The customer is amongst the top 10 business houses in India. They are the largest exporters of automotive vehicles and their parts to 70+ countries and a significant share of revenue comes from exports. Milk Run Supply Chain Automation How Nitor helped a leading Indian Auto Manufacturer develop a modern-age application to enable end-to-end visibility and tracking of their Milk Run Supply Chain to increase overall efficiency This case study focuses on the implementation of a cutting-edge application built for the digitization of milk run supply chain logistics department of a renowned auto manufacturer by Nitor Infotech. We started this engagement with a thorough assessment of the customer’s requirements. They desired an accurate and synchronized JIT delivery of goods along with better transparency in distribution & transportation costs. To achieve the same, we proposed a centralized automated application having capabilities to monitor the customer’s milk run supply chain drivers & suppliers and provide their internal teams & stakeholders with actionable insights. After the implementation of this application, the customer was able to achieve an enhanced & transparent milk run supply chain process with minimal manual dependencies and a reduced transportation costs. The term “Milk Run Logistics” is a generic name used for the logistics procurement process that uses the routing method to consolidate goods from the buyers. In this process, the user (here, a 2-wheeler assembly manufacturer) dispatches a truck to visit various automotive parts suppliers to collect the goods. They follow a predefined route to collect these parts or the products and deliver them to the factory at a specific time. Executive SUMMARY About MILK RUN LOGISTICS About CUSTOMER CASE STUDY
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The customer is amongst the top 10 business houses in India. They are the largest exporters of automotive vehicles and their parts to 70+ countries and a significant share of revenue comes from exports.
Milk Run Supply ChainAutomationHow Nitor helped a leading Indian Auto Manufacturerdevelop a modern-age application to enable end-to-endvisibility and tracking of their Milk Run Supply Chain toincrease overall efficiency
This case study focuses on the implementation of a cutting-edge application built for the digitization of milk run supply chain logistics department of a renowned auto manufacturer by Nitor Infotech. We started this engagement with a thorough assessment of the customer’s requirements. They desired an accurate and synchronized JIT delivery of goods along with better transparency in distribution & transportation costs. To achieve the same, we proposed a centralized automated application having capabilities to monitor the customer’s milk run supply chain drivers & suppliers and provide their internal teams & stakeholders with actionable insights. After the implementation of this application, the customer was able to achieve an enhanced & transparent milk run supply chain process with minimal manual dependencies and a reduced transportation costs.
The term “Milk Run Logistics” is a generic name used for the logistics procurement process that uses the routing method to consolidate goods from the buyers. In this process, the user (here, a 2-wheeler assembly manufacturer) dispatches a truck to visit various automotive parts suppliers to collect the goods. They follow a predefined route to collect these parts or the products and deliver them to the factory at a specific time.
Executive SUMMARY
About MILK RUN LOGISTICS
About CUSTOMER
CASE STUDY
The customer faced challenges in scheduling their regular transportation processes & trips with a manual workflow system. Their business executives & managers spent a lot of time creating manual trip sheets and manufacturing process plans that impacted communication within internal team members. The other business challenges include:
Improper production line planning:Inaccurate & unsynchronized delivery of goods due to manual processes
Lack of timely notificationsNo mechanism to send notifications/alterations during emergency conditions which kept the stakeholders outdated with the critical information related to transportation
Late deliveriesNo real-time view of the planned route was visible which affected timely deliveries
Inaccurate location trackingUnkown vehicle location made tracking of vehicles difficult and raised delays in deliveries
Complicated distribution costsUnnecessary distribution costs of automotive parts were included due to traditional business practices
Consolidated transportation costs:Costs for transporting smaller consignments i.e. unnecessary trips, were consolidated along with larger consignments
Real-time monitoring of the milk running vehicles through maps according to their current route (vendor completed or vendor to attend) with accurate vehiclein-out time status
Transparent material visibility with regular alerts whenever a user excesses the materials as per their requirement
Regular work in progress status updates at the vendor side
Simplify distribution cost and reduce transportation cost
To resolve these business challenges, the customer devised the following business objectives:
Keeping in mind the organization’s business objectives and its intent for a systematic supply chain process, Nitor Infotech developed an application that helped the customer have an automated supply chain system. The application now supported requirements such as proper vehicle route planning i.e. route adjustment on the basis of milk volume available per vehicle or alternate route suggestions to avoid traffic congestion to deliver better and faster. The application also provided:
• Accurate supplier identity to map relevant purchase order IDs
• Timely notifications to the drivers and suppliers in case of over-speed or delays
• Exclusive information portal to achieve relevant data of the suppliers and accuracy of material quantity as per the daily manufacturing plan
• Facility to add user inputs to enter reasons for the delays
• Smart mobile view to the drivers for easy viewing of their daily schedule
• Exact GPS tracking to check the live location of drivers while they reach suppliers
• Confirmation forms for drivers to entail specific details of their particular orders
• Exclusive driver profile management portal having their end-to-end contact details
• Green passes generated after back to back checkups for the drivers to move ahead
Supply Chain Automation 02
Business CHALLENGE
WWW.NITORINFOTECH.COM
Business OBJECTIVES
Nitor’s APPROACH
Benefits ACHIEVED
With more than 14 years of experience in handling multiple technology projects across their lifecycle spanning multiple industries, Nitor Infotech has gained strong expertise in technology consulting, solutioning and product engineering.
Using digitalization strategy as the centerpiece, for Enterprises, Nitor has a consulting-driven value engineering approach to build disruptive and modern products that solve complex business problems using specialized frameworks and accelerators.
© 2021 Nitor Infotech. To learn more, please reach out to us at [email protected].
About NITOR
No manual dependency:Minimalized manual intervention in case of storing materials that ultimately increased the overall efficiency
Expanded flexibility:Improved flexibility in receiving material by maximum utilization of the vehicle
Increased productivity:Enhanced proactive work in case of shortage of material from the vendor
Zero disputesEliminated the disputes between vendor and
transporter to get the correct information of vehicle location on the system
Transparent vehicle tracking:Enabled users to trace the vehicle in case of urgency
After Nitor experts successfully built & implemented the application, the customer experienced:
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