Reconfiguring the Supply Chain at Xtra Power Energy Systems



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Introduction

It was a hot summer day in June 2013. Pradeep Dutta (Dutta), proprietor of Xtra Power Group, sat on the third floor of his air conditioned office in New Delhi and reached out for the morning newspaper. The Times of India had become a regular morning indulgence for Dutta ever since he had shifted his office from the manufacturing plant in Ghaziabad. The headlines read “Delhi thirsts for power and sweats”.

The newspaper reported that many parts of the city were experiencing power cuts lasting one to five hours as high humidity levels had pushed power demand to a season’s high of 5.528 Megawatt. Dutta wondered whether his new line of open shielded batteries and reconditioned batteries would be able to meet the sudden surge in demand. ......

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As Dutta waited for Xtra Power Energy Systems’ (Xtra Power’s) Marketing Manager, Anurag Nanda (Nanda), and Operations Head, Osman Sheikh (Sheikh), to join him for the meeting with Dolphin Logistics Service Provider (DLSP), he reflected on the recent developments that had prompted him to do a rethink on Xtra Power’s supply chain configuration. It had all started two months earlier. Some of Xtra Power’s prominent retail partners had expressed displeasure over the fact that the used batteries that they had collected from customers for reconditioning were piling up at their facilities, increasing their warehousing costs. .....

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