What are the problems in logistics you face?

Each state poses a problem in logistics operations. The variations in regulations between states adds to complexity while infrastructure inadequacies lead to unnecessary delays and damages.

Manpower in transport and material handling is mostly uneducated and these add to costs.

How do you combat these logistics problems?

Full implementation of VAT will help in a big way together with allowing the establishment of regional distribution centres. The hub-n-spoke system will also improve operational efficiencies and combat seasonal swings.

The processes involved in products and handling systems are being streamlined to overcome the other issues.

What is your existing structure for supply of raw materials to factories?

Raw materials and parts are sourced from across the country and are also imported. Most suppliers are strategically located near our factories with driving times ranging from 15 min to 6 hours. In such cases milk-run routes are used.

What is the supply chain from factories to retail outlets/stores?

The Factory Distribution Centres feed the Local Distribution Centres. The location of the LDC is determined both by statutory requirements and market demands. The LDCs in turn feed the distributors or the retail outlets.

How many factories have to be served?

The three manufacturing facilities are at Faridabad, for direct cool refrigerators, at Ranjangaon-Pune for frost-free refrigerators and at Pondicherry for washing machines for the Indian market and small appliances for the KitchenAid brand in the US.

What is the degree of automation and IT packages used?

Whirlpool uses SAP for companywide ERP. SAP is used across the spectrum f operations from planning to product delivery to the trade. Barcoding is used for product tracking.

How much is the cost of logistics in the company's operation?

Logistics forms approximately 4.5per cent of our total cost.

How much of logistics is in-house and how much is outsourced?

Almost all the logistics is managed by inhouse personnel. As a pilot we are experimenting outsourcing the milk run operations in one of our plants. All CFAs at the LDCs across the country are outsourced.

Who is it outsourced to and why?

CFAs are outsourced to large logistics firms or local players depending on the need of the particular location.

What is the average cargo handled in a month/quarter?

Approximately 50,000 tons per quarter

What is the transport mix? Trucks, railways, etc.?

All transport is using trucks.

Depending on the transport mix, how many trucks, etc., required for transportation every month/quarter?

Approximately 7,500 trucks every quarter.

What sort of insurance is used?
We have a system of Warehousing insurance while Imports are insured till the port of clearance.

What is the average time required for supply from factories to consumers?

Approximately 20 days.