PROJECT NAME:Replenishment & Route Optimization Ajanta Inc.

The key objective of this project is to optimize Ajanta Group Inc's transportation network between Mumbai and Pune. This will maximize inventory transfer and route planning between these two cities' distribution centers, 3PLs and manufacturing plants. To optimize the logistics network, there must be an understanding of the routes, the availability of products in any warehouse facility, the demand for products in a DC and the location or coordinates of both the DC and the suppliers. The KPIs in our project's scope will include the cost of transportation, lead time, transfer time, backorders, and reduced weeks on hand. Establishing a well-connected network to streamline the logistics process cost-effectively and sustainably is paramount in this project.

PROJECT OVERVIEW

By performing a route optimization analysis of Ajanta Inc., we can identify the weaker points in their distribution process to perform these tasks with a smaller carbon footprint and optimize the inventory through understanding the loading efficiency, WMS (Warehouse Management System), and TMS (Transportation Management System). This project will reduce the week-on-hand KPI for their SKUs (Stock Keeping Units) and minimize transportation costs. To save on transportation costs, we plan to optimize the routes so that the truck travels fewer miles. In addition, capacity loads in their entire inventories and their distribution centers. By analyzing the current transfer flow per unit (cases), cost, and the number of loads, we can recommend future transfer flows that would reduce the KPIs.

BACKGROUNDS

Currently, Ajanta transfers products between 6 DCs and manufacturing plants across. To complete the transfer of products, there must be a forecasted need (manually completed in Excel) for a DC which informs a buyer about the heaters through an ERP system. The buyer then manually initiates the process that moves the inventory to a DC that has the list not with the stock to another DC requiring-19 pandemic demand for PPE maximized. Now that the order has slowed down, Ajanta market to re-strategize its planning processes to ensure that they are not bearing unnecessary costs in terms of storage and transportation.

Right now, Ajanta is relying on the ERP system to take action. However, this system is archaic and needs to consider variables that can minimize the total driving time. Forecasts are also unpredictable and need to maintain elements of intuition in them. Backorders must also be fulfilled so that projections may be flexible.

PROJECT DESCRIPTION

The client is initiating this project to reduce two key KPIs. Weeks on Hand Inventory is one because they want to get items out of the warehouse as quickly as possible. Carbon reduction is another critical KPI they are eager to reduce, which can be achieved with transportation optimization. If these two KPIs are successfully tackled, not only will Ajanta reduce its transportation cost, improve its CSR and ESG objectives, and reduce the round trips between the manufacturing facility, distribution centers, and warehouse. Finally, the recommendation will help the company reduce operational costs and streamline transportation planning.

SCOPE OF WORK

Below is a detailed list of the phases that will need to be done to complete the project.

Phase Number	Phase Description	Date(s)
P1	Meet the team at the Ajanta Group's HQ in Pune to determine the scope of work.
P2	Collect all data required for the project through departments.
P3	A Supply Chain map to understand the current transportation flow fully.
P4	Use Excel to optimize routes.
P5	A new transportation flow map, report, and presentation.

Regarding the responsibilities, we will use our strengths to best perform in certain areas and work as a group for others. Collectively we will be responsible for optimizing routes and completing the new transportation flow map, report, and presentation. Finally, the Ajanta team will be expansible for ensuring we understand their business practices and capacity for change while also providing the necessary data.

TASKS AND MILESTONES

Below is a detailed list of the tasks that will need to be done regarding the functions above.

Task Number	Task Description	Date (s)
P1.T1	Travel to Pune & prepare for the meeting.
P1.T2	Arrive at Ajanta & meet the team.
P1.T3	Discuss the project and brainstorm requirements.
P2.T1	Meet with the team to discuss data needs.
P2.T2	Retrieve data from various departments.
P2.T3	Collection of data and information, ongoing
P3.T1	Analysis of data collected to understand the current flow.
P3.T2	A current supply chain map.
P3.T3	Review and revise the supply chain map.
P4.T1	A specific requirement for routes.
P4.T2	Analysis of data and develop an optimization algorithm.
P4.T3	Run optimization algorithm and review results.
P5.T1	A new transportation flow map.
P5.T2	A report summarizing the project.
P5.T3	A presentation for the team.
P5.T4	Present findings to the team

DELIVERABLES

A comprehensive analysis report outlining the current state of Ajanta's transportation network, including identified weaknesses and areas for improvement. This report will include data on the cost of transportation, lead time, transfer time, backorders, and recent weeks on hand. It will also present an assessment of the loading efficiency, WMS (Warehouse Management System), and TMS (Transportation Management System).

A proposed optimization plan for Ajanta's transportation network, including recommended routes for inventory transfer between Mumbai and Pune, inventory management strategies, and potential changes to warehouse and transportation management systems.

A cost-benefit analysis that compares the current transportation costs to the proposed transportation network design and quantifies the potential savings in terms of price and lead time.

A detailed implementation plan for the proposed optimization plan, including timelines, resources needed, and potential roadblocks.

OUT OF SCOPE

We plan to reduce emissions since we plan to optimize the routes so that the truck travels fewer miles. However, due to the tight project timeframe, we may need help to determine the specific number of emissions involved.

Refinement of the analysis and systems piloted by the team. The project team will provide a comprehensive research and proposed optimization plan, but any further improvement or optimization will be the responsibility of the client organization.

Implementation and execution of the proposed transportation network design and any necessary changes to the ERP system will not be part of this project's scope.

Maintenance and monitoring of the transportation network after the project is completed. For further work, these areas will be "handed off" to the client's logistics or supply chain team.

PROJECT REQUIREMENTS

To help with inventory and route optimization, we will need access to the following data sources from the company:

• Sales and demand data to understand inventory requirements.
• Inventory levels at each DC, including location and type of inventory.
• Shipping and transportation data, including costs and transit times (lead times). GPS Logistics may have to be involved as they handle shipping transfers between DCs.
• Supplier information and lead times.
• Warehouse or DC capacities and utilization data.
• Customer location data for route optimization.
• Historical data on inventory and transportation. Here, we would like to know the demand for the products anytime.
• Product and packaging information for accurate shipping estimates.

This data will help us understand the current state of the supply chain, identify inefficiencies, and make data-driven recommendations to optimize inventory levels and transportation routes. Most of this data may have to be pulled from ERP business central.

END OF PROJECT SIGN-OFF BY CLIENT

The client will determine the success of the project on the following parameters:

1. Cost savings in transportation.
2. A more sophisticated logistic network redesign for mid-mile distribution across Inc.
3. Reductions in Co2 emission from fewer miles travelled due to a more optimized route.

All the deliverables related to the project will be accepted, reviewed, and signed off by Ajanta. For all the administration-related duties, Customer Service & Logistics Manager will be the first point of contact to ensure meetings with Ajanta employees, and other relevant stakeholders happen.

REPORTING AND COMMUNICATION

The project status will be delivered through a weekly check-in with Ajanta Group Inc. Also, with this, informal communications through Microsoft Teams and E-mails between planned meetings as needed with the Ajanta supply chain planning team. Through Teams, we will upload and share documents.

QUESTION:

Project Description in thousand words