A PROJECTREPORT ON

TO STUDY OF WAREHOUSE
OPERATIONS IN

‘ MAHINDRA LOGISTICS LIMITED’

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FSTUDYULFILLMENT OF
THE COURSE BACHELOR OF
BUSINESS ADMINISTRATION BY
(SUJAL R. PHAND)
SEAT NO:
IB23-243041
BBA-IB Sem-III

UNDER THE GUIDANCE OF PROJECT GUIDE

PROF. RESHMA AWATI

MARATHWADA MITRA MANDAL’s COLLEGE

OF COMMERCE, PUNE 302/A, DECCAN
GYMKHANA, PUNE-411004
YEAR 2023-24
 DECLARATION

This is to certify that the project-work titled “STUDY OF WAREHOUSE

OPERATIONS IN MAHINDRA LOGISTICS LIMITED” has been
completed satisfactorily and submitted in partial fulfillment of Bachelor
Degree in Business Administration of Savitribai Phule Pune University for
the academicyear 2023-24 by the following student of MARATHAWADA
MITRA MANDAL’s COLLEGE OF COMMERCE, PUNE 411004. My
intention to understand this project lies towards enhancing my knowledge
in the field of Marketing Management.

PROJECT GUIDE HOD PRINCIPAL

Reshma Awati Dr. Ashwini Kulkarni Dr. Devidas Golhar
 ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Savitribai Phule Pune

University, Principal- Dr. Devidas Golhar and Marathwada Mitra Mandal’s
college of Commerce for giving me the opportunity to prepare and present
this report.

“There is a good saying that the work is successfully completed if the person
is guided properly at the right time by the right person”, with that the good
opportunities that we receive as well as the efficient supervision and the most
valuable the internal guidance.

Hereby, I would like to express my deep gratitude towards my project guide

Prof. Reshma Awati, who helped and guided me in project work. Her
encouragement and whole-hearted cooperation throughout the process helped
me in completing the project.

Last but not the least I would like to thank my family and friends for their
encouragement and direct or indirect support in completion of the project.

SUJAL RANGNATH PHAND

SY BBA-IB
 Abstract

Mahindra Logistics entered the booming logistics industry in 2000 as a captive entity
servicing the needs of our rapidly growing Automotive and Farm sectors. They branched
out and moved beyond a decade ago. Today, Mahindra Logistics is a stand-alone company
that services over 200 large corporate customers by deploying 25,000 vehicles a month,
and five million square feet of warehouse space. They are today India's leading integrated
third party logistics service brand, with 13 offices, over 88 operating locations across the
country, and revenues in excess of INR 17500 million.

They manage close to 5 million sq. ft. of warehouse space at multiple locations across the
country. These include a mix of built-to-suit, dedicated and multi-user warehouses. Their
warehouse operations use latest and proprietary technologies for improving productivity
and increasing efficiency. Mahindra’s system runs on a structured process flow for each
sub operation and for tracking metrics. Technologies like Clean Sheet for process wise
manpower requirement, layout optimizer for optimizing layouts, Knap Sack for optimal
storage pattern analysis and Customized MHEs etc. are used on a regular basis across the
network

Warehouses are usually large plain buildings used for commercial purposes for storage
of goods and are commonly used by exporters, importers, wholesalers, manufacturers etc.
Warehouses are crucial components of most modern supply chains and are likely to be
involved in various stages of the sourcing, production and distribution of goods, from the
handling of raw materials and work-in-progress through to finished products. This study
was done based on the data provided by Mahindra Logistics Reporting team of an
achievement they made on a 3rd party contracted warehouse in Hyderabad. Warehouse
management is concerned with ensuring that all the activities involved in warehousing are
carried out efficiently and effectively by seeking to eliminate waste from activities that add
cost to the supply chain, while maximizing those areas that add value. Mahindra Logistics
has developed and implemented its own management concepts in their Client’s Warehouse
in order for it to run smoothly and accomplish the vision, goals and objectives it has set
forth by their client.
 INDEX

Contents Page No
Introduction to Logistics 5
Importance of the Study 10
Industry Overview 11
Company Profile- The Group 15
Mahindra Logistics Limited 17
Objective of the Study 29
Scope of the Study 30
Limitations of the Study 31
Research Methodology 32
Data Collection 33
Ware housing 34
Functions of Warehousing 39
Mahindra's Warehouse 44
Case Study 62
Conclusion 67
Reference 68
 INTRODUCTION TO LOGISTICS

Logistics is a broad, far-reaching function which has a major impact on a society’s

standard of living. In a modern society, we have come to expect excellent logistics services,
and tend to notice logistics only when there is a problem.

• The difficulty in shopping for food, clothing, and other items if logistics systems do
not conveniently bring all of those goods or items together in one place, such as a
single store or a mall.
• The challenge in locating the proper size or style of an item if logistical systems do
not provide for a wide mix of products, colors, sizes, and styles through the
assortment process.
• The frustration of going to store to purchase an advertised item, only to find out the
store’s shipment is late arriving.
Logistics is called by the many names, including the following:

• Business logistics
• Distribution
• Logistical management
• Supply chain management
• Supply management

What these terms have in common is that they deal with the management of the flow
of goods or materials from one point of origin to point of consumption, and in some cases
even to the point of disposal.

The Council of Logistics Management (CLM) describes logistics management as

“The process of planning, implementing and controlling the efficient, effective flow and
storage of goods, services, and related information from point of origin to the point of
consumption for the purpose of conforming to customer requirements.”
Key Logistics Activities
Outlined below are the key activities required to facilitate the flow of a product from
point of origin to point of consumption. All of these activities, listed below, may be
considered part of the overall logistics process.

• Customer service
• Demand forecasting/planning
• Inventory management
• Logistics communication
• Material handling
• Order processing
• Packaging
• Plant and warehouse site selection
• Procurement
• Return goods handling
• Traffic and transportation
• Warehousing and storage

While all organization may not explicitly consider these activities to be part of logistics
activities, each activity affects the logistics process.

The operating responsibility of logistics is the geographical repositioning of raw

materials, work in process, and finished inventories where required at the lowest cost
possible. Logistics is practiced for ages since organized activity began. Without logistics
support no activity can be performed to meet defined goal. The current challenge is to
perform logistics scientifically in order to optimize benefits to the organization. Logistics
is a planning function of management. Logistics function is concerned with taking
products and services where they are needed and when they are needed.
FIGURE:
 IMPORTANCE OF THE STUDY

Mahindra has traditionally seen warehouse function as ‘profit center’ and not as a ‘cost
center’. Hence, efficient and effective warehouse management has been a crucial roles to
play for this organization and it has acted as a profit center for this organization. Warehouse
Management provides maximum profitability with the minimum investment through
ordering cost and carrying of materials.

To understand how Mahindra is so successful in their Warehouse Management operation

and how they sustain the consistency in performance. Performance refers to the way in
which work is done. There can be a good performance or a poor one on an improved
performance. It is to understand the process and to quantifying the efficiency and
effectiveness of an action or activity by the Warehouse Management team.
 INDUSTRY OVERVIEW

Logistics is regarded as the backbone of the economy, providing efficient and

cost effective flow of goods on which other commercial sectors depend.
Logistic industry in India is evolving rapidly, it is the interplay of infrastructure,
technology and new types of service providers, which defines whether the
logistic industry is able to help its customers reduce their costs in logistic sector
and provide effective services.

Despite of the weak economic sentiments, the logistics industry continues to

witness growth due to the growth in retail, e-commerce and manufacturing
sectors. The Global Logistics sector was expected to grow 10-15% in the period
2013-14. Logistics industry is expected to reach over USD 2 billion by 2019.
Rise of e-commerce logistics and increased domestic consumption will lead the
way for the industry in the coming years. With a promise of growth and
improvements, the service oriented logistics industry is ready to expand beyond
the horizons in the latter half of this decade.

