Marico Limited: Warehouse Automation and Technology Selection

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Abstract

The case demonstrates how warehousing automation projects are pitched, initiated and executed when the management is sceptical of the success of new technologies. In FY 2020–2021, Marico achieved a record-high turnover of USD 1.3 billion. The company’s future looked bright, and sales were expected to increase. The situation on the shop floor was challenging. After analysing the potential challenges associated with an expected increase in demand and considering the prevailing situation at the existing company sites, Vaibhav Kulkarni, Works Head, and Chirag Ojha, Projects and Supply Chain Manager, were convinced that the existing sites of Marico had many operational issues that could no longer be ignored. They pitched the idea of a greenfield project with automated technologies. Although the management was ready for expansion, a greenfield project with high-tech robotic systems seemed considerably aspirational for the company. What alternative technology options were available in the market? What was the cost to the company for the different options? What parameters needed to be considered? How could the options be assessed fairly? How would the new technology affect the daily operations and morale of the company?

Additional Information

Product Type Case
Reference No. CTL0005
Title Marico Limited: Warehouse Automation and Technology Selection
Pages 22
Published on Dec 27, 2024
Year of Event 2022
Authors Roy, Debjit; Yadu, Bipin ;
Area Centre for Transportation and Logistics (CTL)
Discipline Operations Management
Sector Manufacturing
Learning Objective The case presents an opportunity to learn the role of decision making in a warehouse by taking into consideration supply chain issues and operational challenges. Through a discussion of the case, participants will • learn how to make decisions for a warehouse, by taking into consideration the operational challenges of supply chain and inventory management • analyse in detail the installation and commissioning of an automated storage and retrieval system (AS/RS) and a pallet-shuttle system, and the integration of a palletshuttle system with traditional storage systems • explore the nuances of packaging solutions to understand how a small change in parameters can influence the design of a warehouse
Keywords Warehouse; Automation; Technology; Cost Benefit; Space Management
Country India
State Gujarat
Organization Marico
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