Igniting Success with 15% reduction in upcountry transportation cost for a FMCG-Pharma Giant

The FMCG-Pharma companies often cater to a large geographical area, serving a wide network of customers, retailers, and healthcare providers. While operating across such large areas, it becomes even more important to optimise distribution networks, establish robust transportation infrastructure, and implement advanced inventory management system for timely and cost-effective deliveries.

The challenge of two distribution centres serving similar areas

The client, a leading FMCG-Pharma company had been operating out of two distributions centres serving similar regions. The warehousing operation was managed by a local carrying and forwarding agent (CFA) and another vendor handled parcel distribution providing limited visibility into the distribution process. Even though operating in multiple shifts the distribution centres had less than expected throughput and low distribution visibility.

Transforming FMCG-Pharm Supply Chain with Our Integrated Warehousing & Distribution Solutions

With our integrated warehousing and distribution solutions, we manage over 500,000 inbound and outbound units per month, maintain more than 6,500 pallet positions, and serve 163 locations across the country for the customer.

Consolidation of Distribution Centres: We streamlined operations by consolidating two distribution centres into one Central Distribution Centre to efficiently serve the entire Telangana and Andhra Pradesh region. Additionally, we optimised storage space through rack installations with a replenishment model. This strategic move not only enhanced operational efficiency but also helped optimize inventory and improve overall service levels for our customer across the region.

End-to-End Transportation: Managing end-to-end transportation for the customer with simplified per-case billing, we implemented a mix of Full Truck Load (FTL) and Part Truck Load (PTL) transportation models based on daily demand, thereby optimizing the overall cost of distribution.

Temperature Controlled Storage: With our temperature-controlled warehousing solutions, we meticulously monitor and regulate temperatures within specified ranges, ensuring the integrity of products from storage to delivery.

Igniting Success: Driving Profitability and Cost Savings

Increased OTIF from 88% to 96%+
Reduced upcountry transportation costs by 15%
Zero handling damages Productivity
improvement by 17%
On-time delivery improved to 99%
Customer service levels maintained at 99%

The successful implementation of our tailored integrated warehousing & distribution solutions, combined with various strategies and processes, resulted in significant improvements in efficiency and cost savings for the leading FMCG-Pharma company.