1. Challenges faced by logistics industry in India:

The most essential challenge faced by the industry today is insufficient integration of
transport networks, information technology and warehousing & distribution facilities.
Regulations exist at a number of different tiers, is imposed by national, regional and local
authorities. However, the regulations differ from city to city, hindering the creation of
national networks.
 Trained Manpower is essential both for the third party logistics sector as well as the
manufacturing and retailing sectors, which is very weak at a practical level, i.e., IT, driving
and warehouse as well as at a higher strategic level. The disorganized nature of the logistics
sector in India, its perception as a manpower-heavy industry and lack of adequate training
institutions has led to a shortfall in skilled management and client service personnel. There
is a lack of IT standard, equipment and poor systems integration.

Poor facilities and management are the reason for high levels of loss, damage and
deterioration of stock, mainly in the perishables sector. Part of the problem is insufficient
specialist equipment, i.e. proper refrigerated storage and containers, but it is also partly
down to lack of training. The practitioners and the academicians are now aware of the
importance of logistics and supply chain; however the field is still under penetrated as far
as research is concerned. It is essential to prioritize research and development so that the
weaknesses in the industry can be taken care of and improved.

2. Future prospects:

The logistics firms are moving from a traditional setup to the integration of IT and
technology to their operations to reduce the costs incurred as well as to meet the service
demands. The growth of the Indian logistics sector depends upon its soft infrastructure like
education, training and policy framework as much as the hard infrastructure.

To support India’s fast paced economy growth of logistics industry is very essential. It
is estimated that the Indian logistics industry will continue to show robust growth of 10-
15% annually, leading the pace of growth of the economy at large.

The global economic outlook, indeed that of India is expected to significantly improve
as India Inc begins to tackle the economic downturn. With a new government many policies
are expected to be implemented which will give a fresh impetus to India’s growth engine
particularly in the corporate and SME sector which in turn will expand demand for the
logistics sector.

With the implementation of GST, the logistics companies, which are currently forced to
set up many small warehouses across multiple cities can set up just a few, big warehouses
region wise and can follow the hub-and-spoke model for freight movement from the
warehouses to the different manufacturing plants, wholesale outlets, retail outlets and the
various POS. This growth is backed by the boom in the e-commerce sector and
expansionary policies of the FMCG firms.

This has increased the service geography of the logistics firms but they also have to meet
the demands of quick delivery and tight service level agreements. The industry has moved
from being just a service provider to the position which provides end to end supply chain
solutions to their customers. Thus, all this has paved the way for further growth of Logistics
and Warehousing industry in the coming years.

3. Few trends in India:

• To achieve higher productivity and efficiencies businesses will need to

AUTOMATE some of their supply chain processes. Warehousing, for instance, has
an enormous potential to benefit from automation. With Amazon using its Robotics
division to help with picking orders, restocking and shelving, there’s a lot of buzz
about robots replacing employees. Our take on that is robotics, and other forms of
automation will emerge as a very attractive option. However, they will collaborate
with employees rather than replace them.
• To achieve higher productivity and efficiencies businesses will need to
AUTOMATE some of their supply chain processes. Warehousing, for instance, has
an enormous potential to benefit from automation. With Amazon using its Robotics
division to help with picking orders, restocking and shelving, there’s a lot of buzz
about robots replacing employees. Our take on that is robotics, and other forms of
automation will emerge as a very attractive option. However, they will collaborate
with employees rather than replace them
• E-COMMERCE has been changing the rules of logistics and transportation in the
past and will continue to steamroll in 2017, with Amazon leading the way, be it with
 robotics-driven warehouse operations or setting up new shipping routes. Traditional
logistics providers will need to keep pace.
• FREIGHT volumes in shipping will continue to be high, despite rates going up.
Global air freight tonnage is expected to show an upward trend, buoyed by the
growth showed in 2016. Truckload volumes are also expected to go up.
• As promised by the Indian government last year, HIGHWAY construction has
received a boost and will remain a focus in 2017, strengthening road infrastructure
in the country
• Businesses will prefer to engage INTEGRATED SERVICE PROVIDERS that can
manage end-to-end logistics and transport, and bring in better control, visibility and
efficiencies amid chaos in the business environment.
• As consolidation happens, the global transport and logistics industry will be about a
few large providers and their success will depend on their KNOWLEDGE of the
local markets they operate in. This trend will extend well beyond 2017.
• SUPPLY CHAIN DEMANDS will be focused on ensuring on-time last-mile
deliveries to keep pace with the rise of disruptors and unconventional business
models. Here’s where integrated logistics service providers with a sound
understanding of global and local markets will come in hand.
• India will soon see the emergence of WAREHOUSING HUBS as a result of the
implementation of GST in 2017. Some of the cities where these hubs are likely to
come up are Bhubaneshwar, Coimbatore, Goa, Guwahati, Jaipur, Nagpur, Ranchi,
Vijayawada and so forth
• As the rest of the world goes mobile, the transport and logistics providers will look
at integrating MOBILE applications to their Transport or Warehousing Management
Systems to provide smarter solutions to their clients.
 COMPANY PROFILE

The Group:

The Mahindra Group is an Indian multinational conglomerate holding company

headquartered at Mahindra Towers in Mumbai, India, with operations in over 100
countries around the globe. The group has a presence in aerospace, agribusiness,
aftermarket, automotive, components, construction equipment, defense, energy, farm
equipment, finance and insurance, industrial equipment, information technology, leisure
and hospitality, logistics, real estate, retail, and two wheelers. It is considered to be one
of the most reputable Indian industrial houses with market leadership in utility vehicle
as well as tractors in India.

Mahindra & Mahindra is a part of the US$ 17.8 billion global Mahindra Group
headquartered in Mumbai, India, with a presence in over 100 countries and employing
over 2,00,000 people. The Group’s operations span 20 key industries across 10 sectors

The Mahindra Group has consistently created value for all stakeholders. The total Market
Capitalization of the Group has increased by 108 times in the last 21 years and by 23
times in the last 11 years.
 Below mentioned some Key figures of improvement from the group:

Their core values are aligned with sustainable growth that is in harmony with the
environment and society. They have built a green revenue portfolio of over US$ 393
million and have proactively been addressing issues pertaining to Sustainability. A water
positive group. Mahindra is also the first Indian Company to sign up to EP-100, a new
initiative to double energy productivity by 2030 which is developed and administered by
The Climate Group. As per the last Annual report [2022-2023], they will continue to
invest in technologies that increase energy efficiency and enhance their use of renewable
energy. Mahindra Group also focus on increasing recycling, reducing waste and
restricting the use of hazardous substances in their manufacturing activities.
 The Mahindra Logistics Limited

Mahindra Logistics Ltd. provides logistic services. The Company offers services such as
freight transportation, warehousing and distribution, brokerage, supply chain solutions,
and industry sector solutions. Mahindra logistics belongs to the 17.8 billion Dollars’
worth Mahindra Group with the vision of becoming a leading global 3PL player.

A Company with strong parentage & brand Subsidiaries which has operations span in
19 industries and 100+ countries employing over 2,00,000 people and growing.

Mahindra logistics limited [MLL] was formed with a focus on Rural Transportation
needs. The Scope thereafter, was widened to transportation of goods, warehousing and
transport services for the corporate employees. The Organization was incorporated as
limited company and Rechristened as Mahindra logistics limited. This paradigm shift
was accompanied with and increased focus on building Supply chain Management
Capabilities in Automobile and other industries coupled with IT infrastructure
deployment.

The year 2008 marked the involvement of Mahindra Logistics Limited with a host of
customers within the Mahindra Group by meeting all the supply chain needs like inbound
and outbound logistics, inter-plant movement, warehousing, linefeed, Freight forwarding
and value added services among other solutions.

As per Mahindra logistics aggressive expansion they have partnered with two other
logistics to serve clients in all needs in Logistics. MLL’s Subsidiaries are 2 x 2 logistics
Pvt Ltd and Lords Freight [India] Pvt Ltd.
 1. 2x2 Logistics

Mahindra Logistics has partnered with Indian Vehicle Carriers Pvt. Ltd. (IVC) to form a
new company called ‘2x2 Logistics’ offering automotive outbound logistics solutions to
four-wheeler and two-wheeler industries.

