Procurement Made Faster and Profitable at Voltas Limited
Technology Made Procurement Faster @ Voltas Ltd,
Aiding Competitive Edge in Meeting Market Demands
The Fast-Moving Consumer Durable (FMCD) industry is characterized by its volatile market demands, triggered by seasons, events and festivals. To remain competitive and not lose market share, fast and prompt response to customer demands ensuring timely retail presence is critical. Voltas India, the leading consumer durable manufacturer, has multiple manufacturing units across North and West India. These manufacturing plants cater to their pan-India presence through 25 warehouses. This makes the supply chain complex.
Moreover, FMCD sector is an extremely price competitive market with thin margins. Cost optimization across the supply chain is critical. Procuring logistics is a challenge for Voltas, not only for the volatility and complex supply chain, but also for factors like varying fuel prices and limited availability of transportation during peak demands. Procurement leaders needed strategies that can help reduce cost. Also, quick finalisation of logistics contracts is of utmost importance, not only to maintain margins but also to reach markets on time.
Connecting the manufacturing units with 25 warehouses through manual setup of logistics contracts was time-taking and hindered the scalability of Voltas. Digitization & automation were the need of the hour to bring in speed in procurement without additional cost burden. Voltas aimed to reduce the manual effort and save time & cost by implementing an eProcurement solution – mjPRO.
mjPRO is the SaaS based & AI powered eProcurement platform, that empowered leaders at Voltas in infusing speed and intelligence in procurement.
About Voltas Ltd.
Voltas Limited, an esteemed multinational based in Mumbai, India, provides an array of technologically advanced home appliances. The company's products, including energy-efficient air conditioners, sophisticated refrigerators, washing machines, and water dispensers, blend functionality with aesthetics. Voltas' air conditioners offer eco-friendly cooling, while their refrigerators utilize innovative technology for food preservation and energy saving. Their washing machines, dishwashers, microwaves, and air purifiers stand out for their robust performance and unique features. Voltas also provides efficient after-sales services through a vast network of service centers. The company embodies technological superiority, unparalleled quality, and exceptional service, enhancing everyday living by transforming houses into comfortable homes. Voltas' continuous commitment to innovation, excellence, and customer satisfaction is at the heart of its corporate philosophy.
mjunction’s Key Differentiators
A complete solution to cater to not only logistics procurement, but one that can handle all kinds of buys
Robust RFx & RA modules integrated with each other to enable speed in procurement
Powerful negotiation methodologies and eAuction strategies for determining the best possible price
The Challenges Faced by Voltas that Necessitated a Procurement Transformation for Building Scale and Agility
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Volatile Market
Demands fluctuate in FMCD sector and Voltas needs to meet the market demands promptly or lose market share.
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Complex Supply Chain
Multi-level distribution points from plants to warehouse to depot to retail, based on locations across India. The sheer number of warehouses that Voltas operates across India, necessitated a rapid response when it came to mapping transporters and transportation routes.
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Price sensitive Transporters
Varying fuel prices make it tough to set up long term contracts.
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Limited supply during peak seasons
Vehicles needed to be booked fast before the competition did, as logistics supply becomes insufficient with respect to the market demand during peak seasons.
How mjPRO helped Voltas India Optimize and Streamline their Procurement Process
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- RFx management
- Bid collection & Evaluation
- to Negotiation & Reverse Auctions
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Configurable dashboards & templates made change management smooth & hassle-free
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Helpdesk facility for seamless adoption management across Users and Suppliers
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Reverse auction module handled direct auctions along with auctions from RFx, unlocking higher processing speeds
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To avail the best possible prices, Voltas Ltd employed various strategies of eReverse Auctions
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Reduced Turn Around Time (TAT) of transactional activities Standardization of RFQ, comparative statements and approval templates
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Automation features like auto-generated CS after every round of price revision, prepopulation of delegation of power for instant setup & approvals etc. were activated.
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System driven auto alerts were activated for
- Timely quotation submission
- Approvals
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User-wise pending dashboards ensured that all activities are
- Tracked
- Monitored
- Completed on time
mjPRO brought about Significant Transformations at Voltas India
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Streamlined sourcing and procurement process, unlocking executive bandwidth
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Powerful online negotiation tools, ensuring sustainable cost advantage
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Quick set-up of Logistic contracts, at desirable prices
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Securing credible transporters, faster than competition
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“On-time & in-full” fulfilment of finished goods, meeting seasonal market demands
mjPRO Significantly Optimised Time and Cost, Making Voltas India Gain Competitive Edge
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Procurement TAT reduced to less than 2 days
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Time taken to complete negotiations reduced to less than 1 hour
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The average savings were more than 8%
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Voltas reported savings exceeding 32 Cr from market prices within the first year of operation
mjPRO is a Saas Product from
mjunction services limited
