Mumbai (Maharashtra) [India], March 3 (ANI): Bajaj Electricals Ltd (BEL) and Mahindra Logistics Ltd (MLL) on Wednesday signed a five-year, Rs 1,000 crore agreement for logistics optimisation and outsourcing arrangement.
The deal is an end-to-end redesign and outsourcing of BEL's entire logistics by MLL with the twin objectives of achieving enhanced service levels coupled with a logistics cost saving in excess of 25 per cent.
"The total contract value of this one-of-its-kind deal in Indian logistics industry will be in excess of Rs 1,000 crore over the next five years, and is the outcome of a unique and collaborative solution," both companies said in a statement.
MLL has developed for BEL a redesigned and consolidated logistics network with storage optimisation, transportation management and inventory movement through technology, best practices and automation.
At the heart of the network, there will be two mega-warehouses in New Delhi and Mumbai with latest technology, automation and skill-building enhanced by sustainable warehouse practices.
The network will further operate IT-enabled fulfilment centres from which BEL's dealers, distributors, customers will have delivery lead times.
MLL will deploy long-haul fleets and local distribution trucks enabled by tracking technology and control tower operations. There will also be a transition towards sustainable logistics using electric delivery trucks from EDel by Mahindra Logistics.
For BEL, the project marks a significant transition towards leveraging logistics management as a competitive advantage. "We have been actively working towards various strategic initiatives to enhance value for our customers and other stakeholders," said Executive Director Anuj Poddar.
"This collaboration with MLL is one such key initiative and I am confident that it will help transform our logistics, help us serve our customers efficiently, strengthen our competitiveness and also drive improved margins."
Rampraveen Swaminathan, CEO and Managing Director of MLL, said: "Adapting our learnings from disparate industry verticals allowed us to create an innovative solution for the consumer durables and electronics business leveraging our reach, know-how and tech investments in equal parts." (ANI)