June 2015

Integrated Logistics Solutions

From the House of Tata

A DIESL Initiative
Content

1 Sector Watch 10 Face-to-Face

Retail Logistics FacetoFace
Logistics of retail sector is dynam- P Srinivas Rao, Sales Manager and
ic and concerned with managing P Jaya Prakash, Customer Support
the components of the logistics Manager of Voltas Ltd. talks about
mix which consist of...Read More their companys supply chain re-
quirements and their feedback on
DIESL.

6 Logistics Speak 13 Case Study

Efficient Consolidation of Case Study - Cost Optimiza-

Warehouse Space tion in Warehousing
There are significant operational DIESLs warehousing strategy and
and logistics savings factors asso- planning enabled 100% KPI
ciated with consolidating an oper- achievement at optimal cost to
ation. the client.

8 What we Offer 15 DIESL New Initiatives

International Logistics DIESL Warehouse Man-
Solutions agement System (WMS)
With International Logistics Solu- DIESLs WMS integrates and
tions, DIESL crosses geographical connects with Customers ERP
boundaries to enable organiza- to facilitate automation of
tions with their global logistical transactions in their ERP .
requirements.

DIESL @ Glance

About DIESL
Read this space to know more
about DIESL, its services & loca-
tions.
Sector Watch
Retail Logistics

Introduction

We all expect our vegetables to be fresh, the new mobiles to be available on launch day and our clothes to be
in good condition and ready to wear when we buy them. For a consumer it is a given that advertisement of
any new product itself means that the product is immediately available in the market. Consumer needs and
believe have changed and at the same time physical distribution of material has been replaced with logistics
and supply chain management.

Retail business consists of various entities. Retailers are involved in the selling of goods and services to the
consumers. They draw upon manufacturers to provide the necessary products. They outsource functions like
transportation, warehousing to third party logistics services providers. They also have a direct interest in the
logistics systems of their suppliers and other intermediaries. If a retailer is effective, but if its suppliers are
not, errors and delays in supply will impact the retailer and the retailers consumers, in terms of either higher
prices or stock-outs (no products available on the store shelves). Hence logistics of retail sector is dynamic
and concerned with managing the components of the logistics mix which consist of five components:

Storage facilities: Warehouses managed by retailers to enable them to keep stock in anticipation of or to
react to, demand for products.

Inventory: Stocks which are held by retailers to meet demand changes. It can be finished products and/or
component parts.

Transportation: Movement of goods from production to consumption. Retailers therefore have to man-
age multiple transport operations that might involve different forms of transport, different sizes of con-
tainers and vehicles and the scheduling and availability of drivers and vehicles.

Unitization and packaging: Consumers generally make purchase decisions based on product presentation
and packaging. Retailers are concerned to develop products that are easy to handle in logistics terms, do
not cost too much to package or handle, yet retain their selling ability on the shelves.

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 Communications: This is required to get products demand and supply pattern, volumes, stock, prices and
movements. Hence capturing data at appropriate points in the system and to use that information to
have a more efficient and effective logistics operation is a challenge

Fig - 1.1: The Management Task in Logistics

Complexities and Challenges of Retail Logistics

Elements of logistics are remarkably expensive, if not controlled effectively. Holding stock or inventory in
warehouses just in case it is needed is a highly costly activity. The stock itself is expensive and might not sell
or could become obsolete. Warehouses and distribution centers generally are expensive to build, operate
and maintain. Vehicle deployment cost for primary or secondary distribution is also high. Hence the real trick
is to make logistics simple and easy, day in and day out by meeting all the demands.

Another challenge in the retail logistics is planning of operations. A retailer may have thousands of stores in a
number of countries, with tens thousands of individual product lines. They may make millions of individual
sales per day. Utilizing data to ensure effective supply of product from supplier to retailers, shops and distri-
bution centers is not straight forward. This always consists of complexity and desire for the simplest possible
process. Thus ideally it is preferred if the entire supply chain can be optimized & managed as a single entity.

Reverse logistics is another major challenge in retail sector. Successful implementation of reverse logistics
networks requires many decisions relating to different levels such as strategic, tactical, and operational. The
design of the network is considered crucial in the decision making process, because numerous networks can
be observed that depend on the nature of the returned product, the recovery process (remanufacturing, re-
use, recycling), and on the forward channel (centralized, decentralized). Hence, the design of reverse logistics
network becomes a strategic issue in the retail sector.

