Gati helped an automotive customer to design a Unique Storage Solutions along with redesigning its material flow for a distribution warehouse which handles a variety of pallet types, SKUs and operation.

With increasing demand of Just-in-Time warehousing by keeping raw material inventory in a warehouse nearer to the manufacturing plant and also understanding the supply- demand dynamics hold finished goods become more critical, leading players demand for an integrated service provider who handles raw material and FG under one roof along with the Milkrun movement between warehouse and manufacturing facilities carrying raw material and finished goods back while return flow. The major challenges that arise are with the dynamics of SKUs, supplier pallet size and aftermarket MPQ, many customers end up having numerous pallet variants in handling. Many of them face issues on having multiple storage solutions and MHE solutions with increase in investment on capex. In addition, they have dedicated area and resources of each set of operation, e.g., raw material store - domestic, import items, export store, finished goods store, over dimensional cargo store etc. This is where Gati's expertise in end-to-end supply chain solutions comes into play. Gati's expertise was called upon as a 3PL partner to smoothen the logistics side of their operations.

Challenge
Handling multiple operations like raw material feeding to plant and finished goods dispatches to dealers/OEM under one roof in JIT concept
Storage handling of more than ten different pallet dimensions
Solutions
Development of a single customised racking solutions, which handles all pallet variants like Euro pallet (800 mm x 600 mm), Half Euro pallet (800 mm x 1,200 mm), standard Indian pallet (1,000 mm x 1,200 mm) variants with different load capacity.
Integrated material and information flow for both raw material and FG operations.

Benefits
Unified racking solutions so any pallet of FG and raw material can be stored anywhere in the warehouse
Reduced space since earlier setup had safety Stock in each store
Reduced resources by bring the operation in one roof
Reduced capex investment
Overall operating cost been reduced to customer
Gati provided a solution recognising cost efficient operations, which enabled the customer to outsource the operations to Gati to Build to Suit (BTS) the facility for handling above said operations under one roof.
(Communication provided by company)