Logistics Initiatives

The digital initiatives taken by the company at the Oragadam plant aim to optimise the supply chain processes. They extend support to businesses by conserving cash through inventory reduction. In this plant, the company targets a global benchmark Inventory Turnover Ratio (ITR) of 52 turns with a 95 per cent customer on-time-in-full (OTIF). Initially, the company had high-level racks with manual kanbans, resulting in an ITR of 8. Now, the company has transitioned to eye-level racks with control based on SAP’s max/min stock with an ITR of 14.3. To enhance logistics efficiency, there is an end-to-end integration of digitalised processes within the plant. This integration streamlines operations from order placement to production, with seamless communication between the customer portal and the company’s systems. The plant supplies various components, including machined castings, e-compressor, Hyd ESC and APU cartridges. The customer portal is directly integrated with the company’s system, from where customers can place orders directly to the system. After getting the order from the customer, it is transferred to production. Under production, the company has implemented the SAP-based warehouse management system which takes care of the inventory. The company has also implemented autonomous mobile robots to optimise floor operations. The company ensures supply stock visibility through its portal, enabling stakeholders to track inventory levels in real time. Concerning imports, the company operates through Electronic Data Interchange (EDI), intending to localise 48 per cent of the imported components to minimise import dependence.