Bajaj Electricals Limited (BEL) and Mahindra Logistics Limited (MLL) has recently signed an agreement for innovative logistics optimisation and outsourcing arrangement. This deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics by Mahindra Logistics, with the twin objectives of achieving enhanced & industry-best 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 the Indian Logistics industry, will be in excess of Rs 1,000 crores over the next 5 years and is the outcome of a unique and collaborative solution.

Working together closely, MLL has developed for BEL a fully redesigned and consolidated logistics network, with storage optimisation, transportation management and inventory movement through technology, best practice and automation. At the heart of the network, there will be two large ultramodern mega-warehouses in Delhi and Mumbai, with latest technology, automation and skillbuilding, enhanced by environmentally conscious, greener & sustainable warehouse practices. This network will further operate fully IT-enabled fulfilment centres from which BEL’s dealers, distributors, customers will enjoy market-leading delivery lead times. As part of the solution, MLL will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks, enabled by the latest 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, this project marks a significant transition towards leveraging logistics management as a competitive advantage. Anuj Poddar, Executive Director, Bajaj Electricals Ltd, said, "At Bajaj Electricals, we have been actively working towards various strategic initiatives to enhance value for our customers and other stakeholders. 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 & MD, MLL, said “I believe what we are aiming to do for BEL is truly unique and exceptional; enhancing service levels to their customers significantly, while simultaneously driving down costs . I don’t think this would be possible without the extensive use of technology - across network design, warehouse management and transport optimisation and control. 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.”

This association is a major end-to-end outsourcing of an entire logistics by a leading Indian business group. Bajaj Electricals and Mahindra Logistics will continue to seek areas of logistics collaboration across businesses as a means of achieving competitive advantage and cost optimisation.