This is the first time that MLL has added significant assets to its outbound business - 100
vehicle carriers to begin with and an intention to ramp up capacity shortly. MLL has a
majority stake in 2x2 Logistics. The new company will offer global standards of service
and technology with a special focus on innovative designs, highest degree of visibility
and quality control. This partnership will strengthen MLL’s existing pan India network
and freely allow assets to operate thereby bridging the gap between demand and supply.

It will also allow Mahindra logistics limited to fulfil one of its core values of considering
every customer a partner, evolving to make every customer a co-owner.

Mumbai based IVC is one of the leading vehicle carrier solution providers in India and
has over three decades of experience in catering to automobile manufacturers across
India.

2. Lords Freight India Pvt Ltd.

Mahindra Logistics Ltd [MLL] has acquired a majority stake in Lords Freight (India)
Pvt Ltd, a move that will help the company enhance its portfolio of services. The
percentage of stake it acquired nor the investment is unknown. Lords, which specializes
in international logistics, is based out of Mumbai with a presence in across all major
Indian cities. This would be a maiden investment, and will considerably add to the value
proposition they offer to their customers,

“Our vision is to be India’s leading, most-preferred integrated logistics service provider’

and international freight forwarding is an essential component of this vision. With this
acquisition, MLL’s service portfolio will be considerably enhanced,” said MLL Chief
Executive Officer Pirojshaw Sarkari.
What they do:

Mahindra Logistics Ltd. provides logistic services. The Company offers services such
as freight transportation, warehousing and distribution, brokerage, supply chain
solutions, and industry sector solutions. Mahindra logistics belongs to the 17.8 billion
Dollars’ worth Mahindra Group with the vision of becoming a leading global 3PL player.

A Company with strong parentage & brand Subsidiaries which has operations span
in 19 industries and 100+ countries employing over 2,00,000 people and growing.

This organization have provides end-to-end logistics solutions to leading companies

all over India, With a turnover of INR 1900+ Crores, they have won prestigious awards
like ‘Confederation of Indian industries[Cii]– Best3PL' in the year 2014.

Very strong base and experience in Integrated Services like, Supply chain consulting,
Freight forwarding, Transportation, Cross-docks/Consolidation centers, In-plant stores
& line feed, Warehouse inventory & order management, Last mile delivery. Also
provides Value added Services like (Packing, labeling, kitting)

• A Growing company with Strong pan India presence,

• National transport Network with 13 offices, 90 operating locations, Over 25,000+
vehicles a month
• Warehousing space Over 5 million square feet with over 2000+ Manpower.
• In-plant stores and line feeding at 28 manufacturing locations, Managing
workforce of over 4,000

Mahindra logistics has grown significantly over last 3 years and serves market leaders
in every sector. We see that they stand true to the Mahindra brand with focus on customer
centricity through transparency, quality and customized solutions
Clients:

Below listed are few prestigious Client catered by Mahindra Logistics.

What do they offer?

Mahindra India has an outstanding reputation in the market for providing a reliable, fast
and easy-to-use service. Mahindra offers-

• Highly trained and professional staff, committed to being responsive to all

customer’s needs
• Customer service agents, available round-the-clock, 365 days of the year, to serve
customers whenever and wherever they need them
• Electronic pre-clearance of shipments through customs
• Five international gateways providing direct-to-air networks and faster sorting of
inbound and outbound shipments

Mahindra India is a proven facilitator of trade, across the globe. Their strength lies in
our global network and the know-how of our people. Backed by strategic alliances with
world-class partners and the innovative use of technology, they strive to continuously
improve the quality of the service. Their services range from fast, responsive and cost
effective express deliveries to-ecommerce fulfillment and intelligent logistics solutions.
Mahindra core services consist of door-to-door air express delivery of documents and
parcels of all sizes, both into and out of the country.

At Mahindra Logistics Limited, they are configured to deliver excellence in on-ground

operations and service delivery. Process control and continuous improvement are the
imbibe way of doing business. They endeavor to establish improved processes and
partner with our customers on a sustained impact journey.

1. Technology:
They can provide 100% visibility and control over vehicles in transit through the control
tower
 • End to end truck track and trace functionality
• Ensure time management
• Minimize idle time
• Maximize truck utilization
• Dispatch planning
• Optimize truck planning
• Ensure capacity and cost maximization
• Value added services
• Over-speed reporting
• Notification of delays via email, SMS, etc
With the cutting edge technology they have seen Reduction in transit time variably and
early notification of delays if any, this increases customer satisfaction. Increased
utilization and efficient routing of vehicle and live tracking of all operational metrics
with 100% Safety monitoring (truck over speeding, incorrect routing).

2. End to End Supply for internal Clients:

Mahindra Logistics Divisions has successfully managed end-to-end logistics for internal
clients like Mahindra & Mahindra's auto, farm sector businesses.

• 50 Stockyards & Warehouses across India.

• 5,500 vehicles transported to regional stockyards & Warehouse in a month for
outbound transportation to meet end to end needs.
• 100 monthly trips on one of the major routes In-plant management & Inter-unit
transfer of engines, castings and aggregates.

• 18,000 parts supplied in a month; part loads converted to full truck loads (FTL),
leading to on-time delivery- In-bound to axle/engine manufacturing units and
fully integrated plants.
• 50% shipment consolidated at cross docks; 25-30 Cr. annual savings Raw
Materials imported, Milk-runs in supplier locations & consolidation at cross-
docks.
 3. End to End Supply for External Clients:
Mahindra Logistics Ltd. offers large bouquet of services for a major e-commerce
player in India.

• Line haul : 1500+ trips/month to 17 Major Cities in 30 routes

• Local Distribution: Local Distribution in 530+ Vehicles to 23 Cities
• IHS1 (Kirana): 160+ Vehicles to 17 Small Cities.
• Last Mile – Heavy and Bulky: End to End delivery by Mahindra Logistics
delivery boy’s initiated to 3 cities.
• Last Mile – DC and small packages:1 Hub with small package delivery by MLL's
delivery team Managed out of Cochin Distribution Center
• Wholesale model: Business to Business delivery model to starting Bangalore.
• Time bound delivery – shortest time to market
• 24 x 7 dedicated command center
• Container body vehicles
• GPRS enabled vehicles
• DNTS (Distribution Network Tracking System)
• OMS (Order Management System)
• In-transit safety initiatives like padding, matting, etc.

Mahindra Logistics manages a complex distribution activity on Pan India basis, which
moves more than 3000 Tons per month, very much with in the permitted Service level
agreement 95%+ OTIF for customer, Damage goods reduced to 0.5%, High delivery
reliability at 97%.

This includes Services like:

• Express surface
• Express Air
• Full Truck Load
• Part Truck Load
• Rail
 • Dedicated
• Transportation:
Transportation is the most visible of all functions of logistics and high contributor to
logistics cost. We can see trucks, containers and wagonloads of material being moved
from place to place as an activity directly associated with trade and business. We should
also appreciate that this is an activity that adds highest amount of cost to the activity of
making inputs and outputs available to consumers. Transportation function moves the
products to meet customer expectations at minimum cost. Transportation is one of the
most visible elements of logistics operations. Transportation provides 2 major functions:
product movement and product storage

MLL has 8 strategically located cross docks near manufacturing hubs Pan India.
Active Cross docks are currently at Gurgaon, Jaipur, Nashik, Chakan, Hyderabad,
Bangalore, and Chennai. 2 other docks coming at Haridwar & Zaheerabad.

• Base load of over 200 MT / day

• Consolidation and distribution through cross docks
• Conversion of Part loads to Full loads
• Reduced transit time
• Overall reduction in logistics cost
• Service Offering
 • Freight forwarding solutions:

Mahindra Limited also provides cargo handling facilities through it partner, Lords freight
India Pvt Ltd. Below find the services, Sectors and clients Serviced.

LORDS provides air and ocean freight movement across key geographies
 Lords has executed project cargo of explosive goods for the ministry of defense
through a flight charter

• Cargo details: Currently reaching to around 3000 retail stores in 19 cities

• Commodity: 27 pkgs // 11189 kg // Projectile, Primer, Fuse and Charge, DG
cargo
• Origin Airport : Incheon, Korea
• Destination: Delhi, India.

