A consulting study done to outsource the logistics requirements of Ceat tyres.

1. Integrated Logistics
Solution
For
CEAT Ltd
By
SCM Solutions Pvt Ltd

2. Agenda
• CEAT’s Expectations
• Engagement Scope
• Warehousing model for CEAT
• Recommendation Details
– Site Selection& Distribution Network
– Warehouse Layout & Organization
– Warehouse Construction & Material Handling
Equipment
– IT Systems
– People
– SLAs
• SCMSOL profile

3. CEAT’s Expectations
Short-term
• Provide Facility for DC & CFA
• Provide Infrastructure DC & CFA
• Provide Operations Management
• Manage Primary and Secondary Distribution
• Management Information Visibility
Long-term
• Reduce costs
• Optimize networks
• Complete end- end logistics solution

4. Engagement Scope
• Warehousing for DC
• Warehousing for CFAs
• Primary Transportation from
– Factory to DC
– Sourcing Units to DC
• Secondary Transportation from
– DC to CFAs.
• Tertiary Transportation from
– CFA to local and upcountry dealers.

5. At DC level
• Collection (includes loading also) from factories.
• Set formation - The tyre has to be paired with the
proper tube and in some cases, even flap has to be
added.
• Strapping of the set - Three straps have to be put to
ensure that the set is in place. A strapping machine will
be used for the purpose.
• Inflation of the tube - The set formed has to be inflated
before dispatch. Inflation specifications would have to
be specified by the engineering department.
• Inventory Management Systems
• Generation of MIS reports in mentioned formats
• Dispatch to CFAs
• Generation of Dispatch challans
SLAs as per RFQ

6. At CFA level
• Storage of tyres and inventory management
• Billing / invoicing to local and upcountry dealers
• Dispatch of materials to dealers as per invoice
• Collection of payments from dealers, as per following mode
• Local dealers – cheque against delivery
• Upcountry dealers – advanced local cheque through
courier
• Deposit of cheque in company’s bank as per the credit due date
• Generating MIS reports in the mentioned format
• Providing support for sales tax assessments and other routine
assessments
• Keeping small vehicles for dispatch
• Unloading and loading of Vehicles
• Collection of VAT from dealers
• Claims management and Replacement of defective goods - Any
damaged tyres with the dealers have to be replaced once claim is
satisfied. The claim has to be settled in the specified time.
Whenever truck load of adjusted tyres is made, the load has to be
dispatched to Bhiwandi claim godown.
SLAs as per RFQ

7. Stacking Models

8. MHE (Optional)
Palletized Storage

9. MHE (Optional)
Heavy duty Steel Rack

10. MHE (Optional)
Tyre Storage Racks

11. Location Map
Suggested location-
Hosur

12. Location Map
Suggested location-
Sanathnagar

13. Location Map
Suggested location-
Adityapur

14. People
• Recruitment
– Recruitment is carried out at Regional & Local levels
– Job Rotation of existing employees across the group & the continuous recruitment provides
• Skilled manpower
• People with experience in Logistics & Supply Chain
• Capability to manage increased throughput
• Training
– Employees are trained during project phase
– Training as per SOP (Standard Operating Procedures)
– Periodic Training in line with QMS
– Initiatives like Kaizen, Lean Six Sigma
– Refresher Training
– Knowledge sharing on Best Practices across different industry verticals (being managed by
RLPL as a 3PL Service Provider)
• Retention
– Dedicated people on company rolls
– Welfare Facilities
– Reward & Recognition schemes
– Growth opportunities across different verticals being managed by Indo Arya Logistics

15. Key Reports
• MIS reports as Per RFQ
• Performance Report
• Operations level monitoring
• Decision Points
Solutions
WMS & Facility Management Solutions have inbuilt functionality to
release the above reports. This can be customized as per
requirement
Management Information System
IT Systems

16. SCM Solutions Pvt
Ltd
The Vital link in your Supply
Chain

17. Specialized verticals
• Auto Components (Milk Run, Merge-in-Transit, JIT delivery, Freight
transportation, VMI warehousing)
• Pharma and FMCG (Multi tier domestic distribution, reverse logistics,
inventory visibility, Order fulfillment)
• Convergence Industry ( Electronic and Entertainment Hardware,
Regional and Local warehousing, Order processing and Order
fulfillment)
• Light engineering & Switchgear ( Vendor relationship management,
vendor audit, Milk run, In-factory warehouse management, Packing,
Finished goods warehousing, kitting, Door-to-door delivery)
• Construction and Projects (ODC movement, DGR cargo movement,
project planning and implementation)
• Telecom (Freight Management, End-to-End project management for
site erections, project/steady state warehousing, domestic
transportation.

