HCL Technologies Ltd., a global IT service company, said it has entered into a three-year contract with M.J. Logistic Ltd., a leading third-party logistics or 3PL solutions provider in India, to provide an end-to-end integrated applications and infrastructure management services using Sterling Commerce solutions. The company did not disclose the contract value.
MJ is setting up a first-of-its-kind logistics centre at Palwal (Delhi-Agra highway) and the first phase of construction is in progress and this engagement will enable MJ to seamlessly integrate clients' ERP systems and provide real time inventory visibility and improved customer service.
The New Delhi-based company said the scope of contract covers providing end-to-end integrated services including implementation, support, hosting, monitoring and VSAT connectivity to extend the capabilities of the upcoming facility.
HCL, as a premier reseller of Sterling Commerce, will also implement Sterling Warehouse Management Systems (WMS) and Sterling Director Solutions at MJ.
Sterling WMS, part of Sterling Selling and Fulfillment Suite, will provide MJ with robust planning, execution and measurement tools to efficiently use inventory across the extended enterprises. MJ will use Gentran, one of the most widely used and trusted electronic data interchange and date translation solutions in the industry, for their business-to-business communication needs.
Through this relationship, HCL's Retail Practice would orchestrate infrastructure and business process outsourcing services, thereby adding value to MJ's business at the point of sale and thorough the entire value chain.
The overall 3PL market in India accounts for less than 20%, compared to more than 40% in developed countries. There is a huge potential for IT investments by companies such as MJ as they develop state-of-the-art warehouse operations for multiple users, the company said.
HCL has over 70 plus end-to-end supply chain engagements ranging from consultancy to maintenance and support. It also ahs 200 plus domain experts focused on SCM for strategic alliance partnerships with leading SCM package vendors including SP, Oracle, i2 and Manhattan.
Sidhartha Chowdhury, Vice President and Global Head of Retail and Logistics of HCL Tech, said, "We are pleased that our domain expertise in this arena has helped MJ choose us to automate the warehouse management process and manage the growing complexities of their business. We stay committed to creating transformational value for MJ in this engagement and look forward to a long and mutually-rewarding relationship."
Anil Arora, Managing Director of MJ Logistics, said, "Justifying warehouse management investments and the challenges of its implementation have been long-standing bottlenecks for seamless integration of 3PL offerings with customers IT systems. MJ has addressed these issues by partnering with HCL and investing upfront in a world-class product from Sterling WMS."
At the BSE, HCL Tech shares are currently trading at Rs.105.40, up by Re.1.55 or 1.49% on a volume of 1.68 lakh shares.
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