• Major Challenges:
• Finding a suitable Aircraft within the readiness time.
• Cost efficiencies to suit the customer
• Class 1, DG cargo, can only be moved via chartered freight.
• Complicated processes and requirements given the consignee
• Aircraft to avoid overflying China, Bangladesh, Pakistan.

• Key achievements:
• Optimized route plan to avoid all no fly zones yet arrive in time
 • NOC and Landing permit obtained before arrival in India
• NOC’s from all overflying and refueling countries managed in-house
• All legs of the movements - Planning, execution and final delivery – managed
as per expectations

4. Safety & sustainability:

• Corporate safety council:

In tune with Mahindra standards, Mahindra Logistics has corporate safety council
establishing Mahindra Logistics Limited way of Ensuring. Health and Safety ensuring
the following:

• Awareness amongst workers undertaking educational, training and promotional

activities regularly
• Drafting of MLL Safety manual and policy
• Site wise monitoring of adherence to safety norms, ‘Best Safety Practice’ award
to teams
• Organizing National Safety Week annually to increase awareness
• Continuous Training Programs for drivers, Warehouse & Plant employees

• On-ground safety initiatives:

• Safety officer for all operations to manage adherence and trainings
• Independent periodic safety audits
• MLL certified vehicles – compliance standards for all business partners
• Provision of required safety attire Safety belts and ropes provided in Zaheerabad
plant
• Monitor metrics of in-plant transport damage, safety incidences and violations
across operations
• Driver welfare
• 13,848 hours of training conducted for drivers pan India
• 37 events were conducted wherein 2,329 drivers were benefited
• Scholarships provided to 64 Driver’s children for 10th and 12th
• Regular interactions with drivers

• Business Associates engagement programs:

• All Business Partners evaluated and assigned a category (Gold, Silver or
Bronze); Annual MLL business partner awards held
• Financial, as well as non-financial support is extended to business partners, e.g.,
investment for new vehicles, loyalty benefits, discounted deals for Mahindra
vehicles, etc.
 Objective of the Study

PRIMARY OBJECTIVE

• To have a thorough understanding of how logistics Operations and

Warehouse management works in Mahindra logistics.
• To learn the effectiveness of warehouse operations in Mahindra Logistics and
to understand the standards and benchmark the organization with respect to
the industry.

SECONDARY OBJECTIVE

• To know about Logistics Industries

• To understand the Divisions, Departments process of warehousing departments
• To know whether the internal and external customers are satisfied with the
existing range of service provided.
 Scope of the Study

In order to understand the concepts of Warehousing in terms of practical usage and to

have a glimpse into the how a real logistics company or organization uses Warehousing
Management as a formidable tool to gain customer satisfaction, reduce overall cost and
increase efficiency.

Inside the walls of the warehouse, the utilization of every component “space, people,
inventory and equipment” will impact the bottom line in profound ways over time.
Warehouse Management enables to analyze these components continually, so we can
conserve effort, fill orders faster and more accurately, save space and reduce inventory
and save money.

I selected “Mahindra Logistics” India’s one of the leading logistics Company. The study
is done to understand how Mahindra logistics manage their Warehouse operations effectively.
 Limitations of the Study

• The necessary information about the study was given by the company.

• Time constrain was a major limitation of the study

• Some of the study was based on observation from my short stint of Internship in
the Warehouse and Chennai Branch Office.
 Research Methodology

Companies could gain cost advantage using their logistics area of the business.
Warehouse management is a possible source of cost improvements a logistics that
companies could use during this economic crisis. The goal of this study is to expose a few
best practices used in Mahindra Logistics limited warehouse performance measurement
which lead to performance improvements.

The research represents a case study on a loss making warehouse which was contracted
by Mahindra logistics. The study demonstrates the intricacies of warehouse management
practices earlier used and how it was improved by Mahindra Warehouse team. This is to
understand possible barriers which influence the overall performance of warehouse
operation. Warehouse performance measurement refers to the measurement of: optimal use
of storage space, customer relations, activity, quality level, assets usage and costs.

This study is based on data provided by Mahindra Logistics Reports team form their
repository. From the data we understand opportunities to improve warehouse
performances in terms of planning, design and operation in General.

Based on the data provided, we are suppose are to understand how Mahindra Logistics
Uses warehouse performance indicators?

• How are they calculated by Mahindra Logistics and how are they interpreted the issues,
suggested solutions for the crisis.
• How can a manager use them in order to improve the warehouse performance?
This study will answer all these questions and will also present the way in which using
performance indicators in awarehouse belonging Mahindra Logistics Limited

Keywords: performance measurement, performance indicators, logistics, warehouse

management.
 Data Collection

To understandand to reach the said objectives, the study intends to use qualitative research
model which was mainly based on primary data and some secondary sources were also
used.

• Primary data:

• One to One discussion with the Warehouse management Team. Key

Informant Interviews [KII]

• Secondary data:

• Data Shared by Warehouse Reporting team.

• Annual Reports.
• Blogs
• Press Releases,

The study found the Effective management by Mahindra Logistics team improved the
performance of a Loss making Warehouse.
 Warehousing

A warehouse is a commercial building for storage of goods. Warehouses are used by

manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They
are usually large plain buildings in industrial parts of towns. They come equipped with
loading docks to load and unload trucks; or sometimes are loaded directly from railways,
airports, or seaports. They also often have cranes and forklifts for moving goods, which are
usually placed on ISO standard pallets.

• Introduction to Warehouse:
Warehouse can play a key role in the integrated logistics strategy and its building and
maintaining good relationships between supply chain partners. Warehousing affects
customer service stock-out rates and firm’s sales and marketing success. A warehouse
smoothens out market supply and demand fluctuations. When supply exceeds demand, a
demand warehouse stores products in anticipation of customers’ requirements when
Demand exceeds supply the warehouse can speed product movement to the customer by
performing additional services like marking prices, packaging products or final assembling
etc.

Warehousing can be defined as a location with adequate facilities where volume

shipments are received from production center, which are then broken down into particular
order and shipped onwards to the customer.

Warehousing is an integral part of any logistics system. The warehouse is a link between
producer and customer. Out-bound warehouse help consumers buy on demand without a
near4by production plant warehousing cost are about 10% of total integrated logistics costs
for most companies.

warehouse management helps in optimizing warehouse operations. It enables to pinpoint

big potential cost-savings and gives us a “hands-on” control of the movement of goods not
only in warehouse, but also throughout the entire logistics chain.

• Role of Warehousing in Supply chain:

Since inventory holding and the customer serving are key warehouse functions which
implies warehouse has an important role to play in supply chain. Some of the important
roles of warehouse are to make or break bulk.

Consolidation centers, cross docking centers, transshipment, product fulfilment centers,

returned goods depots, some other roles like customer support, installation and repair
services. The roles mentioned here are associated with some concepts like agility,
production postponements and time compression which are recognized as increasing trends
in warehousing. Thus inventory has important role on warehouse in modern supply chains

• Warehouse Management is used to optimize:

• Inventory: With our complete inventory management capabilities, track data on
every unit utilizing the latest technologies.
 • Labor: Make people more efficient by managing their tasks and improving their
processes. Plan and balance workload and monitor activities with integration to
Labor Management.
• Physical Space: Cross-docking and flow-through capabilities, plus integration
with Yard Management, reduce the need for warehouse space.
• Time: Automate picking, packing and shipping, and minimize the number of
moves per order

• Types of Warehouse:

• Private Warehousing:
A firm producing or owning the goods owns private warehouses. The goods are stored until
they are delivered to a retail outlet or sold. Potential advantage of using a private warehouse
is the ability to maintain physical control over the facility, which allows mangers to address
loss, damage, and theft. When not in use they can rent it out.

The construction and maintenance of private warehousing can be extremely costly. All the
expenses have to be carefully analyzed and evaluated. These are:

• Fixed expenses and building and land acquisition costs which are high;
• Expenses incurred on ensuring that warehouses are properly equipped with material-
handling equipment like conveyors, fork lifts, hand trucks, racks and bins, and dock
levelers;
• The costs of salaries of staff required for peak activity periods which can be very
high since retrenchment during slack periods may not be possible;
• Extra payment to be made for work on Saturday and Sundays and holidays;
• Generator and other services charges are required to be taken into account.
• The office and record-keeping equipment necessary for successful warehousing
operations has to be budgeted for;
• To this must be added the cost of such item as fuel, air-conditioning, power and light.
 • The cost of maintaining insurance records and of the premiums paid for fire, theft,
and also for workmen’s compensation.

