Case Study

RAPID METRORAIL GURGAON LIMITED (RMGL)
INVENTORY RECORDS ON PURCHASE RATE & SALES RATE

Business Challenge
A very big challenge of warehouse is to maintain Inventory in both purchase & sales rate as per the day. 80% of components (Signalling, Rolling Stock and Routing) in Warehouse are imported from Global Suppliers to Siemens.

Solution :

• Our system reports to Siemens in both Purchase Value (values of material at the date of import) & Sales Values (Value of material today).
• The challenge to organization maintained an Inventory in different Values. Import Exchange Rate of foreign currencies is changed frequently.
• PWS Reports convert into INR. Warehouse Executive can enter into system as per ASN/PO in any currency. System reports as per CBEC exchange rates.

SUB CONTRACTOR PROCESS
DIFFERENT UNIT OF MEASUREMENT

Business Challenge
A very big challenge in this kind of warehouse is that the Inventory can be maintained in different unit of measures in different Places. Form Client to Warehouse Client's vendors is sending Packing List/Invoice in terms of Metric Tons/FLP. Warehouse to Cutting Contractor Contractor pick a FLP in terms of number of pieces. MRS/Sales order received from end Customer is in terms of number of pieces in CTL. This will be challenge to any organization maintained an Inventory in different UOM.

Solution :

• Maintained Inventory in three UOM in all places to maintained accurate inventory.
• PWS have converted into all the different UOM and all places.
• Warehouse Executive can enter into system in any UOM and system will convert into all three UOM.

Business Challenges

• Decentralized warehouse resulting in additional administrative cost
• Difficult to manage number of warehouses distantly located
• Heavy investment needed to hold inventory at different location in larger lots
• Supply constraints in the existing market leading to high prices
• Difficult to maintain high level efficiency

Solution

• Partnered with Orsay to break bulk warehousing and conduct RFP for a centralized warehouse for east region.
• Warehouse to be located in the most centrally located position to ease distribution, routing and scheduling.
• Orsay's decision to send RFP to third party service providers to build as well as manage warehouse operations.
• Detailed RFP prepared in the form of techno-commercial proposal with details like warehouse equipment, no. of employees, storage systems, IT facilities, quality of construction etc.

Result

• High level of participation with 8 service providers clearing the final quotation round-which broke market capacity barrier
• Transport facilities more efficient and optimally used.
• Reduction in administrative and operating costs i.e. remuneration, cost of equipment etc.
• Success of event resulted in repeating the RFP process for west, north and south Zones

Business Challenges

• Complex supply chain with presence in several locations Inadequate tools and processes to manage spend for the large amount of scrap processed at each plant
• Cartel formation among most of the scrap buyers resulting in lower rates
• Limited number of buyers interested for low volumes

Solution

• Deployed Orsay E-sourcing services to automate manual processes, identify suppliers and conduct a forward auction
• Solution used to implement best in class category specific template and processes to create effective market making resulting in participation of 5 buyers located cross country
• Forward auction conducted for lots with ranks and lead bids

Result

• Incremental savings of 3-4 percent from incumbent suppliers over RFQ
• Standardization of sourcing related templates across all locations
• Reduced cycle time for sales activities (up to 30 %)
• Incorporated best practices like lotting strategy and negotiation formats Significant overall profit increase to the tune of 70%