Warehouse Network Modelling & Design for Solar Panel Manufacturer
About The Organization
Vikram Solar Limited is an Indian company based in Kolkata. It is one of the largest solar module manufacturers in India, with 3.5 GW module manufacturing capacity annually and the second-largest solar energy company in India by revenue. (Source: Wikipedia)
Vikram Solar is one of India’s largest module manufacturers, in terms of operational capacity, producing solar photo-voltaic modules, and is also an integrated solar energy solutions provider offering engineering, procurement and construction services, and operations and maintenance services. Enerokart Private Limited was the distribution wing of Vikram Solar.
OPPORTUNITY
Vikram Solar is on an aggressive growth plan and to align the Supply chain as an enabler to that growth, this project was kick started. To unearth all the potential opportunities, we need to –
- Re-visit / Re-design the Distribution network
- Re-design & Optimize the processes
Thus, Enerokart Private Limited (Vikram Solar) engaged Hesol to analyze the current state and provide a model for future growth expansion to stay ahead of the competition.
Basis the discussion with the client and the initial data points the scope of work was formulated as below to execute the desired functional output for the Photovoltaic Module giant.,
- Distribution analysis
- Inventory health analysis
- Benchmark report
- Recommendation
SOLUTION
Tools Used:
- Virtual GEMBA Mapping
- VSM
- PUGH Matrix
- Pareto Analysis
- Dipstick Study
- Benchmarking
- TOC / Lean Six Sigma
- Capture the VOICE OF THE CUSTOMER through 1-1 sessions across functional areas like plant warehouse, a centralized warehouse, 3PL party, own distribution centre, planning and strategy development team was conducted.
- VALUE STREAM MAPPING: An in-depth understanding of the various pillars of the organization and identifying the gaps and redundancy in the system.
- LOAD ANALYSIS: CFL And Ex-works assessment of the current situation to review the revenue loss in the transit process.
- LEAD TIME ANALYSIS: an in-depth understanding of the lead time from order to delivery by state to visualize the impact in leakages and time loss to provide insight into clearance, dispatch and delivery timeline.
- SERVICE PERFORMANCE ANALYSIS: Ontime In full (OTIF) analysis for all the states.
- COST ANALYSIS: Inventory health analysis to bring insight into the Excess stock and dead stock maintained by the organization.
- NETWORK ANALYSIS: Current distribution concentration by area of operation by city and states to understand the impact on service fill.
- INVENTORY HEALTH ANALYSIS: Nonperforming stock, stock out and low stock situations were analyzed.
- BENCHMARK INDUSTRY PRACTICES: KPIs for the client were identified and benchmarked based on the type of material handling, company size, warehouse operation, ERP system, and low volume industry.
RESULTS
- To-Be Distribution Network for India Supply Chain is Designed and Released.
- 17 Key KPI’s were defined and a process is developed for Performance Measurement and Management.
- Dynamic Standard Operating Procedures were designed and Knowledge Transferred.
- Leveraging thorough Supply Chain Simulation exercise, Warehousing Footprint is Optimized from 22 Warehouse to 7 Warehouses with a Hub and Spoke concept with no dip but improvement in overall Service performance and Customer experience.
- Kaizen – Process improvements like system-integrated POD implementation, establishing transporter contracts, and freight cost reconciliation in SAP by invoice were introduced.
- Supply chain’s Service policy was recommended to bring integration up and down the Supply chain.
