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    Ambuja

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    sumit6singh
    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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    Ambuja

    Uploaded by

    sumit6singh
    92 views4 pages
    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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    Ambuja

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    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.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    92 views4 pages

    Ambuja

    Uploaded by

    sumit6singh
    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.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    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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