Case Study: Optimizing Dispatch Operations for One of India’s Largest Tyre Companies
Introduction:
Express3PL, a proficient third-party logistics (3PL) provider, partnered with a leading
player in the tyre manufacturing industry to enhance their distribution and warehousing
operations. Express 3PL’s scope included in-plant warehouse management of the
companies finished goods warehouse. The scope of activities included receipt from
production, warehousing, kitting, strapping, pre-dispatch inspection & loading.
Over a span of four years, the collaboration witnessed a remarkable transformation in
key operational aspects which has allowed its client to grow volumes without increasing
costs.
This case study delves into the journey of how the partnership yielded substantial
improvements in daily warehousing, dispatch volumes, and overall efficiency.
Challenges Faced:
Before engaging with Express3PL, the customer encountered several challenges that hindered their operational efficiency. These included limited handling capacities, suboptimal manpower productivity, inadequate utilization of material handling equipment (MHE), and lack of comprehensive coordination among stakeholders. These issues became particularly pronounced as daily volumes surged due to increased demand in both domestic and export markets.
Solutions Implemented:
Infrastructure Enhancement and Better Utilization:
Express3PL undertook significant infrastructure enhancements, not only expanding capacity but also strategically utilizing the infrastructure to enhance productivity for the client. This optimization of the existing infrastructure allowed for the efficient management of higher daily volumes.
Process Refinement:
By conducting a thorough analysis of existing processes, the 3PL team identified bottlenecks and areas for improvement. Advanced planning strategies were developed, and processes were streamlined to ensure seamless coordination from kitting to dispatch.
Enhanced Manpower Productivity and MHE Utilization:
To maximize operational efficiency, targeted training programs were implemented for the workforce. Manpower was trained on multitasking thereby enhancing the utilization of the workforce. This increased productivity by over 8%. Daily utilization of MHE’s were tracked to ensure day round efficiency.
Collaborative Coordination:
Express3PL facilitated enhanced coordination among stakeholders, including suppliers, manufacturers, and distributors. This collaborative approach ensured smoother information flow, enabling timely adjustments to be made based on real-time market demands.
Vehicle Loading TAT Improvement:
Express3PL worked on optimizing vehicle loading TAT. Improved loading processes reduced turnaround times, resulting in faster truck departures.
Safety Points Integration:
Safety measures were integrated across operations, including employee training, adherence to safety protocols, and implementing safety checkpoints at critical junctures.
Results Achieved:
Increased Daily Warehousing Capacity:
The partnership achieved a substantial increase in daily warehousing capacity, from 40,000 to 65,000 tires per day, enabled by the strategic optimization of existing infrastructure.
Enhanced Dispatch Efficiency:
Dispatch volumes soared from 40,000 to 70,000 tires per day due to streamlined processes, enhanced manpower productivity, and the optimal utilization of advanced MHEs.
Expanded OE & Export Operations:
OE and export dispatch volumes surged from 17,000 to 35,000 tires per day, demonstrating adaptability to varying market demands.
Optimal MHE Utilization:
The strategic use of advanced MHEs reduced idle time and improved overall handling efficiency, contributing significantly to operational growth.
Advanced Planning and Coordination:
Collaborative coordination ensured prompt adjustment to daily volume requirements, avoiding delays.
Enhanced Vehicle Loading TAT:
Vehicle loading TAT was significantly reduced, resulting in faster truck departures, lower detention cost and improved order fulfillment..
Conclusion:
The case study of the partnership between the client and Express3PL underscores the
transformative impact of effective 3PL operations. By addressing key challenges through
infrastructure enhancement, process refinement, workforce training, and collaborative
coordination, the partnership not only met increased daily volume demands but
exceeded expectations. The success story serves as a testament to the power of
strategic 3PL partnerships in driving operational excellence and achieving remarkable
growth.