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%