Daimler India Commercial Vehicles (DICV) has announced the modernization of its 30,000 sq. m. domestic parts warehouse in Oragadam which employs over 350 people. The warehouse already handles more than one million transactions a year – about two transactions every minute – and aims to improve efficiency further through the modernization project.
Muthu Maruthachalam C, VP of Supplier Management & Logistics Trucks Asia India, said: “In the last year, we have completely overhauled our warehouse from the ground up. We took a 360-degree approach to modernization by introducing more efficient processes, automation and digitalization. Our smooth BSVI ramp up is testament to the success of this ongoing project.”
DICV’s Supply Chain and Logistics function is constantly searching for better ways to synchronize its processes and systems to match product upgrades and volume targets. One such initiative was the introduction of a new kitting concept and internal sequencing operation that helped the warehouse feed parts to the production line in a more efficient manner. This was critical for successful ramp up of BSVI vehicle production, especially during the parts supply challenges brought about by recent lockdowns.
The company has also invested in a SAP-based WMS (Warehouse Management System) that will go live in October. This system will further improve stock accuracy and traceability, while reducing obsolescence by ensuring FIFO/shelf life monitoring. The upgraded WMS will also enable tracking of parts within the warehouse, including pre-defined storage locations, storage levels and optimization of material flow using advanced put-away and picking techniques.
As a next step, DICV is planning to introduce new infrastructure and equipment such as high bay racks and VNA (Very Narrow Aisle) forklifts that optimize usage of the warehouse’s available space.
DICV’s assembly line follows a fish bone concept that routes two thirds of material just-in-time and enables direct delivery on the line. The company will soon begin ‘just-in-sequence’ based supply with two pilot suppliers for better space and inventory optimization.
With around 400 Indian suppliers and over 125 million parts exported worldwide, DICV has proven to be a successful example of the ‘Make-in-India’ concept. Considering the volume of export parts handled, DICV also recently moved its third party logistics warehouse to its Oragadam plant. With two shift operations, the new 2000 square meter Export Parts Warehouse has the capacity to handle more than 3,000 pallets of parts, 100 containers and 200 truck movements in a month.