Assessment of Freight Models/Contracts and Logistics Organization for a major Indian EPC company
Title: Assess the suitability of current freight models being used by different divisions and the feasibility of centralizing logistics organization in the company
Business Scenario:
- Company is into executing large infrastructure projects
- Company is divided into key divisions which handle logistics on their own and follow their own freight models for logistics movement
- The divisions include Procurement, Projects and Equipments, Building and Infrastructure, Power Division and Geography focused divisions
Our Solution:
- Understand business objectives and current logistics operations of all divisions
- Assessment of current freight models being used for different type of movements, by divisions
- Peer Group Analysis across 6-7 peer EPC companies to understand logistics organization and logistics best practices
- Assessment of improvement opportunities across divisions by consolidation and economies of scale, better visibility and control
- Recommendation of type of freight models and contracts to be used by divisions, products moved and type of movement
- Recommendation on centralization of logistics activities across divisions
Benefits:
- Estimated savings potential of 2-3% based on changes in freight models
- Anticipated better synergies due to centralization of some logistics activities