Underdeveloped logistics infrastructure, absence of national cold chain network, lack of national distributions
and hubs, multiple and complex tax structures, lack of trained manpower are also some given challenges of
the industry which makes the logistics operations more complex and time consuming.

2
Outsourcing Scenario of Retail Logistics

Logistics Cost: Logistics cost in Retail industry accounts

for 10-12% of revenues. The cost of logistics
(warehousing and transportation costs) for a retail chain,
as a percentage of the cost of goods sold (COGS), is
about 6%. However, in India, logistics costs as a share of
COGS are three to five times higher. Supply chain costs as
a share of GDP are five percentage points higher than
other developed countries (7-8 %). Fig - 1.2: Overall Logistics Cost Break Up

Fig - 1.3: Inbound Logistics Cost Fig - 1.4: Outbound Logistics Cost

Average cost incurred at each interval Average time taken at each interval
expressed as a percent of sales

Fig - 1.5: Logistics Process Flow

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Current Outsourcing Scenario: In the past few years Indian retailers have started to outsource their logistics
operations to third party logistics companies. However out sourcing is limited to warehousing operations, ve-
hicle hire or manpower management at customer warehouse. Major ruling brands of retail sector are still
managing their logistics operations in house or by establishing their own logistics company to have a tight
control on the operations as well as on the cost. Medium and small level players have started to outsource
their business to local C&F agents. Some companies are also trying out pilot projects of outsourcing their en-
tire operations in smaller geographies. Brands which are in the business of direct selling are open towards
outsourcing but overall the sector is very sensitive towards logistics cost and hesitant towards outsourcing.

Benefits of Logistics Outsourcing:

With the given business challenges, an organized 3PL service provider is still capable of bringing innovation in
the supply chain model of its respective retailer.
Clear Communication and Visibility: A 3PL player coordinates between various entities such as vendors,
dealers and channel partners to have smooth flow of communication. With regular MIS reporting and
technological support a 3PL player brings visibility of stocks in the system.
Benefit of Infrastructure: A warehouse set up consists of various levels of operational and fixed costs
such as warehouse purchase or rental, equipment, staff deployment, transportation, MHEs, softwares like
inventory tracking, utilities, property taxes, security etc. 3PL service provider can easily share the benefit
of a consolidated multi-client warehouse by removing such duplication of resources.
Technology support: To get more visibility in the system tailor-made Enterprise Resource Planning (ERP),
Warehouse Management Systems (WMS), Transport Management Systems (TMS), track and trace solu-
tions are easily available with the organized 3PL vendors. Hence making fresh investments on IT support
can be eliminated.
Operational Planning: Companies having core competency in managing logistics operations are capable
of making effective transportation with route planning and network design to optimize inventory.
Flexible and customized solutions: Logistics companies offering end to end solutions are capable of mak-
ing customized solutions as per the customers need. In addition to regular warehousing and distribution,
unique services such as kitting and packaging, cash management, cash on delivery, data integration, ven-
dor consolidation etc. are now available with organized set of companies.

In addition to the above mentioned benefits, retail companies can seek the following benefits from their LSP.
Speed to market and guaranteed time / day definite delivery
Optimization on local and regional level, operational flexibility such as cross docking, just in time delivery,
milk run etc.
Enhancing visibility of product flow through track and trace, Radio Frequency Identification (RFID), tech-
nology support through last mile delivery
Capacity of COD, cheques collection and banking
On demand packing and kitting at the warehouse to support region specific marketing activities

4
Interesting Facts about the Indian Retail Industry

Article Reference:
Retail Logistics Report by Indian School of Management and Studies.
IBEF India Retail sector report 2015
Michael Page EF report 2013
Crisil Report on India Logistics Industry 2009

5
Logistics Speak
Efficient Consolidation of Warehousing Space

With an explosion of various brands and products in the market, indirectly end users are contributing to-
wards the demand for infrastructure improvement in logistics and supply chain. As a result of this logistics
companies are constantly evaluating their operating model, as they aspire to offer more efficient and cost
effective solutions to their customers. One of such strategic enabler is efficient consolidation of warehousing
space.
However consolidating a companys distribution operations is not a small undertaking. It affects every entity
attached to the channel such as customer, vendors and suppliers, employees and even the supply chain part-
ners, because all the entities are impacted by a decision to combine geographic locations, or even different
divisions of the same operation at one location. And with GST coming in, consolidation will become a strategy
decision for organizations to compete and be competitive in the future.