The advantages and disadvantages of private warehousing as against those of public

warehousing are:

• Private warehousing offers better control over the movement and storage of products
as required by the management from time to time.
• There is less likelihood of error in the case of private warehousing since the
company’s products are handled by its own employees who are able to identify the
products of their own company better.
• If there is sufficient volume of goods to be warehoused, the costs of private
warehousing compares favorably with that of public warehousing. But private
warehouse may not be expected to be packed up to the brim all the while. Therefore
the costs of private warehousing per unit may actually be higher.

• Public Warehousing
A public warehouse rents space to individuals or firm needing storage, some provide wide
array of services including packaging, labeling, testing, inventory, maintenance, local
delivery, data processing and pricing.

All the foregoing cost factors operate in public warehousing as well. But in public
warehousing, the expenses are distributed over several other consignments of other clients.
In most instances therefore can render better service with greater flexibility for the user. A
company running a private warehouse will have to compare costs incurred with the total
figure for the complete service through public warehousing.
 • Advantages :-
• It is generally less expensive and more efficient.
• Public warehouses are usually strategically located and immediately available.
• Public warehousing is sufficiently flexible to meet most space requirements, for
several plans are available for the requirement of different users.
• Public warehousing facilities can be given up as soon as necessary without any
additional liability on the part of the user.
• The costs of public warehousing can be easily and exactly ascertained, and the user
pays only for the space and services he use.

• Contract Warehousing
Contract warehousing is a specialized form of public warehousing. In addition to
warehousing activities such warehousing provides a combination of integrated logistics
services. Thus allowing the leasing firm to concentrate on its specialty. They provide
customized services, eg. Value Added Services.

• Co-Operative Warehousing
These warehouses are owned, managed and controlled by Co-operative societies. They
provide warehousing facilities at the most economical rates to the members of their society.

• Bonded Warehousing:
These warehouses are owned, managed and controlled by government as well as private
agencies. Private bonded warehouses have to obtain licenses from the government. Bonded
warehouse are used to store imported goods for which import duty is yet to be paid. In case
of imported goods the importers are not allowed to take away the goods from the parts till
such duty is paid. These warehouse are generally owned by dock authorize and found near
the ports.
 FUNCTIONS OF WAREHOUSES

Warehouses are basically intermediate storage points in the logistics system where raw
material, work in process, finished goods and good in transit are held for varying duration
of times for a variety of purposes. The warehousing functionality today is much more than
the traditional function of storage.

The following are main function that warehousing serves today:

• Consolidation:
This helps to provide for the customer requirement of a combination of products from
different supply or manufacturing sources. Instead of transporting the products as small
shipments from different sources, it would be more economical to have a consolidation
warehouse. This warehouse will receive these products from various sources and
consolidate these into shipments, which are economical for transportation or as required by
the customers.

• Break Bulk:
As the name suggests, the warehouse in this case serves the purpose of receiving bulk
shipments through economical long distance transportation and breaking of these into small
shipments for local delivery. This enables small shipments in place of long distance small
shipments.

• Cross Docking:
This type of facility enables receipt of full shipments from a number of suppliers, generally
manufacturers, and direct distribution to different customers without storage. As soon as
the shipments are received, these are allocated to the respective customers and are moved
across to the vehicle for the onwards shipments to the respective customers at these
facilities. Smaller shipments accompanying these full shipments are moved to the
temporary storage in these facilities awaiting shipments to the respective customers along
with other full shipments.

• Product Mixing:
Products of different types are received from different manufacturing plant or sources in
full shipment sizes. These products are mixed at these warehouses into right combination
for the relevant customers as per their warehouses and continuously provided for the
product mixture shipments requiring these.

• Stock Piling:
This function of warehousing is related to seasonal manufacturing or demand. In the case
of seasonal manufacturing, certain raw materials are available during short periods of the
year. Hence, manufacturing is possible only during these periods of availability, while the
demand is full year around. This requires stockpiling of the products manufactured from
these raw materials. An example is mango pulp processing. On the other hand, certain
products like woolens are required seasonally, but are produced throughout the year, and
thus need to be stockpiled as such.

• Postponement:
This Functionality of warehousing enables postponement of commitment of products to
customer until orders are received from them. This is utilized by manufacturers or
distributors for storing products ready up to packaging stage. These products are packaged
and labeled for the particular only on receipt of the order.

• Positioning:
This permits positioning products or materials at strategic warehouses near to the
customers. These items are stored at the warehouse until ordered by the customers when
these can be provided to the customers in the shortest lead-time. This function of
warehousing is utilized for higher service levels to customers for critical items and during
increased marketing activists and promotions.
 • Assortment:
Assortment warehouse store a variety of products for satisfying the variety requirements
of customers. For example, retailers may demand different brands of the same product in
small quantities rather than larger quantities of the single brand.

• Decoupling:
During manufacturing, operation lead-times may differ in order to enable production
economies. Thus, the batch size and the lead-time of production may differ in consecutive
operations. This decoupling of operations requires intermediate storage of materials
required for the subsequent operation.

• Safety Stocking:
In order to cater to contingencies like stock outs, transportation delays, receipt of defective
or damaged goods, and strikes, safety stocks have to be maintained. This ensures that, on
the inbound site production stoppages do not occur, and, on the outbound side customers
are fulfilled on time.

• Advantages of Warehousing

Mahindra’s Warehouses offers many advantages to the business community. Whether it is

industry or trade,

It provides a number of benefits which are listed below:-

• Protection and Preservation of goods - Warehouse provides necessary facilities to

the businessmen for storing their goods when they are not required for sale. It
provides protection to the stocks, ensures their safety and prevents wastage. It
 minimizes losses from breakage, deterioration in quality, spoilage etc. Warehouses
usually adopt latest technologies to avoid losses, as far as possible.
• Regular flow of goods- Many commodities like rice, wheat etc. are produced during
a particular season but are consumed throughout the year. Warehousing ensures
regular supply of such seasonal commodities throughout the year.

• Continuity in production- Warehouse enables the manufacturers to carry on

production continuously without bothering about the storage of raw materials. It
helps to provide seasonal raw material without any break, for production of finished
goods.

• Convenient location- Warehouses are generally located at convenient places near

road, rail or waterways to facilitate movement of goods. Convenient location reduces
the cost of transportation.

• Easy handling- Modern warehouses are generally fitted with mechanical appliances
to handle the goods. Heavy and bulky goods can be loaded and unloaded by using
modern machines, which reduces cost of handling such goods. Mechanical handling
also minimizes wastage during loading and unloading.

• Useful for small businessmen- Construction of own warehouse requires heavy

capital investment, which small businessmen cannot afford. In this situation, by
paying a nominal amount as rent, they can preserve their raw materials as well as
finished products in public warehouses.

• Creation of employment - Warehouses create employment opportunities both for

skilled and unskilled workers in every part of the country. It is a source of income
for the people, to improve their standards of living.
• Facilitates sale of goods- Various steps necessary for sale of goods such as inspection
of goods by the prospective buyers, grading, branding, packaging and labelling can
be carried on by the warehouses. Ownership of goods can be easily transferred to the
buyer by transferring the warehouse keeper’s warrant.

• Availability of finance- Loans can be easily raised from banks and other financial
institutions against the security of the warehouse-keeper’s warrant. In some cases
warehouses also provide advance to the depositors of goods on keeping the goods as
security.

• Reduces risk of loss - Goods in warehouses are well guarded and preserved. The
warehouses can economically employ security staff to avoid theft, use insecticides
for preservation and provide cold storage facility for perishable items. They can
install fire-fighting equipment to avoid fire. The goods stored can also be insured for
compensation in case of loss.
 ‘Mahindra Logistics’ Warehouses

Besides the significant investments made in information technology, MLL has also recently
invested in over 500,000 square feet of modern warehousing space in western India, this is
a mix of both multi-user and built to suite facilities in a single complex, and adds to the 4
million square feet already operational. MLL’s plan is to now develop another million
square feet of modern warehousing in south and north India. These complexes will include
both multi-user and built to suite units with the very best / latest design, engineering, layout,
material handling systems, automation and warehouse management systems. Mahindra's
warehouse and stores and line feed service offerings:

 Very Optimized warehouse layout design.