18. SCMSOLS approach to logistics outsourcing
Benchmark
Current
Practices
Technology/
Process
Assessment
Consolidate
Opportunities
In Logistics
Designing
Logistics
Outsourcing
Models
Contract
Management &
Implementation
Road Map
Transactional Relationships Strategic Partnership
Model
Organizations that Evolve from Transactional to
Strategic Partnership are Leaner & More
Profitable
Establish
Performance
Benchmarks

19. Global Logistics Trends
Geographic
Coverage
Expanding territories
for international
business
Service
Providing new service for
existing or new customers
Specialization
Growing the business
across industries and
business functions
SSP: Single service Provider
3PL:Third-Party Logistics
LLP: Lead Logistics Provider
SNSP: Supply Network Solutions Provider

20. Process Listing where SCMSOLS can partner with Principle for Outsourcing
Distribution Transportation Logistics Order Mgt. Materials Mgt International
Logistics
others
Channel mgmt and
strategy
Transport
Planning/Modeling
Inbound
logistic
Customer
Service
Demand Planning Custom Mgmt IT
Infrastructure
and Strategy
Warehousing Shipment Planning Outbound
logistics
Order Entry/
Order
Processing
Distribution
Requirements
Planning
Freight
forwarding
Outsourcing
opportunities
Cross-docking Carrier Selection/
Mgt
Reverse
logistics
Technical
Support
Purchasing/
Expediting
Break -bulk External
environment
scan
Out/In bound Mgt Kitting
/Subassemblie
s
Claims Mgt Inventory mgmt
Manpower
requirement
study
Track & Trace Logistics
performance
mgmt
Invoicing Inventory Accuracy &
Control
Industry
bench-
marking
Financial Mgt Network
design
Stores mgmt
Event Mgt
Logistics
organization

21. The key business areas.
 Supply Chain Functions
•Inventory Management, Put-away
and Pick and Pack
•Transportation, Cross Docking
and Home Delivery
•Reverse Logistics and Disposal
 Customer Order Management
•Order Processing Management
•Global Control Centre
•CSI Survey and Feedback
 Supply Network Solutions
•Proprietary IT System for
Interface and Data Analysis and
Supply Network Analysis and
Redesign
•Inventory Financing, Tariff and
Taxes Management
•Container Maximization and
Routing Optimization.
Total Door-to-Door Service
•Home Shopping Delivery
•Last Mile Delivery and
Return
•Web Solutions such as
Order Management
•Payment Solution such as
Escrow Service
•Call Centre Management
 Consultancy Service
•Piloting of Supply Chain Projects
•BPR
•Market Research

22. Breadth of Solutions
• IT Capabilities: A dedicated, Proprietary and integrated Management
Information System designed and developed specifically for the
logistics and supply chain industry
• Process Design Capabilities: Logistics Process and Network Analysis,
and Design expertise to optimise customers supply chain.
• Extensive Local Knowledge and Experience: Local professionals based
in the different countries are familiar with the local conditions and able
to deal with them competently
• Management Team: More that 150 years of experience in the supply
chain industry in both multinational and local companies
• Supply Chain Functions: Experience in NVOCC, air freight,
warehousing, inventory management, customs brokerage, local
transportation etc.
• Physical Network: Wholly- or majority-owned subsidiaries and more
than 100-long term partners
• Customer Base: Provides Supply Network Solutions to Major
customers.