Economies of Scale
Any business which operates warehouses has two key ongoing requirements:

To maximize warehouse storage capacity with limited space availability

To maximize the efficiency of warehouse management processes

Manufacturers should be able to ship more production directly from the plant rather than having to rely on
outside storage or internal distribution centers. This would allow increased consolidation of outbound freight
at lower-rate truckloads along with reduced transportation costs for unloading partial shipments and waiting
time at customer docks. However if companies are looking for big time warehouse consolidation then hub
and spoke model is required for in-city and up-country distribution as last mile delivery within intra-city is not
always possible from a mother warehouse located at an outskirt area.

Infrastructure

A warehouse set up consist of various level (small and high) of operational and fixed costs such as warehouse
purchase or rental, equipment, staff deployment, transportation, MHEs, softwares like inventory tracking,
utilities, property taxes, security etc.

6
Consolidation can help in removing such duplication of resources; tangible materials can be strategically de-
ployed at other warehouse facilities or sold to recover the cost. This saved budget can be invested in other
upcoming facilities or improving existing ones.

For efficient consolidation of warehouse space one needs to adhere the following points:

Start thinking in 3D - Look at multi-level racking, for example; office area on mezzanine floor so that the
entire ground floor area can be utilized for stocking.

Organize around your pick schedule - Define your inventory in terms of Fast, Slow and Non-moving (FSN)
consignments.

Invest in technology and infrastructure - Automated or manual pick vehicles might be expensive to imple-
ment, but they can save 70% of lost expenditure.

Work with the seasons Season planning at least three months in advance is a must for efficient ware-
house utilization; else companies end up having multiple expensive storage locations.

Customer satisfaction Post consolidation, customer should be able to avail the benefits of a shared facil-
ity. With consolidation customers gets the opportunity to accept fewer, larger shipments. Most custom-
ers may like it as that they are able to get all their freight from a supplier on the same day.

There are significant operational and logistics savings factors associated with consolidating an operation. It
also presents the organization with the opportunity to improve throughput capacity, improves safety and
working conditions. However this herculean task of consolidation comes with its expected challenges of re-
sistance to change, difficulties involved in shutting down existing operations, excess manpower, etc. But if
such decisions are taken strategically then consolidation can leverage warehouse efficiency which in turn can
result in cost efficient supply chain set up for the customer.

Article Courtesy: The article has been is an excerpt from an article of Mr. Hitesh Athawasya (HeadOperations
Planning & Control) which was published in Logistics Times magazine

Authors Details:

Hitesh Athawasya
HeadOperations Planning & Control, Drive India Enterprise Solutions Limited

7
What We Offer
International Logistics Solutions

DIESL offers a bouquet of sourcing, logistics and supply chain management services that cater to
every business need. In this edition we introduce you to International Logistics Solutions
With International Logistics Solutions, DIESL crosses geographical boundaries to enable organizations with
their global logistical requirements. Clients get more from their supply chain while maintaining cost reduc-
tions and enjoying high service levels. DIESL caters to wide range of International Logistics Services such as
customer clearance, air shipments, containerized movement which includes Less than Container Load (LCL)
and Full Container Load (FCL). DIESL also uses technology to ensure that clients have real time visibility of
their shipments, especially when the goods transcend boundaries.

World Wide Reach and Presence

DIESL provides import and export of shipments in Africa, Australia, Europe, Far East Asia, Gulf, Indian Sub
continents, South America and USA. We have tied up with various shipping lines, NVOCC, freight forwarders,
consolidators and custom broker along with overseas agents across the globe to offer seamless and smooth
logistics operations to our customers .

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In India DIESL offers both air and sea import and export
services and custom clearance from the major logistics
hubs. These include sea ports and dry ports in Delhi, Kol-
kata, Mumbai, Bangalore and Chennai

Sectors Catered by ILS

With an experience of more than 7 years in the field of ex-
ports imports, DIESL primarily offers import services to various
leading telecom operators in India. DIESL also caters to other
industries such as chemicals, agricultural products, furniture,
heavy machineries, FMCD, Auto spare parts and garments to
fulfill their export import requirements.

Whats In It For You ?