 High end Receipt and storage of inputs. (barcode tracking)
 Complete accountability of inventory.
 Accurate order fulfillment. (minimum lost sale)
 Just in Time/Just in Sequence delivery to line. (minimum downtime)
 Automation through Warehouse Management system.
 Packaging solutions.
 Bundling/kitting/labelling/sequencing.
 Hazardous wastes/old stock disposal.
 Advisory services. (Warehouse re-design, location and sizing optimization)

Key Differentiators from other Warehouse providers:

For People:

• Pool of exceptional warehouse managers

• 24x7 customer support
Systems:

 Proprietary tools for improving productivity and increasing efficiency

 MLL Warehouse Management System
  Layout Optimizer for optimizing layouts
 Clean Sheet tool for process-wise manpower requirement
 Knap Sack for optimal storage pattern analysis

Infrastructure provided.

 5 Million Square feet. of space across the country

 Ability to bring in customized Material handling Equipment’s like, Cranes,
Forklift Dozers Etc.

Processes:

 Well-defined processes for tracking metrics.

 Structured process flows and SOPs for each sub-operation.
 Rigorous performance review and incentive plan.

Value to customer

Operational excellence:

• 95% on Time and In Full.

• 95% Inventory Accuracy.
Cost savings:

• Up to 10% reduction in overall costs through increased space utilization.

Other Benefits from Mahindra ware house to Clients:

• Improved efficiency of manpower through better planning, multi-skilling.

• Best-in-class warehouse infrastructure.
• Flexible commercial arrangements.
 • Transparency in operational metrics.
• Sustainable impact through Warehouse Management System.

Mahindra have Pan India footprint of warehouses and in-plant activities. The number of
warehouses is another strategic decision parameter taken by Mahindra Logistics which is
impacting a number of cost variables and customer service. If customer service is taken in
cost terms as cost of customer dissatisfaction, the number of warehouses will affect
transportation, inventory, and warehousing and customer dissatisfaction costs.

From their research they found transportation costs initially decreases with increasing
number of warehouses. This is due to the transportation economics obtained by having
large-volume long-range transportation from consolidation warehouses and short-range
small-volume transportation from break-bulk warehouses.

However, as the number of warehouses increases beyond a certain value, the transportation
costs starts increasing due to large number of transportation trips in – between the larger
numbers of warehouses. Inventory costs continuously increases with the increasing number
of warehouses beyond the increased space available needs to be utilized and firms increase
the commitment of inventory at these warehouses beyond those actually needed. Transit
inventory costs continuously decrease with the increased number of warehouses due to the
shorter transportation times between the larger numbers of warehouses.

The warehousing costs increase with more warehouses due to the maintenance and facility
costs associated with each warehouse. For the same space, a single warehouse incurs less
warehousing cost than two warehouses.

• Over 30 Ware houses locations across Sectors

• 28+in plant Operations
• Managing more than 5 million square feet of warehouse space.
Mahindra’s logistics location decision regarding warehouses is affected by manufacturing
plant, customer and market locations. They consider warehouse locations as market-
positioned, manufacturing-positioned, or intermediately-positioned.

• Market-positioned warehouses
Market-positioned warehouses are located near to the customers and markets (Chennai,
Mangalore, Bangalore, Mumbai, Delhi, Chandigarh, Ludhiana, Nagpur, Vizag
&Hyderabad) with the objective of serving them in proximate. These generally have a large
variety and low volume of items to service local requirements. Such warehouses reduce
cost by providing place utility. MLL’s warehouses functions as a collection point for the
products of distant firms with the resulting accumulations of product serving as the supply
source for retail inventory replenishment. This approach allows large and cost-effective
shipments from the manufacturer with lower-cost, local transportation providing service to
individual retailers.

• Manufacturing-Positioned Warehouses.
Mahindra’s positioned it’s warehouse are located near to their own manufacturing facilities
in order to support manufacturing on the inbound side and to facilitate assortment-creation
and shipping on the outbound side. This improves the support to manufacturing division

A few of the factors governing the warehouse locations are:

• Availability of services
• Land cost and soil strength and lay off land for drainage.
• Availability of transport linkages for example, to a rail siding
• Availability of utilities of water and power
• Taxes and insurance cost
• Expansion space availability below listed is the In Plant Warehouses and
External Warehouse Map.
Ware Housing
Model Customized warehousing Multi-user warehousing

Built-to-suit warehouses catering

to varied needs and Allotting space to multiple users
product types
Description
Operations depend on the location Addressing different types of
and demand. Ensuring optimum
type of warehouse required utilization of resources
Fixed cost model depending on Pay-and-Park’ model
Commercial
infrastructure, manpower and Variable cost model with a fixed
Model
services offered minimum
Customized to best fit product Flexibility of up scaling downscaling
specifications and business needs as per demand
Advantage to
Typically used for Regional
Customer Typically used for Centralized
Distribution Centers and satellite
Distribution Centers
ware houses
‘Mahindra Logistics’ Innovation led implementation delivering value for a leading e-
commerce player.

• Started pilot in just 1 city in Nov’14; In 2015, expanded to 19 cities pan-India

• Distribution to stores for pickup by the end customer / last mile delivery by store
staff.
• Single point of contact for pan-India delivery from WH to stores.
• Pick-up from customer Warehouse, delivery and cash collection handled solely
by the drivers.
• Placement attendance of 98%.
• 100% on-time delivery.
• Zero shortage of shipments and COD.

Some of the key achievements are:

• Optimized routes to utilize vehicle to the maximum – delivery, cash collection and
returns.
• Overall cost reduction by: - Eliminating delivery boys with single drivers visiting
10-15 stores each.
• Achieved 4x efficiency in volumes, using the same resources i.e. drivers and trucks.

Warehouse Layout and Design

Mahindra’s warehouse layout is designed in such a way that it can increase output, improve
product flow, reduce cost, improve service to customers and provide better employee
working condition. Their optimal warehouse layout and design for a firm will vary by the
type of product being stored, the company financial resources, competitive environment
and needs of customer. The warehouse manager considers the cost of trade between labor,
equipment, space and other vital information.
Designing warehouses is challenging because it involves so many trade-off decisions.

Each warehousing function needs to be carefully implemented in order to achieve

operational. These targets are often expressed in terms of capacity, throughput, and
customer service levels.

A typical structured approach of warehouse designing could be as follows:

• Determining the overall space requirements for all warehouse processes

• Specify a U-shape, straight-thru, or modular overall flow design

• Locate functions with high adjacency requirements close to one another

• Assign processes with high storage requirements to high-bay space and labor
intensive processes in low-bay space

• Document expansion and contraction strategies for each warehouse process

Design and layout principles used in Mahindra warehouses:

• Use a one storey building wherever possible.

• Use straight-line or direct flow of goods in and out of the warehouse with goods
being delivered at one end, held, and ranked according to ABC analysis.

• Utilize an effective storage plan to maximize warehouse operations and to avoid

inefficiencies.

• Use efficient materials handling equipment.

• Minimize aisle space within the constraints of the size, type and turning circle of
materials handling equipment.

• Maximize use of the building’s height to use the cubic capacity fully.

• Use an efficient system of product identification.

 • Plan for growth.

• Ensure full attention is given to health and safety issues

In designing warehousing systems it is desirable to maximize.

• Space utilization;

• Equipment utilization;

• Labor utilization;

• Accessibility of all materials;

• Protection of all materials.

Storing goods in adequate space with the proper equipment by well trained personnel in a
properly planned layout results in maximum protection of items.

Types of Warehouse Layout are:

• The through flow system

• Inverted ‘T’ flow

• Cross flow system

• Corner flow system

Mahindra considers three factors, in the design process:

• The number of stores in the facility,
• Height utilization,
• Product flow.

