2. Our integrated performance
  3. Manufactured capital

Manufactured capital

Building capacities for an
integrated ecosystem

We have set up best-in-class infrastructure for manufacturing, storing and distributing our products. In addition to enhancing utilisation and making the requisite capacity expansions from time to time, we also strive to achieve higher efficiencies and become a leaner organisation. During 2019, we streamlined operations across all our locations to remove duplication and redundancies that came to the fore post the merger. We have successfully merged the operations seamlessly into one, integrated organisation.

To achieve this, we ensured a re-look at the different operational processes of each entity to identify areas of improvement. We have made considerable progress in establishing a new, integrated inbound and outbound network via our centralised warehouses.

Of the four Central Distribution Centres (CDCs), two are up and running in Mumbai and Vadodara while those in Hosur and Gurugram will be completed in the future. The four CDCs and two Distribution Centres in Kolkata and Chennai will now operate for all three product brands. Our aim is to reduce the time we take to reach and service our customers. Our efforts led to some tangible and intangible benefits.

Benefits of the new logistics system

  • Consolidation of load across our network of plants and warehouses
  • Optimisation of material storage and movement across different locations
  • Quicker availability of products
  • Better planning, documentation and execution of the order
  • Timely delivery to customers
  • Reduced number of levels across the entire process
  • Improved overall supply chain network

We will continue to optimise the total logistics costs.

One Schaeffler : Integrating to perform better

Before

Import containers

Sea port

Containers movement

Plant/CDC

Primary movement

Secondary movement

After

Activity

Consolidation of Baroda and Pune goods

Single Air Waybill (AWB), House Bill of Lading (HBL) and Bill of Entry (BOE) of containers

CDC near port

Use of warehouse for SIL load consolidation

Billing to customers from the nearest CDC

Consolidated load to customer

Benefit

Rationalise premium freight costs

Optimise Freight Forwarder (FF) and Custom House Agent (CHA) charges

Improve transportation charges

Minimise intercompany freight and Warehouse charges

Improve secondary
transportation
charges

Minimise transportation charges

Status

Completed

Completed

Completed

In-progress

In-progress

In-progress