9
Face - to - Face

Founded in India in 1954, Voltas is India's largest air conditioning company, and one of the
world's premier engineering solutions providers and project specialists. The company
offers engineering solutions for a wide spectrum of industries in areas such as heating,
ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machin-
ery, mining and construction equipment, water management & treatment, cold chain solu-
tions, building management systems, and indoor air quality.

What is the supply chain model of Voltas Ltd?

?
Our manufacturing base is at Pantnagar; here our supply chain model two essen-
tial elements raw materials and other parts coming into the Pantnagar factory,
and dispatch of finished goods from the factory to the warehouses across India (~
20 branch offices and warehouses across the country). From the warehouses,
there might be internal stock transfer to other warehouses as per requirement, to
the dealers.

P Srinivas Rao
Sales Manager

?
For companies pertaining to your sector, what are the challenges
Voltas Limited
that they face related to their supply chain?

For us, on-time delivery is an important aspect. E.g. if dealer places order in the morning, they expect their order to
reach them by 2 pm. Also in cities where we have warehouses the dealers place orders on one-on-one basis as per re-
quirement, which is more challenging. This apart, during peak sales season from March to June demand from dealers is
maximum. That is the time when expectations are high, sometimes with regular requirements of over-night delivery.
Another thing is the way consignment is handled. Transit damage might also pose a challenge, especially in the last
week or last 4-5 days of the peak season, when the pressure is at the most.

?
Do you outsource your supply chain requirements partially or completely?
What are the aspects of your supply chain that you outsource?

We outsource our logistics requirements completely. Products or parts that are outsourced from China are imported
and transported to the factory or mother warehouse by LSPs other than DIESL. Apart from that, for all finished goods
and spares for all types of customers primary or secondary supply chain is handled by DIESL.

10
 ?
How long has Voltas been associated with DIESL? How has your experience
with DIESL been?

DIESL has been associated with Voltas for around 6 years now. And apart from initial minor glitches of 4 months, the
experience has been very smooth. Minor issues may arise in daily operations, but nothing that is harmful or that can-
not be solved.

What were the challenges that you faced during the project
implementation with DIESL? How were these challenges ad-
dressed to? ?
During the initial phase, the handling activity was outsourced to a third party ven-
dor as a result of which there were some consignment-handling related issues. But
they were promptly resolved within a period of 4 months and everything was tak-
en up by DIESL.
P Jaya Prakash
Customer Support Manager

?
How has your partnership and association with DIESL benefitted Voltas Limited
Voltas?

One very good thing with DIESL which wasnt there with the earlier player is the location of the warehouse. With
DIESL, our warehouse and our office everything is located in the same compound within walking distance, things be-
come very easy for us. Whenever we have any issues, we can just walk up and talk about it and solve it.

Also, DIESL being a professional company, the interaction with us (their customer) as compared to that of a local player
is very good. All PODs and documentation is done very efficiently, so our job also becomes easier. Being a Tata compa-
ny, we have certain policies and rules to which we have to adhere. These things are better understood by DIESL rather
than a local logistics company.

?
Were the objectives with which Voltas partnered with DIESL been
fulfilled?

Yes definitely. Whenever we have to introduce and implement any new operational process, e.g. we started sticker
system for reverse logistics of spare parts, it is very easy to implement and standardize the processes with DIESL as it is
a national player. However with local players at each location, the task would have been very difficult. This apart the
monitoring of operations also happens in a more effective manner. E.g. when we have review meetings, taking MOMs
for the same, etc. does not happen with a local party.

Also, over the last few months there has been 98% matching of machines serial numbers in the dispatch list to the
serial numbers of machines provided by customers, which is a satisfying performance.

11
Going forward, what is the growth plan of Voltas? How and where
does DIESL fit in the plan your wish-list from DIESL in the process
of implementing those plans?
?
There is always a plan to keep growing; we are introducing a new product air coolers. With Voltas and DIESL working
together the responsibilities as well as challenges for DIESL will increase. And we think with our numbers growing cur-
rently also, DIESL has successfully handled the load very well. Going forward we are definitely looking forward to con-
tinuing with DIESL as we are sure DIESL will be able to handle the pressure fine. As compared to other LSPs, the way
they handle our products are very good. So damages are quite less. With regular trainings and with a professional atti-
tude DIESL has always been very good.

