Bajaj Electricals, Mahindra Logistics Ink Rs 1,000 Crore Outsourcing Deal

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Bajaj Electricals Limited (BEL) and Mahindra Logistics Limited (MLL) announced today that they have signed an agreement for innovative optimization and outsourcing of logistics.

The deal includes a comprehensive redesign and outsourcing of the logistics of Bajaj Electricals by Mahindra Logistics with the dual goal of achieving an improved level of service that is best in the industry and cost savings of over 25 percent.

The total contract value of the business will be more than Rs.1,000 billion over the next five years and is the result of a unique and collaborative solution.

In close cooperation, MLL has developed a completely redesigned and consolidated logistics network for BEL, which includes warehouse optimization, transport management and inventory movement through technology, best practice and automation.

At the center of the network are two large, state-of-the-art mega-warehouses in Delhi and Mumbai with cutting edge technology, automation and skill building enhanced through environmentally conscious, environmentally friendly and sustainable storage practices.

This network will continue to operate fully IT-enabled fulfillment centers from which BEL dealers, distributors and customers can enjoy market-leading delivery times.

As part of the solution, MLL will provide a healthy mix of dedicated long haul fleets and local distributors made possible by the latest tracking technology and control tower operation. There will also be a transition to sustainable logistics with electric delivery vans from EDel by Mahindra Logistics.

For BEL, this project represents a significant transition to using logistics management as a competitive advantage.

“By adapting our learning from different industries, we have been able to develop an innovative solution for the consumer durables and electronics business that leverages our reach, expertise and technology investments in equal measure,” quoted Rampraveen Swaminathan, CEO and Managing Director of MLL than to say.

This association is an important end-to-end outsourcing of an entire logistics system by a leading Indian group of companies.

Bajaj Electricals and Mahindra Logistics will continue to look for areas of logistical collaboration between companies to gain competitive advantage and optimize costs, the press release said.

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