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Ambuja Logistics Management Strategies

Ambuja has implemented several logistics initiatives including an Integrated Logistics System (ILS) with pillars of order processing, inventory management, packaging, transportation, and warehousing. The company takes a cross-functional approach integrating IT with logistics across departments like production, sales and distribution, and transportation. Weaknesses include excess capacity, high operational costs due to reliance on coal, and inadequate distribution networks in some areas. Recommendations include investing in R&D, acquiring other companies, using more efficient fuel sources, outsourcing transportation, and expanding distribution.

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222 views4 pages

Ambuja Logistics Management Strategies

Ambuja has implemented several logistics initiatives including an Integrated Logistics System (ILS) with pillars of order processing, inventory management, packaging, transportation, and warehousing. The company takes a cross-functional approach integrating IT with logistics across departments like production, sales and distribution, and transportation. Weaknesses include excess capacity, high operational costs due to reliance on coal, and inadequate distribution networks in some areas. Recommendations include investing in R&D, acquiring other companies, using more efficient fuel sources, outsourcing transportation, and expanding distribution.

Uploaded by

sumit6singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Logistics Initiatives at Ambuja

Integrated
Logistic
System(ILS)
Pillars of Logistics Management System at
Ambuja
• Order Processing System
• Inventory Management
• Packaging
Logistics • Transportation
Initiatives • Warehousing

Cross Fusion of
Functional IT with
Approach logistics
Accounts

Sales &
Distribution Transportation

Customer
Centric + Low Cross
Production
Cost Department
Functional Warehousing
Committee
Order Processing System

Transmission Paper Retrieval Packaging Dispatch to Adjustment Information to


of Customer Processing from Transporter of Inventory production
Order warehouse Level planning

 Point of generation to point of order of fulfillment

 All the major things are linked to WAN (Wide Area Network)

 Electronic Data Exchange (EDE) , Material Resource Planning etc


Inventory Management

 Monitors levels of Inventory with the combined efforts of other departments: Production, purchase
etc

 Online Ordering of raw materials- reduces order in time as well as transaction cost

 Well developed system for inbound logistics: extracts limestone from near by mines

 Transportation with the help of Overland belt Conveyor(OBC) and trucks

 Company maintains a buffer of 10 to 20 days depending on the location of production unit


Weaknesses & Recommendation

1.6 Ton
Limestone
Capacity has been created well in advance with huge investments

• Excess capacity available in the market due to relatively low entry barriers

1 Ton Invest in R&D to increase the shelf life of the cement


Cement
.05 Ton .25 Ton
Gypsum Coal Acquire companies & find new markets for its product

Minimal utilization of foreign Technology & over dependence on Coal

• Operational costs have escalated


Freight accounts for 18% of the total cost
• Requires latest technology to improve the overall efficiency
• Plants are quite far from mining areas like Bihar & Invest in better efficient fuel sources. (Pet Coke: 8500 Kcal/kg; Natural Gas: 12500
Meghalaya Kcal/kg)

• Plants are concentrated in a single region of Gujarat


Find alternative technologies for fly ash
• Inadequate availability of wagons for transportation

Outsource road transportation to a 3PL provider Poor Distribution network in North & South India

Implement two way transportation


Focus on wholesalers (real estate companies & government organizations)
Capitalize on Multimodal transportation

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