Approach for Logistic Network Analysis for a leading Cement Manufacturer of India
Title: Designed a high level approach for Logistic Network Analysis for a leading cement manufacturer of India.
Business Scenario:
- Operations involved selling multiple brands which were transported through a multimode logistics network (rail,road,sea), either directly to customers or to 200 depots which served the customers
- Threat from regional players providing superior service levels and entry of MNC’s
- Incorrect Sourcing decisions(source, mode) to meet demand. Increased logistics costs
- Need to review the logistics network for increased logistic efficiencies/optimum service
Our Solution:
- A holistic approach was developed to analyze the logistic network for identifying opportunities
- Approach involved setting up of the network analysis process at the regional and national level
- Analysis areas included possible scenarios under operational as well as strategic domain
- Improvements were estimated to accrue from:
-Opportunities in the existing network
-Opportunities from localized increments to the existing network
-Opportunities from strategic and transformational changes to the network
- Solutioning involved baselining the current network and evaluating opportunity scenarios against the baselined network
Benefits:
- Structured process for evaluation of the network on a continuous basis
- Initial estimates of benefits from one region, during simulation phase, indicated a saving of ~4 crores