From your association with DIESL over the time, is there any
incident that stands out in your mind any practice you would
like to commend? ?
As already stated in Hyderabad the office and warehouse are in very close proximity; there is no gap between DIESL
and us in any aspect. Issues are discussed and solved immediately. This can be replicated all over. Also, the communi-
cation between DIESL and our dealers is really good. They are very responsive and accessible, and the attitude of the
team is very good (even in Vijayawada). When required by us, they have stayed and worked till midnight without com-
plaints. They are always ready for work. Even if we are late, they have always completed their responsibilities (billing
and dispatch) on time.

Lastly, amongst Voltas association with the various Logistics Service

Providers, which would be that one best practice that you would like
to be replicated by all? ?
While I was with Carrier, they used to generate a pick list before dispatch where serial number of all machines dis-
patched was mentioned. Whenever was a mis-match related issue, we could identify where the problem lay. It led to
100% accuracy gradually and it became easier for us during insurance or monetary claims. DIESL already follows this,
but the 1-2% lacking is due to heavy load especially in peak season when number of units goes up to several thou-
sands.

In Hyderabad, team DIESL considers us part of their team which is a fantastic attitude and should be replicated across
India. This solves 50% of the problems straightaway without effort. The monthly review meetings and MOM are very
good processes that can be followed across India.

12
11
CASE STUDY
DIESLs WAREHOUSING STRATEGY AND PLANNING ENABLED 100% KPI
ACHIEVEMENT AT OPTIMAL COST TO THE CLIENT

THE CLIENT

The company is one of the worlds largest direct selling companies which operate in more than 80 countries
and territories on six continents. With more than 450 unique, high-quality products the company is a well-
known brand in the areas of nutrition, wellness, beauty and home care.

CHALLENGES FACED BY CUSTOMER

The client has one national distribution center at North and four mother warehouses in India which also
serves city and cluster warehouses which are operated across India for home deliveries. The client was look-
ing for a 3PL service provider to manage the operations of the mother warehouse at Kolkata which was earli-
er operated by a local logistics service provider (LSP). Local LSP was not able to demonstrate high service
levels and was also managing the operations at a higher cost. They were not able to handle the volume dur-
ing peak seasons which tend to increase 10 times over and demand 24/7 operations. Hence to bring in effi-
ciency in the operations, based on stringent SLAs, the client chose DIESL as its logistics service provider.

3 Major requirements of the customer

DIESLS SUPPLY CHAIN SOLUTION

To optimize costs of operations at the warehouse and to improve service levels, DIESL brought in the follow-
ing changes:
Shift from standalone to shared warehouse: DIESL recommended that the client move their operations

13
 from a standalone warehouse to DIESLs shared facility so that client can take the benefits of larger oper-
ations at significantly less cost. In the shared facility, DIESL made provisions for normal and cool room
stocks and was also responsible for inventory management, pick- pack operations, receipt & dispatch etc.
Reduction in warehouse space and rental: DIESL Kolkata team conducted a dipstick study of the clients
operations and took a strategic decision to reduce warehouse space by utilizing vertical space (Ground +
3 heavy duty racking) which resulted in significant reduction in floor space from 52,000 square feet to
29,000 square feet. Reduction in warehouse rental was directly proportionate with warehouse
space. Earlier the client was paying per square feet rate for 52,000 square feet but with reduction in
warehouse space and with reduced per square feet rate the cost incurred by client for warehouse rental
was reduced by 45%. Also the pricing model of old C& F agent was at actuals plus management fees,
however DIESL started managing the business on per pallet pricing model which emerged as a more cost
effective model for the customer.
Reduction in Manpower cost: With efficient management of labour at the shared facility and deploy-
ment of electric stackers and proper planning, DIESL was able to achieve significant reduction in labour
count from 30 to 18, without hampering any manpower productivity.
Improved service level: To improve service levels, DIESL focused on operations-specific KPIs which were
not entirely getting captured earlier in the audit conducted by the client. The client audit was a 50 point
checklist covering many other aspects of facility maintenance. Conducting audits to maintain facility as
well as service levels was in scope of client, which is now ruled out with handover of logistics to DIESL.

GLIMPSE OF KOLKATA WAREHOUSE

FINAL OUTCOME
DIESL showcased improvement in service levels in the first 2 months of operations by managing 100%
achievement of KPIs such as location wise stock transfers, vehicle loading and unloading, vehicle GRM within
24 hours, inventory accuracy, home deliveries, product scanning, product adherence, MIS and documenta-
tion. With systematic KPI tracking & reporting by DIESL, the client is able to measure the efficiency of the
warehouse operations and has also given additional business at other locations in the country.