24. Supply Chain Execution system to support your most
challenging integration needs
NOS Network Optimization System
NPS Network Planning System
FMS Freight Management System
WMS Warehouse Management System
TMS Transportation Mgmt System
OPS Order Processing System
ABS Advanced Billing System
GTS Global Tracking System
DSS Decision Support System
PMS Process Monitoring System
BIS Business Integration System
SCC System Control Centre

25. Process Solutions
Our Key Process Solutions are:
Integrated
Logistics
Solutions
Provider
Total Supply Chain Solutions
As a leading supply chain management solutions
provider, SCMSOLS has very focused solutions to meet
customer’s requirements

26. Supply Network Solutions
We partner our customers to optimize and manage their supply
network to achieve greater cost savings and operational
efficiencies.
• As a supply network solutions provider, our clients
outsource their whole supply chain process, and not
only specific functions.
• The key objective of supply network solutions is to
leverage the supply chain functions to design,
optimize and implement the client’s supply
network.
• The execution of supply chain functions, such as
customs brokerage, freight forwarding,
warehousing and transportation, is the basis of
supply network.
Process Solution - 1

27. Process Solution -2
Regional Distribution Centre
The management of centralizes inventory and related information,
and the regional distribution of products and/or component parts in
support of each country’s inventory need
•Range of Regional Distribution Centre Service
‾ Day-to-Day Operational Support
‾ Customs Clearance
‾Systems Integration
‾ Regional Air/Sea Freight Co-ordination
‾ Domestic Distribution
‾ Freight Movement tracking
‾ Systems Reporting and Analysis
• Various types of RDC
•Bonded facilities
•Non-bonded facilities
•FTZ facilities

28. Process Solution 3
Global Freight Management
A comprehensive international air and sea freight network in
major cities and countries, providing comprehensive air, sea
(FCL/LCL), projects and various transportation solution.
• Range of Freight Management Services.
‾ Strategic Supply Chain Re-engineering
‾ Day-to-day Operational support
‾ Systems Integration
‾ Global Carrier Tender and negotiation
‾ Staff Training
‾ Freight Movement Tracking
‾ Systems Reporting and Analysis
‾ Single Freight Payment
‾ Customer Service Support

29. Process Solution - 4
Parts Components Management
The management of centralized, time-sensitive parts and
components storage, and the regional distribution of these materials
in support of regional customer’s need. Handles end-to-end material
flow
• Range of Parts Management services:
‾ Kitting/ Bar-coding
‾ Labeling and invoicing
‾ Customs clearance and documentation
‾ Insurance
‾ Time sensitive transportation management
‾ Stock control
‾ Systems integration
‾ Key performance indicators
‾ Order procurement and fulfillment
‾ Reverse logistics and repair management

30. Process Solution - 5
Vendor Managed Inventory
The storage and management of
customer’s inventory as a vendor
operated hub for multi-vendor console
and JIT-basis delivery to the point of
production
• VMI services scope
‾ Full range of procurement service
‾ Warehousing and inventory
management
‾ Vendor inventory visibility
‾ Materials re-configuration
‾ Labeling
‾ Material preparation
‾ Duty Management
‾ Expediting urgent orders
‾ Transportation management
‾ Invoicing on customer’s behalf

31. Process Solution - 6
Manufacturing Hub Operations
Manufacturing hub allows efficient turnaround of raw materials supply
and finished goods distribution to and from the factory. Transport
scheduling and routing smoothen operation without building huge
inventory at production site.
• MHO services scope
‾ Raw materials / Finished goods
handling
‾ Products reconfiguration
‾ Systems integration
‾ Vehicle routing and simulation
‾ Labeling
‾ Kitting and packing
‾ Integrated billing
‾ Staff training

32. • IFB Autoliv, Bangalore
• Ranbaxy, All India
• Areva T&D (India) Pvt Ltd, Calcutta
• Aditya Birla Retail, Mangalore
• Mahindra& Mahindra, Mumbai.
• Titan Industries, Hosur
• Nitco Tiles, All India.
• Reliance Logistics, Pearson Project
• Indo Arya, Cold-Chain Market Study
Projects Under
Implementation

33. Thank you….
Saleesh S