch
Automotive Steering India Pvt. Ltd. In India, Bosch set-up its manufacturing
operation in 1951, which has grown over the years to include 15 manufacturing
sites, and seven development and application centers. Bosch Group in India
employs over 30,000 associates and generated consolidated revenue of about
₨.17,022 crores in 2015 of which ₨. 12,100 crores from third party. The Group in
India has close to 14,000 research and development associates.

Bosch’s Warehouse:

The warehouse owned by the company is located in Hyderabad and was acquired
in 2009. The location of the warehouse was chosen for the following reasons:

 It is placed near the trucks route,

 There is an easy access to the facility,
 It has a parking area for the cars of the firm
In 2012 Bosch made agreement with Mahindra Logistics to manage its warehouse
division based on the contractual basis. Below find the findings at that time.

The building has 15000 square Feet; it has few big rooms for storing the products
(on shelves or on pallets), and offices for the whole firm. Even though they had
strong Check points and performance measurementsindices, they could not Control
the KPI's like Inventory Management, Order fulfillment & Warehouse performance.

We shall use for performance improvement as the performance indicators. The

purpose was to identify the poor performance inside the warehouse. As we

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mentioned above, they have used John M. Hill’s indicators to assess the
performance of the warehouse, grouped into three categories like “Inventory
Management”, “Warehouse Performance” and “Order Fulfilment” The values
written in green indicate that the operation is going smoothly and red means that
there are problems.

Problems and Causes:

Taking into account the red values from performance indicators and also the
warehouse process map, we have identified several problems regarding
warehousing, related to space usage, inventory management, warehouse
performance and order fulfilment (performance indicators), that are presented
below. Below find the Table with the Problem Area and its causes.

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  Solutions suggested:

 Space:
The main problem of the warehouse is the poor utilization of space. It can be solved by
breaking some walls so that to have only a room for storing the merchandise. One of the
archives, the two halls and one of the toilets should be eliminated. The offices of the
firm should be moved on one side of the warehouse, so that access to goods be direct.
The current Office of the Director should be divided in two halves: one used by the
director and the other by the accountant and moved on the left side of the warehouse.
These modifications would result in a gain of 55.83 sq.m. There should be two main
docks in the warehouse: one for receiving the products and one for delivering them.
They should be situated on opposite sides of the warehouse. In this way, there will be a
better access to all the products. Before making these modifications, the opinion of a
construction engineer should be taken into account. Another solution is related to the
fact that there are multiple flows which intersect each other. One solution whichwould
improve space utilization is a new design of flows inside the warehouse – it looks like

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possible to establish one different entry and one different exit for each stored product
category.

 Inventory Management:
“Dock to Stock Time” can be reduced by introducing portable barcode readers and a
barcode software. The time for entering the products or for preparing them for delivery
will be shortened also by solving the problem related to space. “Days on Hand”
indicator will have a lower value if contracts with suppliers are renegotiated and if are
kept only the ones who are able to deliver products fast. The firm should also use an
ABC analysis in order to know what products to place near the exit dock.

 Warehouse Performance:
The problems related to warehouse performance can be solved by improving the space
utilization and by introducing portable barcode readers. We recommend a performance
indicators continuous monitoring, in order to observe the improvements while they
appear.

 Order Fulfilment:
Delivery problems can be solved by collaborating with suppliers that have the
possibility to deliver merchandise fast or by investing in cars, and all that results from
this investment (hiring a driver). These solutions could be implemented, in our opinion,
in about 3 months, and this is because the whole architecture of the building has to be
changed.

Key value proposition initiated by Mahindra’s Logistics team.

 Lean organization structure with strong operating team to deliver

 Continuous productivity improvements demonstrated
 100% inventory ownership and stock accuracy
 Vendor owned MHE
 Flexibility in resources deployment

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  Implemented 5S standards

Key achievements post taking over the warehouse from Bosch ltd.

 Cleared VDA audit

 ISO certification (MLL VW)
 Achieved ‘0 downtime’ on first day
 99.99% inventory accuracy

Below find the snap shot about this case study in their Annual report of the year 2014.

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 Comparison before and After taking over the Warehouse from Bosch

HUs not found 0%

2%

Fullfillment of process audits 0% 93%

RCM fullfillment 100%

100%

kaizen/quarter 0% 55%

On time JIT call perfomence 100%

99%
100%
Value added service 100%

Inventory accuracy 100%

99%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

Before 2011 After 2012

Before and after Comparison

70

60

50

40
Axis Title

30

20

10

0
Vechicle TAT (in bound) in Overall 5S Implementaion Containers unloaded/day
Minitues

Conclusion:

The main solutions we propose regarding warehouse management are performance

indicators and process mapping. These two solutions complete each other. It is easier to
establish key performance indicators for a warehouse after a process map was drawn,
considering also other indicators used at international level. The process map is the
helicopter view needed for establishing relevant performance indicators.

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Performance indicators are useful for identifying the problems – red or abnormal values
of the indicators are as a control system for a warehouse.

In order to solve the problems, we have used a very simple methodology: identify the
causes of the problems and then try to diminish their impact or just eliminate the
causes. It is a cause-effect approach, easy to be applied by any manager.

Warehouse performance measurement means, in our opinion, discovering the problems

of the warehouse and solve them before is too late. It is a way to reduce costs by
improving operations that take place in a warehouse, and having low costs is an
essential feature of differentiating logistics firms. We applied the key performance
indicators to a small company, but they can be calculated also for large firms. Even on a
small scale, they helped us discover a lot of problems, out of which the poor utilization
of space was the essential one.

Learnings:

 Learned a lot about logistics and specifically about Warehouse Division

 The labors in the Hyderabad unit were not skilled and trained, so the material
handling is not efficient.
 They were working without motivation and with low Morel. Mahindra used
their sustainability methods and increase the welfare activities- Which
reduced Absenteeism and Attrition.
 The area of the Hyderabad location is around 15,000 Sq feet. The area was not
utilized efficiently for the present demand. Lay out of the Warehouse was
redesigned
 Multiple negotiations and Discussions happened with Suppliers and Vendors
for on time delivery of goods.
 Clients did not have bar coding facilities and they were still using old
traditional way of Tagging and clearing.
 The organization focuses on customer satisfaction and best and speed service.
 The major advantage is that the company as all largest service provider in
south India

Reference:

http://www.iamwire.com/2017/04/indian-logistics-industry-scenario/151331

http://economictimes.indiatimes.com/news/economy/policy/gst-to-boost-
warehousing-logistics-jll/articleshow/58186906.cms

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file:///C:/Users/sakaruna/Downloads/Mahindra%20Annual%20Review
%202016.pdf

http://ivcpl.in/achievements.html

http://www.thehindubusinessline.com/companies/mahindra-logistics-acquires-
stake-in-lords-freight/article6331897.ece

http://www.mahindra.com/news-room/press-release/1342761056

Thank you
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