By Industry – Equipment

Kirloskar Oil Engines Ltd. (KOEL)

After moving away from forecast-based to consumption-based operations, the company now offers guaranteed deliveries in one week.

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Case Study

View senior management at Kirloskar Oil Engines Ltd.(KOEL), their suppliers and dealers discuss the benefits of moving away from a forecast-based model to consumption-based operations. KOEL is now not only able to offer guaranteed deliveries in ONE WEEK (industry standard is four-six weeks) but have also reaped several financial and operational benefits.

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Clients

Client Speak

Dara Byramjee

Executive Vice President & Business-Head, Godrej Security Solutions

With 3 times more output from the same capacity and reduced working capital requirement, we were able to improve our ROCE by three times.

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Kirloskar Oil Engines Ltd. (KOEL)

Kirloskar Oil Engines Ltd. (KOEL) is a leading Diesel Engine and Generator Set (Gen-set) manufacturer in India. They design, manufacture and supply Diesel Engines, which is at the heart of Gen-sets. Though this industry is aware that customers need fast and reliable delivery, KOEL and its competition could only offer customers delivery lead times of over 4-6 weeks because of the complexities in their manufacturing and supply chain. But after moving away from forecast-based model to consumption-based operations, the company is now able to offer guaranteed deliveries in one week. The company’s working-capital-turns also improved phenomenally converting KOEL from a persistently cash-starved business to a healthy one.