Bajaj Electricals and Mahindra Logistics sign Rs 1,000 cr-contract

Bajaj Electricals Ltd (BEL) and Mahindra Logistics Ltd (MLL) signed a five year, Rs 1,000 crore contract for innovative logistics optimisation and outsourcing arrangement. BEL will outsource its entire logistics to MLL, which will also provide a complete end-to-end redesign. It will help them to achieve enhanced service levels coupled with a logistics cost saving in excess of 25 per cent.

“This deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics by Mahindra Logistics,” said a statement.

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. They will use electric delivery trucks from EDel by Mahindra Logistics. The network will further operate IT-enabled fulfilment centres from which BEL’s dealers, distributors, customers will have delivery lead times.

As part of the solution, two large ultramodern eco-friendly mega-warehouses in Delhi and Mumbai, equipped with the latest technology, automation and skill-building, enhanced by environmentally conscious, greener & sustainable warehouse practices will serve as the heart of the network.

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Commenting on the development, BEL Executive Director Anuj Poddar said, “Bajaj Electricals has been actively working towards various strategic initiatives to enhance value for its 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.”

MLL Managing Director and CEO Rampraveen Swaminathan said, “the company is aiming to enhance service levels of BEL 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 major end-to-end outsourcing of an entire logistics by a leading Indian business group.