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Bajaj Electricals signs INR 1000 cr logistics deal with Mahindra Logistics

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Bajaj Electricals Limited (BEL) and Mahindra Logistics Limited (MLL) on Wednesday have announced their partnership for innovative logistics optimisation and outsourcing arrangement.

The partnership involves an end-to-end redesign and outsourcing of Bajaj Electricals’ logistics by Mahindra Logistics, with the twin objectives of achieving enhanced and industry-best service levels, and a cost-saving in excess of 25 per cent.

The total contract value of the deal will be in excess of Rs 1,000 crore over the next five years and is the outcome of a unique and collaborative solution.

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.

The network, will have two large ultra-modern mega-warehouses in Delhi and Mumbai, with latest technology, automation and skill-building, enhanced by environmentally conscious, greener & sustainable warehouse practices.

Furthermore, the network will operate fully IT-enabled fulfilment centres from which BEL’s dealers, distributors, customers will enjoy market-leading delivery lead times.

As part of the new partnership, 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.

The project marks a significant transition for BEL, towards leveraging logistics management as a competitive advantage.

“Adapting our learning 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.”

~ Rampraveen Swaminathan, chief executive officer and managing director at MLL

This partnership marks a major end-to-end outsourcing of the 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, said the release.

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