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NEW INITIATIVES @ DIESL

DIESLs WAREHOUSE MANAGEMENT SYSTEM

DIESLs Warehouse Management System (WMS) integrates and connects with Customers ERP to facilitate
automation of transactions in their ERP. It is an agile, pre-configured, process-driven, real time web-based
application. DIESL started working on WMS since 2012 and has till date, implemented WMS at 36 major
warehouses pertaining to various sectors such as FMCD, telecom, e-commerce, paper etc. This year DIESL will
be rolling out WMS in another 50 locations.

Why WMS?
Stock Accuracy WMS allows recording of in-bound as well as out-bound stocks. As a result there is no
variance in recording of inventories and data maintained is accurate.
Work Flow Methodology In supply chain management there are two types of essential flows (inward
and outward), however every business has its own processes. Embedding WMS in the supply chain man-
agement system ensures that the process work flow is well maintained.
Scan Based Operations in the absence of WMS, warehouses operate by recording the serial or batch
number of the products manually, which makes inventory accuracy prone to errors. But with implemen-
tation of WMS, this data is recorded with the help of scanners, due to which all data gets accurately cop-
ied from the bar code to the system or paper.
Improved Speed of Operations With mechanization of data and less errors, speed of operations has
improved. All inward stock is put away in GRN and pick-list is generated for outward stock, as a result of
which at any given time stock can be easily tracked and this saves a lot of time.
System Based Reports WMS negates the need for manual recording and data tracking.
Visibility on Demand With accurate and organized recording of data and integration between DIESLs
WMS and customers ERP, all knowledge remains updated and is accessible on demand at real time or
otherwise.

15
Salient Features of WMS
WMS enables mapping of business processes, linking of functionalities, creating documents, monitoring ac-
tivities and configuring KPIs.
Built by Industry WMS delivers industry-specific functionality and supports processes that are critical to
the customers business. As a result the customer often does not require additional expensive customiza-
tion.
Built on Open Standards WMS integration with customers systems and processes enables secure ac-
cess of information from a wide range of browsers and devices.
Built to Work Beautifully Intuitive, responsive and elegant user experience design allows WMS applica-
tions to adapt to the customers processes and work the way they do.
Implementation Partner The backend support and help desk is managed by Tata Consultancy Services.
Network Architecture All types and levels of data are connected to each other so that the entire infor-
mation is accessible in a consolidated manner.
Open Connectivity The software is independent of any other database or operating systems.
Database Integration WMS is linked to the customer ERP, so that any changes and updates on one au-
tomatically get reflected in the other.
Graphical Representation Data and records get graphically represented, becoming more comprehendi-
ble and crisp.

WMS In-Bound Work Flow

Scan to Inward and GRN
Put Away and Update
Location
Stock Status in WMS

WMS Out-Bound Work Flow

Scan and Pick for Dis-
patch
Update Shipment Details
Order Update in Custom-
er ERP

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Pre-requisite of WMS
Availability of inventory master
Knowledge of warehouse layout and product details e.g. whether sellable, damaged, pick-to, racked, etc.
Presence of item and serial number barcode
HHT Scanner or Wired Scanner
One time scan of entire inventory (for uploading in WMS)
Decision on and finalization of in-out strategy (FEFO/FIFO/FMFO)
Stable connectivity (ILL or MPLS)

General Challenges Faced While Implementing MWS

The logistics industry in India is highly fragmented and is predominantly managed by local C & F agents at
various locations of the country. Most of the core operational processes are manually driven and 100 percent
automation of systems has still not found acceptance with the ground staff for various reasons. DIESL also
faced similar challenges and has successfully overcome the problems while implementing WMS in its ware-
houses. Some of the major challenges are as follows:
Unskilled Manpower As a software, WMS demands a systematic process for every small action taken in
a warehouse. The entire software is integrated in a way that it can run as per the warehouse floor plan.
Regular activities like inventory picking or storage needs to be done as per the system generated guide-
lines. For ground operations such as picking, scanning of material, the deployed unskilled manpower usu-
ally dont adhere to system based guidelines and believe in following the old manual processes. Under-
standing of software specific terminology becomes another challenge for the labor running the opera-
tions.
Warehouse at Remote Locations Location of a warehouse is always decided as per the customers op-
erational need. Due to poor logistics infrastructure such as non-availability of logistics parks it gets diffi-
cult to implement WMS on the sites which are situated at remote locations with no IT connectivity.
Non Acceptance of Software - One of the advantages of automation is optimization on manpower de-
ployment cost. Hence roll out of such software sometimes leads non acceptance by ground staff which
further impacts day to day operations.
DIESL Has Taken Specific Steps To Address These Challenges:
Training sessions on WMS have been conducted at various warehouse locations to explain the software
and process. Software manuals, video clips have been designed and provided to all warehouse managers
as a reference tool. Zonal champs and branch champs are identified to give WMS training to the new em-
ployees at their respective locations.

