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Exel GroupC6
LOGISTICS AND SUPPLY CHAIN MANAGEMENT

ASSIGNMENT: EXEL CASE

SUBMITTED BY
NAME
PGID
Sahil Batta
61510128
Abhijit Bharatkumar
61510877
I Shekhar Chawla
61510441
Pranika Kapur
61510672
Jatin Mehra
61510478

INDIAN SCHOOL OF BUSINESS

Introduction to 3PLs and Exel - Companies often face high costs in freight management and contract logistics due to limited scale of activities. On the other hand, 3PLs (logistics & supply chain management and services companies) act as aggregators of industry demand. Hence, by design, such firms achieve economies of scale and lower costs. Exel is a 3PL firm with an extensive land transport network, and provides air freight and sea freight services.
Context of the Exel - Hauz Mart relationship - Hauz Mart currently manages its own planning, while Exel manages 5 of the 6 Hauz Mart DCs through a 5 year contract, in addition to transport logistics through disaggregated service contracts. Exel also manages the entire supply chain of Hauz Mart’s private label home textile division. While this operation accounts for 15% of Hauz Mart’s total SKUs, this operation can serve as the launching pad of the Lead Logistics Partner (LLP) program with Hauz Mart. However, key challenges for Exel include offsetting the “just in case” behaviours of Hauz Mart managers through trust building and incentive alignment.
The need for joint planning - The case states that Hauz Mart is unable take advantage of efficiencies due to their limited knowledge of transport economics. Also, transport or managing logistics shifts focus from a company’s core manufacturing business to an external function which the company has less knowledge of. At the same time, Exel has several disaggregated contracts with Hauz Mart that may hamper inefficiencies in service delivery. Hence, the potential to lower costs through integrated service delivery and collective optimization is immense.
Deployment of Exel LLP program at Hauz Mart - Risks associated with Exel taking over
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