How global supply network helps Fleetguard Filters to be competitive

Fleetguard Filters (FFPL) is a leading manufacturer of filtration solutions for the automobile industry and caters to 100+ OEMS spread across the globe. It manufactures and supplies the full range of filtration products, ranging from air, lube, fuel and hydraulic to coolants and chemicals. Fleetguard’s products have a global reach and customer base they export to the USA, Belgium, France, Australia, Singapore, and many other countries.

Niranjan Kirloskar, Managing Director of Fleetguard Filters, spoke to Indian Transport & Logistics News about how their products are made available based on the needs of the customer and how shipping is done via appropriate modes of transport to fulfil customer requirements on time every time.

Their robust supply chain mechanism is based on buffer penetration reporting (BPR) from the Theory of Constraints (TOC) which they implemented for sourcing and supplying products. BPR ensures a stock build that absorbs all logistical shocks of transit lead times including the Red Sea concerns, leading to the smooth functioning of business. Edited excerpts:

How has Fleetguard developed a supply network in both the Indian and international markets?
FFPL has meticulously developed a robust supply network by strategically locating its production plants across India. With five production plants situated in Nandur (near Pune), Hosur, Jamshedpur, Sitarganj, and Dharwad, Fleetguard ensures proximity to key markets and OEMs, reducing lead times significantly. These strategically located facilities efficiently cater to the diverse needs of the Indian market.

Additionally, FFPL has established a global footprint by exporting products in collaboration with Atmus Filtration Technologies (formerly known as Cummins Filtration) to various international markets. This partnership ensures timely delivery and consistent product quality, bolstering FFPL's presence in global markets. The company's comprehensive supply network enables it to meet the dynamic demands of customers worldwide while maintaining a competitive edge in the filtration industry.

Can you elaborate on the strategies Fleetguard implements to maintain strong relationships with its network of dealers?
FFPL employs several strategies to maintain strong relationships with its network of dealers. Firstly, the company provides comprehensive training and support to its dealers, ensuring they are well-equipped to promote and sell FFPL products effectively. This includes technical training on product features, installation procedures, and troubleshooting techniques. Regular communication channels are established to solicit feedback and address concerns promptly, fostering collaboration and partnership between FFPL and its dealers.

FFPL implements a strategy of "One Minimum Order Quantity (MOQ) and One Minimum Order Delivery (MOD)," offering flexibility while maintaining efficient delivery processes. This approach ensures that dealers receive their orders promptly while minimizing logistical complexities. Through MOQ strategies, FFPL strengthens its relationships with dealers, maximises profitability, and ensures customer satisfaction.

FFPL offers attractive incentive programs and rewards to motivate and recognise dealer performance, aligning dealer interests with company objectives. Through these strategies, FFPL ensures that it’s a win-win proposition for Dealers and FFPL.

Are there any technological platforms utilised by Fleetguard to effectively manage its supply network?
FFPL harnesses advanced technological platforms to streamline its supply network management. The company employs cutting-edge Enterprise Resource Planning (ERP) systems to integrate and optimise inventory management, procurement, and production scheduling processes. These systems provide real-time visibility into supply chain operations, facilitating proactive decision-making and efficient resource allocation. FFPL leverages analytics tools to forecast demand, optimise inventory levels, and enhance supply chain efficiency. By analyzing historical data and market trends, FFPL can anticipate fluctuations in demand and adjust production and inventory accordingly.

In terms of inventory management, what approaches does Fleetguard take to ensure efficiency and accuracy?
Fleetguard Filters ensures efficient and accurate inventory management through strategic partnerships, real-time visibility, and proactive measures. By optimising its supply chain with strategically located warehouses and streamlined logistics, Fleetguard minimises lead times and ensures timely delivery to OEMs. The company employs flexible order options and personalised customer service to tailor deliveries to OEM needs.

In the Aftermarket segment, our distributors operate with remarkable efficiency, swiftly turning over inventory by selling and replenishing products with the least lead time benchmarked to the industry.

FFPL employs the Drum-Buffer-Rope (DBR) system, derived from the Theory of Constraints (TOC). By prioritizing production based on market requirements, FFPL ensures that relevant product inventory levels are optimised and made available to meet customer demand. These approaches collectively enhance efficiency and accuracy in FFPL's inventory management processes, resulting in improved customer satisfaction and operational performance.

All market spikes are decoupled by setting up the Distribution Center (DC) for After Market (AM) near the plant. This ensures the LMD (Last mile delivery) to any of its channel partners Across the country (except seven sisters) is done in a maximum duration of three days.

At FFPL when we talk about lead time it is only transit lead time. Other lead times like order, invoicing, production, etc…. are all made zero.

Could you describe the warehouse management processes implemented by Fleetguard to optimise storage, distribution, and logistics?
FFPL implements a robust warehouse management strategy to optimise storage, distribution, and logistics. By strategically placing warehouses and leveraging efficient inventory management techniques, Fleetguard minimises lead times and ensures timely product delivery to OEMs. The company focuses on real-time visibility and strong partnerships to enhance supply chain efficiency.

Fleetguard offers flexible aftermarket order options, responsive replenishment, and personalised customer service to meet OEM needs effectively. Furthermore, Fleetguard prioritises sustainability in its supply chain by strategically locating warehouses near customer sites. This approach not only reduces transportation distances but also minimises emissions, supporting an environmentally conscious logistics system. Overall, Fleetguard's warehouse management processes are designed to maximise operational efficiency, minimise costs, and provide seamless delivery of high-precision products to customers.

In After Market (AF) through Dynamic Buffer Management(DBM) & Auto Order Generation (AOG), the Make to Availability (MTA) inventory turn for distributors is ensured above the Prime Lending Rate (PLR).

Throughput Rupee Days(TRD) for Make to Order (MTO) shipments are at maximum through the power of aggregation.