Their warehouses have 20-30 foot ceiling. Through the use of racking or other hardware it
is possible to store product up to the building ceiling. Warehouse design also allow for
straight product flow through the facility whether items are stored or not. In general this
means that product can be received at one end of the building, stored in the middle and then
shipped from other end.

In Mahindra’s warehouse layout product are grouped according to their compatibility,

complementarities, and popularity.

• Compatibility refers to whether products can be stored harmoniously

• Complementarities how often product are ordered together and therefore stored
together
• Popularity relates to different inventory turnover rates or demand rates of products.
Items that are in greatest demand should be stored closest to shipping and receiving
docks.

From their design we can understand that a Good warehouse layout and design often
involve the use of automated equipment, such as a conveyor system to handle large number
of products packaged in a carton. The entire area of facilities development that is size and
number of warehouses, location analysis, warehouse layout and design is an important
factor yet complex, part of warehouse management. In recent years, computers have played
a more significant role as logistics executives attempt to optimize warehouse operation.
Thus a warehouse plays a multi-faceted role in the integrated logistic system.
Warehouse Equipment’s

In the present business world, all the warehouses are striving to attain an ideal warehouse
in which every equipment is automated and integrated with the computer systems which
minimize the effort put on to perform the operation and cuts down the cost for the operation.
This will at the same time reduce the man power required to perform various operations in
a warehouse.

Material handling involves short-distance movement within the confines of a building or

between a building and a transportation vehicle. It utilizes a wide range of manual, semi-
automated, and automated equipment and includes consideration of the protection, storage,
and control of materials throughout their manufacturing, warehousing, distribution,
consumption, and disposal. Material handling can be used to create time and place utility
through the handling, storage, and control of material, as distinct from manufacturing,
which creates form utility by changing the shape, form, and makeup of material. From my
Observation the role of equipment in warehouse operations is to reduce cost (labor +
space).

Maintain Quality of Product and Operations

• Provide an orderly storage environment.
• Provide efficient ways for product tracing and identification.
• Provide safe and secure material handling.
• Facilitate order sortation and consolidation.
• Establish and maintain a controlled environment e.g.,
1. Temperature control
2. Access control

Equipment Classification
• Containers & Unitizing Equipment
• Storage and Retrieval Equipment
• Unit Load
• Small Load
 • Conveyors
• Warehouse docks and dock-related equipment
• Automatic Identification and Communication Equipment

Pallet Storage Modes

• Block Stacking
• Rack Storage
• Single-Deep
• Double-Deep
• Drive-In/Through
• Pallet Flow
• Unit Load AS/RS ….etc.
An efficient storage mode when there are multiple pallets per SKU; inventory is turned in
large increments, I.e., several loads of the same SKU are received or withdrawn at one
time. Main problem with this method is: Loss of space due to “honeycombing” not effective
utilization of the vertical dimension of the facility

Selective or Single-Deep or Simple Pallet Rack

• The “benchmark” storage mode
• Due to rack supports, each pallet is independently accessible (i.e. it supports totally
random access)
• Trade-off: too many aisles => inefficient space utilization

Double-deep rack
• Two selective racks placed back-to-back => 2-deep lanes
• Each lane dedicated to one SKU => space loss in case of SKU’s with odd number
of pallets
• Less aisle space required (up to 50% savings in aisle space)
• Trade-off: More work and/or specialized equipment for retrieving
Other pallet rack types
• Drive-In/Through rack: 5-10 loads deep
• Better space utilization
• More difficult, even dangerous retrieval
• Pallet flow rack: up to 8 pallets deep
• The rack shelves are slanted and have rollers, and therefore, every time a pallet
is retrieved from a lane, the pallet behind it takes its position.
• Allows for simultaneous picking and restocking
• Supports FIFO operation
• Typically used in high-throughput facilities
• Cantilever rack:
• Supports long items like timber and pipes

• Unit-Load Retrieval Equipment

• Key Differentiation factors:
• Aisle width requirements
• Lift height/weight capacity
• Lane depth they can reach
• Degree of automation
• Capital expense
• Major types
• Willkie Stacker
• Counterbalance Lift Truck
• Narrow Aisle Vehicles
• Automated Storage/Retrieval Machines

• Small Load Storage and Retrieval Equipment

• Operator-to-Stock (or Man-to-Part or in-the-aisle) system: the operator travels to the
storage location to retrieve material
 • Stock-to-Operator (or Part-to-Man or end-of-aisle) system: the material is
mechanically transported to the operator for retrieval
• Advantages of STO:
• Higher productivity
• Easier supervision
• Better item security and protection
• Disadvantages of STO:
• More expensive
• More maintenance
• More difficult to reconfigure

Operator-to-Stock Storage Equipment

• Bin Shelving
• Modular Storage Drawers in Cabinets
• Carton Flow Racks
• Mobile Storage
• All the above equipment can also be arranged in mezzanines to get a better
exploitation of the building cube.

Operator-to-Stock Retrieval Equipment

• Picking Cart
• Order Picker Truck (for higher placed loads)
• Person-aboard Automated Storage/Retrieval Machine
• Captive aisle
• Free roaming
Stock-to-Operator Equipment
• Carousels
• Horizontal
• Vertical
• Independently Rotating Racks
• Mini load Automated Storage and Retrieval Machine
• Automatic Dispenser
• Productivity gains
• Allow for extensive parallelization of order retrievals
• Focus on extracting rather than traveling and searching

Conveyors
• (Flat) Belt
• Roller
• Telescoping Belt
• Chute
• Sorting
• Deflector
• Push Diverter
• Pop-up Skewed Wheels
• Pop-up Roller
• Tilt tray
Remarks: Conveyors change the economics of travel. They can partition physically the
warehouse into zones.

Warehouse docks and dock-related equipment

• Warehouse docks: The facility interface with the shipping carriers
• Dock configurations and dimensioning
Equipment facilitating the interfacing between docks and shipping carriers
• Dock levelers: compensate the height difference between the carrier platform and
the dock door
• Mobile yard ramps
• Permanent adjustable dock boards
• Truck levelers
• Scissors-type lifting docks
• Bumper pads: absorb the shock from the impact of the shipping trailer with the dock
walls (laminated rubber cushions)40,000 lb load traveling 4 mph => 150,000 lb
force
• Dock shelter: a flexible shield that when engaged to the carrier provides a closed-
environment interface between it and the inner area of the warehouse energy savings,
increased safety, product protection, etc.

Automatic Identification and Communication Equipment

Permits real-time, nearly flawless data collection and communication, and therefore, it
facilitates and increases the real-time awareness of the location, amount, origin, destination
and schedule of the material.

Automatic Identification and Recognition

• Bar coding technology:
• Bar codes
• Bar code readers
• Bar code printers
• Optical character recognition
• Radio Frequency (RF) and Surface Acoustical Wave (SAW) tags
• Magnetic Stripes
• Machine Vision
Automatic Paperless Communication
• RF data terminal
• Voice headset
• Light and Computer Aids
• Smart card

Personal Protective Equipment

• Hard hat
• Eye protection
• Hearing protection
• Dusk mask
• Work gloves
• Safety shoes
• Cold weather gear

Emergency Equipment
• Sprinklers
• Fire extinguishers
• Evacuation routes
• Electrical panels
• First-aid supplies
• Alarms and phones
• Walkie-Talkie
Manpower in Chennai Warehouse Division

Manpower set-up in Chennai Warehouse

No of
Designation No of Posts
employees
General Manager- South Division 1 1
Manager- Warehouse 1 1
Assistant Managers - Stores + Accounts +
3 2
Reporting
Store Keepers- Supervisors 4 3
Assistant Store Keepers 8 7
Store Helpers[Contracted] 32 X 3 Shifts 28-29 per Shift
Security Supervisor 1 1
Security Guards [Contracted] 8 X 3 Shifts 8 Per shift
House Keeping [Contracted] 3 X 3 Shifts Per Shift

Organization Chart at Chennai Warehouse

Recording and Reporting

Keeping records and reporting to the authority is the last and important part of the
warehouse management where the quantity of materials received and distributed at the
reporting period is mentioned. It provides the materials management personnel the exact
picture of the materials consumption and surplus or shortage situation. Reporting team
ensure whether the central warehouses are maintaining store tickets and ledgers properly
in issuing, returning, etc. of the materials. It ensures maintaining of all sorts of files related
to receiving, issuing, returning; and supporting papers of the same, voiding ticket etc. as
per Mahindra Central Compliance team guideline.
• Coding and Classification of Materials:

A significant coding system is a system for identification of items and components by

symbols, letters, numbers or a combination of these elements, whereby each digit or
sequence gives a complete and unique reference which cannot be confused with another
and can be recorded, retrieved and recognized throughout the enterprise.