17
 The software has been tweaked to simplify the system for quicker adoption by the warehouse staff.
To increase usage of WMS, roll out and adoption of the software has been assigned in the KRAs of ware-
house managers and their teams such as data entry operators, warehouse supervisors etc.
Additional ground staffs which are identified post implementation of WMS are re-assigned to other ware-
house facilities to control unemployment.
Automation Advantages with WMS
Deploys over existing LAN/WAN infrastructure
Simplifies user-input and elimination of manual data entry
Improves accuracy of information entered into the system
Allows seamless interface with other systems
Facilitates real-time information sharing with back-office databases
Provides visual information to improve efficiency
Allows customization if need be
Benefits to the Customer
Apart from the automation advantages WMS will benefit the customers in several ways:
Inventory accuracy and turns
Space utilization and stock rotation
Order, lot and serial number tracking
Backorder handling
Cross-docking
Labor and equipment productivity
Performance measurement
Enhanced customer service

18
Case Study

The client is the fifth largest integrated brand watch manufacturer in the world and also one of the leading
jewellery brands in India over the past few years. With over 1100 retail stores, 400 exclusive showrooms and
more than 740 after-sales-service centers, the client has Indias largest retail network spanning over 220
towns.
Challenge Faced
With a total warehouse space of 5000 square feet and approximately 4500 SKUs, DIESL started managing the
clients warehousing operations at Pune. Initially it was a big challenge to monitor and control inventory at
the warehouse, due to the following challenges:
Huge business volume and with large number of SKUs and manual racking system
Most of the times material was not traceable due unavailability of location matrix
Newly deployed laborers were not able to identify the material as storage location was not mentioned in
clients ERP pick list. This was leading to dependency on old laborers. Picking and put away was also a
challenge.

Solution Offered:
To address the operational challenges, DIESL suggested that the client implement Warehouse Management
System at their Pune warehouse. For this, DIESLs IT and operations team conducted a detailed study for 7
days, after which WMS was implemented with 3 to 4 working days. Implementation of WMS led to the fol-
lowing benefits.

With WMS in place inventory is now traceable

Newly deployed laborers are now are able to easily pick material from the very first day of joining due to
which dependency on old laborers has now diminished.
With the help of WMS, location matrix is available to the central operations team
Issues pertaining to material picking & put away have been resolved completely

Final Outcome
The client is very satisfied with the day to day operations of the warehouse. In 2014 the team at Pune ware-
house were appreciated by the client for being the Best Warehouse in west zone. The client also requested
DIESL to offer its IT solutions at other warehouse facilities as well.

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DIESL @ Glance

Our Services
Sourcing & Distribution l Warehouse Management Services l Distribution Management Services l
International Logistics Services I Kitting & Packaging l Value Added Services (VAS) l Industrial and Site
Logistics Services I Consignment Sales I Spare Parts Management

Contact Us
Corporate &
West Zonal Office
7, Kamla Executive Park,
Off Andheri Kurla road,
Andheri East,
Mumbai400059
Board Line: 022-6777 9000
North Zonal Office East Zonal Office South Zonal Office
B-1/G-2, 2nd Floor, 2nd Floor, Unit No-203, 86A V.P Chambers, 2nd Floor,
Topsia Road, No. 589, 1st Cross, 3rd
Mohan Cooperative Indus-
Haute Street, Block, Koramanga-
trial Estate, Mathura Road,
la, Bangalore,
New Delhi110044 Kolkata700046
Karnataka560034
Board Line : 011-6608 3300 Board Line : 033-6607 0666

Email: contact.us@driveindia.co.in I 9867273141 I Website: www.diesl.in

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