Optimisation of inbound logistics and implementation of fixed vanning: to General motors India ltd.

Abstract

The inbound logistics of GMI was studied and the following recommendations were made in order to optimize 10gistics. Fixed vanning to be implemented to infuse predictability and ensure safety of the materials in transit. Establish system to pull material from hubs. Dispatches to be in terms of number of cars. GMI to negotiate window timings with the suppliers rather than the LLP Revise supplier rating system in order to reflect logistics concern Formulate specific formats for the various reports and fix the trucks picking up materials from each supplier The supply chain of GMI was found be between level 3 and level 4 of the supply chain maturity model. The logistics is in theory robust enough to handle weekly changes in plans and the plans in the form of schedules are shared with the suppliers too. Some level of lIT is also followed with some suppliers setting up warehouses to support lean operations. But this is essentially just transferring inventory. The proposal of fixed vanning was pursued further and vanning plans were devised for vehicles of the Gurgaon, Pune and Chennai hubs for a production of 90 cars. This is expected to drive schedules too and thus pull material into the warehouse. The annual value of materials damaged in transit due to improper stacking and overloading is expected to reduce by Rs.88 lakhs. Further, with the increase in direct routes, an additional savings of Rs.14.S lakhs is expected.