The advantages of a significant coding system to an organization are:

• It avoids repeated use of long descriptive titles;

• It provides a unique code for each item and accurately identifies them;
• It can help in standardization and variety reduction and also prevent duplication of
items;
• It can be taught and thus can provide the organization with a common language;
• It can be used to categories goods which forms a convenient basis for sorting and
recording of documents;
• It simplifies recording and is convenient for central analysis of different warehouse
records;
• It is an aid to all activities of materials management and control and in many cases a
prerequisite of, stock control systems;
• It can be used for financial record keeping;
• It can be employed for efficient order picking;
• It can be used by a warehouse location system.
 Case Study

To understand the concepts of Warehousing in terms of practical usage and to have a

glimpse into the how a real logistics company or organization uses Warehousing
Management techniques as a formidable tool to gain customer satisfaction, reduce overall
cost and increase efficiency and performance, I was shown about a Warehousing / Stores
& Line Feed data from Reporting team.

Based on the data shared by the team, below find the case study.

The Bosch Group is a leading global manufacturer of automotive and industrial technology,
consumer goods and building technology. India is a significant market for the Bosch group,
in view of its rapidly growing automotive market and availability of manpower with high
degree of engineering and technology skills

Bosch is also a leading supplier of technology and services in the areas of Mobility
Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology.
Additionally, Bosch has in India the largest development center outside Germany, for end
to end engineering and technology solutions.

The Bosch Group operates in India through nine companies, viz, Bosch Limited, Bosch
Chassis Systems India Limited, Bosch Rexroth India Limited, Bosch Engineering and
Business Solutions Private Limited, Bosch Automotive Electronics India Private Limited,
Bosch Electrical Drives India Private Limited, BSH Home Appliances Private Limited,
ETAS Automotive India Private Ltd. and Robert Bosch Automotive Steering India Pvt.
Ltd. In India, Bosch set-up its manufacturing operation in 1951, which has grown over the
years to include 15 manufacturing sites, and seven development and application centers.
Bosch Group in India employs over 30,000 associates and generated consolidated revenue
of about ₨.17,022 crores in 2015 of which ₨. 12,100crores from third party. The Group
in India has close to 14,000 research and development associates.
Bosch’s Warehouse:

The warehouse owned by the company is located in Hyderabad and was acquired in 2009.
The location of the warehouse was chosen for the following reasons:

• It is placed near the trucks route,

• There is an easy access to the facility,
• It has a parking area for the cars of the firm
In 2012 Bosch made agreement with Mahindra Logistics to manage its warehouse division
based on the contractual basis. Below find the findings at that time.

The building has 15000 square Feet; it has few big rooms for storing the products (on
shelves or on pallets), and offices for the whole firm. Even though they had strong Check
points and performance measurements indices, they could not Control the KPI's like
Inventory Management, Order fulfillment & Warehouse performance.

We shall use for performance improvement as the performance indicators. The purpose
was to identify the poor performance inside the warehouse. As we mentioned above, they
have used John M. Hill’s indicators to assess the performance of the warehouse, grouped
into three categories like “Inventory Management”, “Warehouse Performance” and “Order
Fulfilment” The values written in green indicate that the operation is going smoothly and
red means that there are problems.

Problems and Causes:

Taking into account the red values from performance indicators and also the warehouse
process map, we have identified several problems regarding warehousing, related to space
usage, inventory management, warehouse performance and order fulfilment (performance
indicators), that are presented below. Below find the Table with the Problem Area and its
causes.
Solutions suggested:

• Space:
The main problem of the warehouse is the poor utilization of space. It can be solved by
breaking some walls so that to have only a room for storing the merchandise. One of the
archives, the two halls and one of the toilets should be eliminated. The offices of the firm
should be moved on one side of the warehouse, so that access to goods be direct. The
current Office of the Director should be divided in two halves: one used by the director and
the other by the accountant and moved on the left side of the warehouse. These
modifications would result in a gain of 55.83 sq.m. There should be two main docks in the
warehouse: one for receiving the products and one for delivering them. They should be
situated on opposite sides of the warehouse. In this way, there will be a better access to all
the products. Before making these modifications, the opinion of a construction engineer
should be taken into account. Another solution is related to the fact that there are multiple
flows which intersect each other. One solution which would improve space utilization is a
new design of flows inside the warehouse – it looks like possible to establish one different
entry and one different exit for each stored product category.

• Inventory Management:
“Dock to Stock Time” can be reduced by introducing portable barcode readers and a
barcode software. The time for entering the products or for preparing them for delivery will
be shortened also by solving the problem related to space. “Days on Hand” indicator will
have a lower value if contracts with suppliers are renegotiated and if are kept only the ones
who are able to deliver products fast. The firm should also use an ABC analysis in order to
know what products to place near the exit dock.

• Warehouse Performance:
The problems related to warehouse performance can be solved by improving the space
utilization and by introducing portable barcode readers. We recommend a performance
indicators continuous monitoring, in order to observe the improvements while they appear.

• Order Fulfilment:

Delivery problems can be solved by collaborating with suppliers that have the possibility
to deliver merchandise fast or by investing in cars, and all that results from this investment
(hiring a driver). These solutions could be implemented, in our opinion, in about 3 months,
and this is because the whole architecture of the building has to be changed.

Key value proposition initiated by Mahindra’s Logistics team.

• Lean organization structure with strong operating team to deliver

• Continuous productivity improvements demonstrated
• 100% inventory ownership and stock accuracy
• Vendor owned MHE
 • Flexibility in resources deployment
• Implemented 5S standards

Key achievements post taking over the warehouse from Bosch ltd.

• Cleared VDA audit

• ISO certification (MLL VW)
• Achieved ‘0 downtime’ on first day
• 99.99% inventory accuracy

Below find the snap shot about this case study in their Annual report of the year 2014.
 Conclusion

The main solutions we propose regarding warehouse management are performance

indicators and process mapping. These two solutions complete each other. It is easier to
establish key performance indicators for a warehouse after a process map was drawn,
considering also other indicators used at international level. The process map is the
helicopter view needed for establishing relevant performance indicators.

Performance indicators are useful for identifying the problems – red or abnormal values of
the indicators are as a control system for a warehouse.

In order to solve the problems, we have used a very simple methodology: identify the
causes of the problems and then try to diminish their impact or just eliminate the causes. It
is a cause-effect approach, easy to be applied by any manager.

Warehouse performance measurement means, in our opinion, discovering the problems of

the warehouse and solve them before is too late. It is a way to reduce costs by improving
operations that take place in a warehouse, and having low costs is an essential feature of
differentiating logistics firms. We applied the key performance indicators to a small
company, but they can be calculated also for large firms. Even on a small scale, they helped
us discover a lot of problems, out of which the poor utilization of space was the essential
one.

Learnings:

• Learned a lot about logistics and specifically about Warehouse Division

• The labors in the Hyderabad unit were not skilled and trained, so the material
handling is not efficient.
• They were working without motivation and with low Morel. Mahindra used their
sustainability methods and increase the welfare activities- Which reduced
Absenteeism and Attrition.
• The area of the Hyderabad location is around 15,000 Sq feet. The area was not
utilized efficiently for the present demand. Lay out of the Warehouse was
redesigned
• Multiple negotiations and Discussions happened with Suppliers and Vendors for
on time delivery of goods.
• Clients did not have bar coding facilities and they were still using old traditional
way of Tagging and clearing.
• The organization focuses on customer satisfaction and best and speed service.
• The major advantage is that the company as all largest service provider in south
India
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