Sesa Goa Ltd. is India's largest producer and exporter of iron ore in the private sector. The company, established in 1954, has seen its revenue grow at a compound annual growth rate of 26 percent during the past four years. Today, the firm conducts more than 7,000 truck runs daily to and from multiple locations, including mines, processing plants and jetties.
This presents a complex logistical challenge for Sesa. All the trucking routes are on crowded roads shared with other mining companies and the general public. In addition to dealing with the traffic, the firm must comply with government restrictions on transport time—it has to complete those daily runs within seven hours—as well as the allowable weight of truck shipments.
The company sought to automate internal processes to reduce bottlenecks at weighbridges.
Managing the logistics, the company reports, was a "daily battle" that required an army of workers to continuously monitor and coordinate operations among various agencies. In 2009, Sesa's managers decided to address these issues. They wanted to automate internal processes to reduce bottlenecks at weighbridges and deliver faster turnaround times of trucks at various checkpoints, and to develop a single database to provide visibility into its logistics operations.
In 2010, Sesa launched a radio frequency identification solution that decreases the overall time it takes for trucks to complete delivery cycles. "Any solution that reduces the trip cycle time for our logistics operation is a direct contributor to sales volume, especially in the limited time window allowed for transportation," says Suresh Rathi, Sesa's head of infrastructure and logistics. That's because if shipments reach customers faster, he explains, the company stands to save money and improve customer satisfaction.
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