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Mahindra & Mahindra -FES
India’s Largest Farm Equipment Manufacturer
| Highlights |
| Company |
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| Industry |
- Auto – Farm Equipment Manufacturing
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| Solution provided |
SETU™ Adaptive SCM solution built on SETU™ AIDC middleware comprising
- RFID Data Extractor
- Event Filtering Engine
- Action Engine
- SAP Connector
- X-DB
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| Business Results |
- Complete reduction in manpower involved in physical count check and stock verification
- Picking and Docking personnel save 32% of their time
- Near-zero shrinkage of the items covered
- 14% reduction in costs by FIFO compliance in storage
- Automated Minimum Stock event trigger initiate procurement) and shipment date ( modify production plan through APO) triggers to SAP
- Employee and goods movement authorization
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Company
M&M's Farm Equipment Sector is the largest manufacturer of tractors in India with sustained market leadership of over 19 years. The Farm Equipment Sector is the first Tractor Company in the world to win the Deming Prize. All of M&M FES plants have been certified for ISO 9001, QS-9000 and ISO 14001. M&M FES has a US subsidiary based out of Tomball, Texas and a dealer network of 140.
Challenge
Inventory accuracy, shrinkage control, controlling delays in vendor shipments, minimizing dud production schedules are of critical importance to Mahindra Tractors in their drive to improve supply chain efficiencies. Though personnel cost is not an issue in the Indian context, avoidance of human errors to maintain accurate information is another important factor that drove M&M to look for realtime data capture solutions from proven solution providers in the AIDC area.
Solution
SkandSoft Technologies Private Limited was chosen to provide user friendly, single-window solution to the complex challenges above.
SkandSoft, after a comprehensive study of M&M’s existing inbound supply chain, presented a blue-print of the over all solution and benefits. A part of the overall solution is selected to represent the overall complexity and functionality and defined as the scope for a demonstrative pilot.
The solution includes consulting and initial counseling of the applicability and benefits of adaptive SCM, evolving specifications of RFID hardware and systems, implementing the middleware and integrating the same with SAP MM and APO modules.
Benefits
The application tracks any missing/to-be-stored components. So the inventory status at any point of time represents the “real physical” inventory, at storage, in the process of being stored or received.
Production planning is directly linked to movement of goods from vendor locations and various third party logistics companies. This avoids any dud schedules and rearranged production plans dynamically through APO.
Inventory data is updated automatically 24X7
Minimum stock quantity generates an event to SAP, initiating automated procurement process
FIFO is embedded in the process logic, enforcing compliance. FIFO compliance results in 14% savings in inventory management costs annually (applied to time sensitive items like batteries, magnetic coils, rubber items etc.).
Authorization of employees responsible for movement of goods from the storage area.
Validation of Issued quantity with physical movement of goods and updating the same in real time only after the goods are moved physically.
Future Plans
The scope will be expanded to cover all vendors of Class A and B components, with enforced mandates to tag the components at vendor premises in specified formats.
All 3PLs of Class A vendors will be covered in the scope and that of Class B will be added to the network selectively.
In house material movement of the A and B components will be automated and relevant events integrated with SAP. Production schedules based on the shipment status of various vendors will be controlled through APO by integrating all new vendor and 3PL locations with Adaptive SCM solution.
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