Future Supply Chain Solutions Ltd. 1 Reducing Uncertainty, Managing Variability Systems & Process Technology People Knowhow & Expertise Infrastructure Automation VRMP TMS SCM Integration Network & Orchestration ERP WMS PTL VTS About FSC & its Global Affiliation Inception: 2007 Promoters: • Future Group with a $ 3 Bn Turnover • Fung Capital (PE Firm of Li & Fung Group) with $ 20 Bn Global Turnover • Anshuman Singh, MD & CEO Future Group Future Group are pioneers of Modern Retail in India. Through over 16 million square feet of retail space in 95 cities across the country , the group serves products and services to more than 300 million customers every year, supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. Fung Capital Fung Capital is the private equity partnership of Victor and William Fung, the Chairman and Group Managing Director of the Li and Fung Group. Li & Fung Ltd is world’s leading consumer goods sourcing and logistics company, with over 28,000 people working in more than 300 locations in over 40 different markets across the world. 3 FSC Business Offerings Reducing Time-to-Market x Cost-to-Market = Increased Revenues + Increased Profitability For All Our Customers Consulting Contract Logistics Express Logistics Tech Enabled Single User/ Multi User Warehousing Inbound to Manufacturing In Plant Logistics Vendor Managed Inventory Value Added Services like Kitting, Packaging Cold Chain E-commerce Logistics Shared/ Single User Warehousing Last Mile Delivery Reverse Logistics Import 4 FSC’s Automotive Practice In-plant Logistics | VMI Management | Inbound to Manufacturing | Tech enabled Warehousing | Kitting & Pre-packing | Express Logistics| Milk Runs | Transportation Management | SCM Solution & Design Tech enabled Warehousing & DC Management | Primary & Secondary Packaging | Kitting, Bundling & Promo packing |Express Logistics| Transportation Management | SCM Solution & Design Integrated Warehousing & Distribution network Automotive Supply Chain Slide # 7 Recent Trends in Automotive Industry Trends 3PL Differentiation Regulations around GST and Product recalls GST Ready Time Sensitive Fulfillments with scalability offerings High Demand Volatility Responsive & Agile Supply Chains Fast Growing Aftermarket Integrated Warehousing & Distribution Product & SKU Proliferation Best Practices from different industries Slide # 8 GST Readiness – Big Box Logistics Parks Area of minimum 1 MN sq.ft. each Dedicated Truck Parking Bays Wide Roads to manage peak outbound & inbound Amenities for Drivers Safety, Health & Environment compliant 9 Going Vertical – Warehousing Services 10 CASE STUDY - 1 INCREASING OPERATING EFFICIENCIES FOR ONE OF THE LARGEST AUTOMOTIVE OEM IN INDIA 11 Customer Context Reduce SCM cost for Slow Moving & New Vehicle Spare parts storage North Slow Moving & NVS part storage No. of SKUs handled – more than 40,000 Manpower – more than 120 East West Slow Moving & NVS part storage Slow Moving & NVS part storage FSC Implemented SMS & NVS MDC In Nagpur FSC Solution 1. MDC for All SMS & NVS Parts 2. Better Client WH utilization for FM parts facilitating increase in sales 3. Inventory Reduction, Increase in turns 4. Pan India Transit time: 3-5 Days 5. High Cube Storage utilization to save on Rent Cost Slow Moving & NVS part storage South 12 FSC Distribution Center Dedicated Facility – Excise Bonded, Area: 1.2 Lac sft, Height: 12 mts (Clear) G+7 Racking: 9,000 + Pallet Locations G+2 Shelving: 30,000 + Bin Locations 50K sft Open Space for storing Cabs & Cowls Insulation & Louvres on side walls Truck Parking Area for 30 Full Length Trailers 125% 100% 75% 50% 25% 0% Improvement from Baseline Unit Cartonization Efficiency Target for Future against Baseline Picking Efficiency Kitting Efficiency 13 FSC Impact Efficiency Improvement Areas Unit Cartonization FSC Approach Technology • Automatic Sealing using conveyor system Doubled the capacity 20%increase in productivity Picking People & Process Kitting Improvement from Baseline • Faster Learning Curve ~100% increase in Productivity Enhanced Capacity to 1.5 Lakh kits per month 14 CASE STUDY - 2 INCREASING FILL RATES FOR AN MNC AUTOMOTIVE OEM IN INDIA Slide # 15 Customer Context Low Fill Rate, Longer Lead time, Low CSI Pan India Supply Chain Network Designed by FSC Hassangarh North DC 18 X ABC Distributors Kolkata East DC 7 X ABC Distributors NDC Pithampur No. of SKUs handled – more than 3,000 Manpower – Approx 40 Bengaluru South DC Slide # 16 28 XABC Distributors FSC Impact Improvement Areas FSC Approach Lead Time Improvement from Baseline 50% Network Design Inventory Reduction 50% Fill Rate 25% Customer Satisfaction Index Deepened Regional Penetration 50% Slide # 17 CASE STUDY - 3 JIT MANAGEMENT FOR ONE OF THE LARGEST AUTOMOTIVE OES IN INDIA Slide # 18 Customer Context RDC Primary Secondary Distribution Distribution Gurgaon OEM Cluster / AF Jaipur Factory Ghaziabad OEM Cluster / AF Milk Run Manesar Factory In-Plant Logistics Faridabad OEM Cluster / AF SKUs – more than 350 Manpower – more than 30 •In plant Logistics, Component & Spares Warehousing, Inventory Management • Sequenced Binning, & JIT Feeding to OEMs (Maruti, Hero Moto Corp, Honda Motors) • Spares Distribution (including re-packaging for Maruti) Slide # 19 FSC Impact Improvement Areas FSC Approach Fill Rate Increase in Sales Improvement from Baseline 50% Network Re-design 20% Slide # 20