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Chennai, NFAPost: Daimler India Commercial Vehicles (DICV) has announced the modernisation of its 30,000 square meter Domestic Parts Warehouse in Oragadam, which employs over 350 people.

The warehouse already handles more than one million transactions a year – about two transactions every single minute – and aims to improve efficiency further through the modernisation project.

VP of Supplier Management & Logistics Trucks Asia India Muthu Maruthachalam C said, “In the last year, we have completely overhauled our warehouse from the ground up. We took a 360-degree approach to modernisation by introducing more efficient processes, automation and digitalisation. Our smooth BSVI ramp up is testament to the success of this ongoing project.”  

DICV’s Supply Chain and Logistics function is constantly searching for better ways to synchronize its processes and systems to match product upgrades and volume targets. One such initiative was the introduction of a new kitting concept and internal sequencing operation that helped the warehouse feed parts to the production line in a more efficient manner. This was critical for successful ramp up of BSVI vehicle production, especially during the parts supply challenges brought about by recent lockdowns, the company said.

The company has also invested in a SAP-based WMS (Warehouse Management System) that will go live in October. This system will further improve stock accuracy and traceability, while reducing obsolescence by ensuring FIFO/shelf life monitoring. The upgraded WMS will also enable tracking of parts within the warehouse, including pre-defined storage locations, storage levels and optimization of material flow using advanced put-away and picking techniques, the company added.

As a next step, DICV is planning to introduce new infrastructure and equipment such as high bay racks and VNA (Very Narrow Aisle) forklifts that optimize usage of the warehouse’s available space.

DICV’s assembly line follows a fish bone concept that routes two thirds of material just-in-time and enables direct delivery on the line. The company will soon begin ‘just-in-sequence’ based supply with two pilot suppliers for better space and inventory optimisation. 

With around 400 Indian suppliers and over 125 million parts exported worldwide, DICV has proven to be a successful example of the ‘Make-in-India’ concept.

Considering the volume of export parts handled, DICV also recently moved its third party logistics warehouse to its Oragadam plant. With two shift operations, the new 2000 square meter Export Parts Warehouse has the capacity to handle more than 3,000 pallets of parts, 100 containers and 200 truck movements in a month.

DICV, a wholly owned subsidiary of Daimler AG, Germany and operating under the umbrella of Daimler Trucks Asia, is a full-fledged commercial vehicle player in the Indian market and the only Daimler entity worldwide with a brand dedicated to its home market: BharatBenz.

DICV produces and sells in India above 9 to 55 tons trucks as well as BharatBenz buses, Mercedes-Benz coaches and bus chassis. DICV’s state-of-the-art manufacturing plant at Oragadam near Chennai spreads over 400 acres (160 hectares) including a highly modern test track and is home to the company’s headquarters, R&D and training operations. With one global quality standard, it also produces for Daimler Trucks’ brands of FUSO, Mercedes-Benz and Freightliner. Products and parts are exported to more than 50 markets in the Africa, Asia, Latin America and the Middle East. DICV represents an overall investment of more than Rs 5,500 crore. 

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