FMGIL primarily relies on the land mode of transportation to distribute its products to its customers on time. The OEM supplier uses trucks to deliver goods to its customers. The products can potentially go through two channels of distribution depending on the location of the customer, and/or the storage unit.
The Mogul depots serve as warehouses, as well as places for last minute value addition to the products. For example, one of Goetze’s major customers prefers piston rings to come assembled onto the piston. In order to fulfill this requirement without compromising on the quality of the product, FMGIL ships the two products separately to a depot near to its customer’s manufacturing unit, where the parts are assembled and converted into a single product, as desired by the customer.
In addition to learning about the FMGIL distribution system, I learned how the supply chain team keeps a track of all products as they go through the delivery process. Freight Verification Tool or FVT facilitates verification of freight, a process that registers the Purchase Contract of freight services and verification of freight invoice. The attached file demonstrates this process in detail.